Global provider of life and health reinsurance, Reinsurance Group of America (RGA), has reported Q3 2023 consolidated net premium growth of 31% year over year, as the firm returned to profit in the period.
Net premiums increased from $3.3 billion to $4.3 billion in Q3 2023, and rose from $9.6 billion in 9M 2022 to almost $11 billion in 9M 2023.
RGA notes that net premiums include an $820 million contribution from the U.S. Financial Solutions business, primarily due to a single premium pension risk transfer transaction.
For the quarter, RGA has reported net income of $287 million compared with a loss of $76 million a year earlier. For the first nine months of 2023, net income reached $744 million, so up considerably on the gain of $226 million seen in the prior-year period.
Adjusted operating income also rose in both periods, from $16 million to $372 million for Q3, and from $615 million to over $1 billion for 9M 2023.
The asset side of the balance sheet also performed well, with RGA reporting that Q3 2023 investment income increased 15%, reflecting higher yields. The average investment yield also increased to 4.72% in the third quarter from 4.4% in the prior-year period due to higher yields.
Anna Manning, Chief Executive Officer, commented: “This was another strong quarter, with most regions and business lines performing very well. We continue to see very strong momentum in our new business activities and pipelines. Industry dynamics are favourable and we are well-positioned, with the capabilities and proven track record to benefit from all those dynamics.
“We are optimistic about our future and our ability to deliver attractive returns for our shareholders.”
