Reinsurance Group of America (RGA) reported fourth-quarter net income available to shareholders of US$148 million, or US$2.22 per diluted share, compared to US$158 million, or US$2.37 per diluted share, in the same quarter the previous year.
Adjusted operating income for the quarter totaled US$334 million, or US$4.99 per diluted share, compared to US$316 million, or US$4.73 per diluted share, a year earlier. Excluding notable items, adjusted operating income for the quarter remained at US$334 million, or US$4.99 per diluted share.
Net foreign currency fluctuations had a favorable impact of US$0.07 per diluted share on net income and US$0.09 per diluted share on adjusted operating income, compared to the prior year.
RGA CEO and president Tony Cheng (pictured above) highlighted the results, noting the record expected future value from the new business written during the year.
The company kicked off 2025 with a key investment in PACT Capital, an independent investment firm, in a bid to position RGA to further expand its presence in the alternative asset space.
For the full year, net income available to shareholders was US$717 million, or US$10.73 per diluted share, down from US$902 million, or US$13.44 per diluted share, in the previous year. Adjusted operating income totaled US$1.34 billion, or US$20.06 per diluted share, compared to US$1.33 billion, or US$19.88 per diluted share, in 2023.
Excluding notable items, adjusted operating income for the year was US$1.51 billion, or US$22.57 per diluted share. Net foreign currency fluctuations had a favorable impact of US$0.18 per diluted share on net income and US$0.06 per diluted share on adjusted operating income, compared to 2023.
In the fourth quarter, consolidated net premiums reached US$4.2 billion, a 1.2% increase from the prior-year quarter, despite an adverse net foreign currency impact of US$15 million. Net premiums included approximately US$150 million from a single premium pension risk transfer, down from US$500 million in the same quarter the previous year.
For the full year, net premiums rose 18.3% to US$17.8 billion, with an adverse foreign currency impact of US$59 million. Full-year net premiums included US$2.9 billion from single premium pension risk transfers, compared to US$1.5 billion in 2023.
What are your thoughts on this story? Please feel free to share your comments below.
