Reinsurance Group of America (RGA) has reported a third quarter net income of $262.8 million, down $38.4 million from the prior-year quarter, driven partly by higher than expected traditional segment losses in Australia and modestly unfavourable results in Asia.
Overall results were buoyed by RGA’s EMEA traditional segment, which reported a pre-tax income of $25.3 million compared with $18.4 million in last year’s third quarter, as well as the Canada traditional segment posting a pre-tax income of $43.7 million, compared with $21.1 million the year before.
Adjusted operating income was down slightly against the previous year quarter at $256.3 million, a fall of $3.1 million.
Q3 consolidated net premiums totalled $2.8 billion, up 10% from last year’s third quarter of $2.6 billion, with adverse net foreign currency effects of $34.9 million.
“This was a very good quarter for us in many respects, as bottom-line results, premium growth and capital deployment were all strong,” explained Anna Manning, President and Chief Executive Officer.
“We continue to benefit from earnings diversity that comes from our global operating platform. Outstanding performances by several of our key businesses helped us to deliver strong bottom-line results in spite of earnings variability by segment and ongoing macroeconomic headwinds including lower interest rates and a strong U.S. dollar.”
“Investment results were very good, as alternative investments produced strong returns. These areas of strength more than offset a loss in Australia and unfavorable U.S. Individual Mortality experience,” she added.
“We also repurchased $30 million of common shares during the quarter for a year-to-date total of $80 million. We ended the quarter with an excess capital position of approximately $1.0 billion.
“Looking forward, we remain optimistic about the future and our business prospects, as RGA is well positioned in its markets, and we have a proven strategy.
“Ours is a long-term business and can be best judged by results over longer periods of time. We point to a long track record of successful execution and strong financial results, and we expect to continue to deliver attractive financial returns into the future.”
