Life reinsurer RGA has reported a third quarter net income of $213 million, compared with $263 million in the prior-year quarter.
Adjusted operating income totaled $239 million compared with $256 million the year before.
Consolidated net premiums totaled $2.8 billion, an increase of 1% over last year’s third quarter, with a favorable net foreign currency effect of $11 million.
Compared with the year-ago period, investment income decreased 16%, and the average investment yield decreased from 4.83% in the prior year to 3.66%.
“We are very pleased with our third quarter results and we continue to be proud of the resilience of our business in this challenging environment,” said Anna Manning, President and Chief Executive Officer, commented.
“While we experienced a material level of COVID-19 claims, the impact was manageable, and many of our segments reported strong results. Excluding COVID-19 claim costs, our U.S. individual mortality performance was very favorable in the quarter driven by positive large claims volatility.
“Estimated COVID-19 individual mortality claim costs in the U.S. were $100 million, at the low end of our range, while COVID-19 claim costs elsewhere totaled $40 million. This was partially offset by an estimated $30 million of favorable longevity experience, which is believed to be COVID-19 related.
“Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.5 billion,” added Manning.
“While there remains uncertainty as to the ongoing and ultimate impact of COVID-19 on our business, we believe that our strong financial condition and global business platform position us to successfully manage through this period.”
