Reinsurance Group of America (RGA), a global life and health reinsurer, has reported a consolidated net premium increase of 58.8% to $5.4 billion for Q1 2024.
This included a $1.9 billion contribution from a single premium pension risk transfer transaction in the U.S. Financial Solutions business.
The reinsurer has reported Q1 2024 net income to shareholders of $210 million, compared with $252 million in the prior-year quarter. The adjusted operating income for Q1 2024 was reported at $401 million compared with $349 million year over year.
Compared to 2023, excluding spread-based businesses, the first quarter investment income increased by 7%, primarily due to new business.
Meanwhile, the average investment yield was flat at 4.7% in the first quarter compared with 4.71% in the prior-year period due to higher new money rates offset by lower variable investment income in the first quarter, relative to the year-ago period.
The rate of equity (ROE) for the first quarter of 2024 was 10.2% with an adjusted operating ROE of 14.8% for the trailing twelve months. The reinsurer’s deployed capital reported was $737 million into in-force transactions.
Tony Cheng, President and Chief Executive Officer, commented, “Our first quarter was excellent, and we are off to a great start for the year, following a very strong 2023. Our Traditional business performed very well and the Financial Solutions business also had a good quarter. On our in-force transactions, we had a record quarter of $737 million deployed, and we continued to see strong momentum in organic new business activity.
“Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $0.6 billion. Based on favorable business conditions and RGA’s global leadership position, we are optimistic about the future and expect to continue to deliver attractive financial results over time.”
