Reinsurance Group of America beats Q1 earnings estimates, shares rise

Published 01/05/2025, 22:58
Reinsurance Group of America beats Q1 earnings estimates, shares rise

Investing.com -- Reinsurance Group of America, Incorporated (NYSE:RGA) reported better-than-expected first quarter earnings on Thursday, sending shares up 2% in after-hours trading.

The global life and health reinsurer posted adjusted operating income of $5.66 per diluted share for Q1, beating analyst estimates of $5.44 per share. Net income available to RGA shareholders came in at $4.27 per diluted share, up from $3.16 in the same quarter last year.

Revenue for the quarter totaled $5.26 billion, slightly below the consensus estimate of $5.36 billion. However, net premiums increased 13% year-over-year when excluding the impact of large single premium transactions.

RGA reported favorable biometric claims experience across all segments, resulting in a $58 million benefit to the current period financials. The company also deployed $418 million into in-force block transactions during the quarter.

"Our first quarter was very good, and we are off to a strong start for the year," said Tony Cheng, President and CEO of RGA. "Our Traditional business performed particularly well as our biometric claims experience was favorable in all geographic segments."

The company maintained a robust balance sheet with an estimated $1.9 billion in excess capital and $1.3 billion in deployable capital at quarter-end.

RGA’s board of directors declared a quarterly dividend of $0.89 per share, payable on May 27 to shareholders of record as of May 13.

The reinsurer’s shares rose 2% in after-hours trading following the earnings release, reflecting investors’ positive reaction to the better-than-expected results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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