RGA increases net income across traditional/non-traditional segments in Q2
Reinsurance Group of America (RGA) has reported an industry-wide increase in net income across its traditional and non-traditional segments of business in its second quarter 2016 results.
RGA's reported net income for the quarter was $236.1 million, an 81 percent increase on the $130.4 million it made in the same period of 2015.
Specifically, the US and Latin America traditional segment reported a pre-tax net income of $111.4 million, a 35 percent increase from $82.8 million in 2015.
The non-traditional business reported a pre-tax net income of $94 million, a 68 percent increase from last year's figure.
The traditional segment for Asia Pacific saw a pre-tax net income and pre-tax operating income rising to $34.5 million, from $4.3 million in the prior-year period.
According to RGA, this quarter reflected solid results collectively across the Asian operations, most notably Hong Kong.
The traditional segment for Canada reported pre-tax net income of $43.3 million, compared to $22.7 million in the second quarter of 2015.
The non-traditional segment for Canada, however, reported a decrease in pre-tax net income and operating income of $2.1 million.
The traditional segment for EMEA reported pre-tax net income and pre-tax operating income of $6.8 million, compared to $9.2 million in last year’s second quarter, which RGA attributes to an unfavourable claims experience, most notably in the UK.
The group's net premiums increased by 10.2 percent to $2.3 billion for the second quarter of 2016 results, compared to $2.1 billion for the same period last year.
Greig Woodring, chief executive officer, commented: “We are pleased with the quarter in practically all respects, as the bottom-line number was very strong. In addition, there were positive developments in many areas across segments and geographies, and our investment results reflected higher-than-normal variable investment income.
“Highlights of the quarter included improvement in Canada due to favourable mortality, continued momentum in our US asset-intensive business, and another good quarter from Asia Pacific. Our US traditional operations reported its best quarter in some time, based upon strong variable investment income and mortality results that were in line with expectations. Finally, top-line growth was particularly strong this quarter, based upon solid organic growth and in-force transactions.
“Looking forward, the macroeconomic environment remains challenging overall, but we continue to see good demand from clients for our solutions. We expect to continue to execute in both our traditional and transactional businesses.”
