Reinsurance Group of America Earnings: Huge Jump in Net Income

Reinsurance Group of America, Incorporated (NASDAQ:RGA) reported net income above Wall Street’s expectations for the first quarter. Reinsurance Group of America is an insurance holding company, which is engaged in traditional individual and group life, asset-intensive, critical illness and financial reinsurance.

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Reinsurance Group of America, Incorporated Earnings Cheat Sheet for the First Quarter

Results: Net income for Reinsurance Group of America, Incorporated rose to $160.8 million ($2.18/share) vs. $122.4 million ($1.64/share) in the same quarter a year earlier. A rise of 31.3% from the year earlier quarter.

Revenue: Revenue was $2.28 billion last quarter.

Actual vs. Wall St. Expectations: RGA beat the mean analyst estimate of $1.57/share. Estimates ranged from $1.50 per share to $1.65 per share.

Quoting Management: A. Greig Woodring, president and chief executive officer, commented, “RGA’s first quarter of 2011 was eventful on several fronts as it included capital refinement activity, natural disasters in the Asia Pacific region and RGA’s first investor day conference. As outlined at that conference, we executed several capital refinement strategies, including redeeming a convertible security and purchasing 5.5 million shares, which collectively lowered shareholders’ equity by approximately $178 million and our diluted share count by roughly 1.9 million shares. Our capital and liquidity positions remain strong, and our investment portfolio is appropriately positioned.”

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 75% and in the third quarter of the last fiscal year, the figure rose 8.5%.

Competitors to Watch: Principal Financial Group (NYSE:PFG), AFLAC (NYSE:AFL), CIGNA (NYSE:CI), WellPoint (NYSE:WLP), Humana (NYSE:HUM), Universal American (NYSE:UAM), Transatlantic Hldgs., Inc. (NYSE:TRH), PartnerRe Ltd. (NYSE:PRE) American International Group (NYSE:AIG) and Everest Re Group, Ltd. (NYSE:RE).

Today’s Performance: Shares of RGA are unchanged in after hours trading.


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