RGA sees net premiums swell 18% in 2024 to $17.8bn

Reinsurance Group of America (RGA) has reported that net premiums for the full year 2024 totalled $17.8 billion, marking an increase of 18.3% from 2023.

According to the firm, net premiums for the full year 2024 included a contribution of approximately $2.9 billion from single premium pension risk transfers, compared with approximately $1.5 billion in 2023. However, in 2024, there was an adverse net foreign currency effect of $59 million.

The total net premium contribution by segment in 2024 was as follows: U.S. and Latin America led with $7.5 billion, followed by Asia Pacific at $3 billion, Europe, the Middle East, and Africa (EMEA) at $2 billion, and Canada at $1.29 billion.

Meanwhile, RGA’s full year net income available to RGA shareholders totalled $717 million, compared with $902 million in 2023.

At the same time, adjusted operating income totalled $1.34 billion for the full year 2024, compared with $1.33 billion the previous year.

The average investment yield increased to 4.82% in 2024, compared with 4.68% in the prior year, due to higher new money rates relative to the existing portfolio yields at the time.

For Q4 2024 alone, net income available to RGA shareholders was $148 million, compared with $158 million in Q4 2023.

Consolidated net premiums in Q4 2024 totalled $4.2 billion, an increase of 1.2% over Q4 2023, with an adverse net foreign currency effect of $15 million.

Tony Cheng, President and Chief Executive Officer, commented, “The fourth quarter capped off a tremendous year, as we delivered record annual operating earnings, with many achievements across our organization.

“In the quarter, we continued to see strong momentum in organic business activity in the traditional business, and our in-force transactions were solid, with $250 million of capital deployed.

“This brought our full-year capital deployment into in-force transactions to $1,676 million, a record for RGA and an increase of approximately 80% over the previous record in 2023. Equally strong was the record expected future value from new business written during the year, with a significant amount coming from exclusive opportunities.

“Our balance sheet remains strong, and we ended the quarter with deployable capital of $1.7 billion. Based on favorable business conditions and RGA’s global leadership position, we remain optimistic about the future and expect to continue to deliver attractive financial results over time.

“In that respect, I am delighted to report that we have increased our intermediate term financial targets, including raising our adjusted operating ROE target to 13% to 15%, to reflect the expectation of continued strong fundamentals of our business for the foreseeable future.”

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