Reinsurance Group of America (RGA) Q2 2024 earnings summary

Executive summary

• Adjusted operating earnings per share reached $5.48, with a trailing twelve months adjusted operating ROE of 15.3%, and net income for Q2 2024 was $204 million, nearly flat year-over-year.

• Net premiums increased 17.5% to $3.92 billion, driven by pension risk transfer transactions and organic growth.

• Strong performance across Asia, EMEA, and U.S. Traditional segments, with robust new business pipeline and favorable in-force management actions.

• $307 million of capital deployed into in-force transactions during the quarter, supporting long-term value creation.

• Quarterly dividend increased 4.7% to $0.89 per share.

Financial highlights

• Pre-tax adjusted operating income was $491 million for the quarter, up from $376 million year-over-year.

• Book value per share (excluding AOCI and B36) reached $149.01 as of Q2 2024.

• Net investment income for Q2 2024 was $1.08 billion, with new money investment rate at 6.22% and portfolio yield at 4.65%.

• Effective tax rate for the quarter was 25.5%, above expectations due to foreign income.

• Total assets reached $109.9 billion as of June 30, 2024.

Outlook and guidance

• Management expects continued strong business momentum, robust liquidity, and sufficient reserves even if interest rates remain at current levels for five years.

• No slowdown anticipated in capital deployment for Q3 and Q4, with focus on organic growth and in-force transactions.

• No material impact expected from recent tax law changes, including Bermuda Corporate Income Tax Act and OECD Pillar II rules.