Reinsurance Group of America (RGA) has posted a strong set of second quarter results driven by international segments.
Operating income hit $155.1 million in the second quarter, a major increase from the operating loss of $71.8 million in the prior-year quarter. Net income also increased to $198.3 million in the quarter compared with a loss of $49.6 million in the second quarter of 2013.
The reinsurer said the strong results were driven by international segments, both EMEA and Asia-Pacific, and continued momentum in Global Financial Solutions (GFS).
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. Operating income rose to $155.1 million, or $2.23 per diluted share, premiums grew seven percent over the prior-year period and our annualised operating return on equity exceeded 12 percent this quarter.
“Our international segments saw strength in both the top line and bottom line, while GFS experienced strong new business trends and profitability across the board. Underwriting results were in line on a global basis, with EMEA particularly strong, US individual mortality basically back in line, but claims in Canada remained elevated.
“Like the first quarter, the claims in Canada were driven by large claims, those exceeding $1 million, but the experience improved in June, and we continue to believe that these results represent normal volatility as opposed to a systemic trend. We are encouraged by the results overall, our new business activity is strong, and we continue to be optimistic about the opportunities that we see before us.”
Reinsurance Group of America, Second Quarter 2014 Results, Greig Woodring, North America