RGA’s consolidated net premiums rise by 17.5% to $3.9bn for Q2’24

In Q2 2024, Reinsurance Group of America (RGA), a global life and health reinsurer, reported a 17.5% year-over-year increase in consolidated net premiums, reaching $3.9 billion compared to $3.3 billion in the previous year.

Consolidated net premiums saw an adverse net foreign currency effect of $33 million, after the exclusion of net foreign currency effect, consolidated net premiums increased by 18.5% for the quarter.

The growth was supported by a $282 million contribution from a single- premium pension risk transfer transaction within the US Financial Solutions business.

Q2 2024’s net income reported was $203 million, compared with $205 million in the prior-year quarter.

The firm’s adjusted operating income rose to $365 million compared with $297 million the year before.

Compared with the year-ago period, excluding spread-based businesses, Q2 2024 investment income grew by 10.9%, driven by the addition of large asset-intensive in-force transactions in recent periods.

The average investment yield increased to 4.65% for the quarter, up from 4.42% in Q2 2023 due to higher new money rates.

The reinsurer reported an effective tax rate of 24.3% for the quarter on pre-tax income, slightly above the expected range of 23% to 24% due to income earned in non-US jurisdictions.

For Q2 2024, the effective tax rate was 25.5% on pre-tax adjusted operating income, also above the expected range of 23% to 24%.

The reported rate on equity (ROE) for the quarter was 9.7% and the adjusted operating ROE was 15.3% for the trailing twelve months. The increased quarterly dividend was 4.7% to $0.89 per share, lastly, the deployed capital reported was $307 million into in-force transactions.

Tony Cheng, President and Chief Executive Officer, RGA, commented on the results: “Our second quarter was good overall, and we continue to have strong momentum, on the back of a particularly strong first quarter.

“Our Asia Traditional and Financial Solutions businesses had a very good quarter, and our US Traditional and EMEA Financial Solutions areas also performed well. We had a solid quarter of in-force transactions, with $307 million of capital deployed. Additionally, we continued to see good momentum in organic new business activity.”

“Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.0 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,” Cheng concluded.

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