RGA profits up despite higher US claims

Reinsurance Group of America (RGA) posted a solid set of third quarter results despite facing higher claims in the US.

Its profits hit $158 million in the third quarter of 2014, compared with $138 million in the third quarter of 2013. The reinsurer’s operating income grew to $159.8 million in the quarter, compared with $152.9 million in the prior-year quarter.

RGA said the strong results were driven by its international segments and the non-traditional business generated by Global Financial Solutions (GFS). However, it added that its North American traditional business had faced a period of higher claims.

Greig Woodring, president and chief executive officer, said: We are pleased to report strong operating results this quarter, as our diversified source of earnings by geography and product line continues to serve us well.

“The nature of our business is such that we periodically experience volatility in claims in certain lines of business, but our global business model and diversified product base continue to deliver strong overall results. We are encouraged by the results overall and continue to be optimistic about future opportunities.

“We also are encouraged by the diversification benefits of our global business, which is paying off in terms of both top- and bottom-line results.

“Regarding capital management, we have demonstrated a balanced approach toward deploying some excess capital into the business while also returning capital to shareholders. Our business generates sufficient capital to support our organic growth, with excess capital deployed into attractive block transactions and also returned to shareholders through share repurchases and dividends.”