Demo
RGA NYSE· Reinsurance Group Of America, Inc
FundamentalsNews digest Peer analysis
Login
RGA NYSE· Reinsurance Group Of America, Inc
Earnings report Q3 2023

RGA, Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

RGA, Inc. reported robust revenue growth across its various segments in the latest quarter. The breakdown of segment revenues is as follows:

  • Interest and dividend income: $134 million for the three months ended September 30, 2023, compared to $135 million for the same period in 2022. For the nine months ended September 30, 2023, interest and dividend income amounted to $205 million, down from $287 million in the prior year.

  • Net income: RGA, Inc. achieved a net income of $289 million for the three months ended September 30, 2023, a significant improvement from a net loss of $75 million in the same period last year. For the nine months ended September 30, 2023, net income totaled $749 million, compared to $228 million in the prior year.

Strengths

RGA, Inc. demonstrated strong financial performance in the latest quarter, driven by notable increases in net income. The company's improved profitability can be attributed to several factors, including higher interest and dividend income, as well as effective cost management measures. RGA's management highlighted the positive impact of its capital-raising efforts and interest income received from its subsidiaries on its liquidity position.

Challenges

Despite the overall positive performance, RGA, Inc. faced challenges in terms of interest expense, which increased to $53 million for the three months ended September 30, 2023, compared to $45 million in the same period last year. This rise in interest expense could potentially impact the company's profitability if not effectively managed.

Noteworthy

It is worth noting that RGA, Inc. experienced a cumulative effect of modified retrospective adoption of Financial Services - Insurance on long-duration contracts, resulting in a negative impact on its shareholders' equity. Additionally, the company reported a cumulative effect of full retrospective adoption of Financial Services - Insurance on market risk benefits, which had a minor negative impact on its equity.

Summary

RGA, Inc. delivered a strong financial performance in the latest quarter, with significant revenue growth across its segments. The company's net income showed a remarkable improvement, driven by higher interest and dividend income. Despite challenges related to increased interest expense, RGA's effective cost management and capital-raising efforts contributed to its overall strength. The company's liquidity position remained stable, supported by its capital-raising initiatives and interest income from subsidiaries. However, the negative impact of retrospective adoption on shareholders' equity should be monitored. Overall, RGA, Inc. demonstrated resilience and solid financial performance in the latest quarter.

Source documents

Form 10-Q  filed on Nov 03, 2023
90 pages scanned

Reference data

Company financials Q3 revenue 5.01B
Analyst estimates Q3 EPS beat by 6.00%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.