Global life and health reinsurer, Reinsurance Group of America (RGA) has reported that full-year net income totalled $623 million compared with $617 million in 2021.
Adjusted operating income for the full year totalled $977 million, compared with $77 million the year before.
Net premiums for the full year totalled $13.1 billion, increasing 4.5% in 2022. RGA notes that full-year premiums reflected an adverse foreign currency effect of $490 million.
Excluding this net foreign currency effect, consolidated net premiums increased by 8.4% for the full year.
In Q4 alone, consolidated net premiums totalled $3.4 billion, an increase of 1.1% from the same quarter of 2021, with an adverse net foreign currency effect of $164 million. Excluding this net foreign currency effect, consolidated net premiums increased by 6.0% in the quarter.
Q4 investment income decreased by 2.8%, which RGA states reflects lower variable investment income. For the full year, investment income, excluding spread-based business, decreased by 2.1%.
Meanwhile, the average investment yield decreased to 4.45% in the fourth quarter from 4.70% in the prior year period, which RGA attributes to lower variable investment income.
For the full year, the average investment yield decreased to 4.69%, from 4.99% in 2021.
Anna Manning, Chief Executive Officer, commented, “It was a very successful year for RGA, and I view our fourth quarter performance as solid with many segments reporting strong results.
“Our Financial Solutions business continued to deliver very good results across regions and product lines, and the performance of our Asia traditional business was also very strong. In the U.S., Group and Individual Health businesses both performed well in the quarter.
“We continue to see good new business activity in our organic business and in the pipeline for in-force and other transactions.”
Manning added, “On the capital front, we deployed $80 million into in-force and other transactions, bringing the full-year total to $430 million.
“Additionally, we repurchased $25 million of common shares, bringing the full-year total to $75 million. Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.2 billion.
“Based on favourable business conditions and RGA’s global leadership position, we are optimistic about the future and expect to continue to deliver attractive financial results over time.”
