RGA profits jump in 2014
Life reinsurer Reinsurance Group of America (RGA) posted a jump in profits for 2014, as it benefited from strong performance in a number of lines of business.
Its profits hit $684 million in the year ended December 31, 2014, compared with $418.4 million in 2013. The reinsurer’s operating income also jumped increasing to $638 million in 2014, compared with $358.4 million in 2013.
RGA’s Europe Middle East and Africa (EMEA) business posted a significant increase in its pre-tax operating income, totalling $136.4 million for 2014, compared with $71.1 million in 2013. RGA said the increase was primarily a result of strong operating performance in the UK due to favourable claims experience and the impact of two Global Financial Solutions (GFS) transactions that closed in 2014.
Its Asia-Pacific region also saw a jump in pre-tax operating income to $106.7 million in 2014, compared with a loss of $218.4 million in 2013.
Greig Woodring, president and chief executive officer, said: “Our very strong operating results this quarter capped off an equally strong full year, as operating income rose to $208.3 million, or $2.99 per diluted share in the quarter. As noted, the result was influenced by favourable tax adjustments, but the underlying results were strong irrespective of those adjustments.
“We continued to see the benefit of our global operating model, as demonstrated by the increased diversity of earnings by geography and product. The quarter was highlighted by excellent results in our core US traditional business. Our GFS and international lines of business, aside from Canada, sustained their recent strong momentum and favourable bottom-line results.
“We are quite pleased with the year as a whole, as we achieved strong operating results and continued to build our brand recognition worldwide. Our operating return on equity exceeded 12 percent, and the balance sheet remains strong. While the macro environment continues to be challenging in certain respects, we have continued to execute collectively across the organisation, and we are optimistic about future opportunities.”
