Reinsurance Group of America Inc. Earnings: Profit Falls, Snapping Streak of Rising Profits

Reinsurance Group of America Incorporated (NYSE:RGA) reported its results for the fourth quarter. Reinsurance Group of America is an insurance holding company 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 Fourth Quarter

Results: Net income for the life insurance company fell to $158.5 million ($2.15 per share) vs. $196.7 million ($2.62 per share) a year earlier. This is a decline of 19.4% from the year earlier quarter.

Revenue: Revenue was $2.35 billion last quarter.

Actual vs. Wall St. Expectations: RGA reported adjusted net income of $1.91 per share. By that measure, the company beat the mean estimate of $1.84 per share. Analysts were expecting revenue of $2.31 billion.

Quoting Management: A. Greig Woodring, president and chief executive officer, commented, “Global claims experience was somewhat higher than our expectations for the quarter, reflecting higher-than-expected disability claims in Australia and U.S. group reinsurance, offset in part by strong results in most of our other markets. Our asset intensive business also performed well. Overall net premium growth was better-than-expected, and our book value per share continues to climb with consistent earnings contributions.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the third quarter, net income rose 14.9% from the year earlier, while the figure increased 4.6% in the second quarter, 31.3% in the first quarter and 75% in the fourth quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of $2.04 versus a mean estimate of net income of $1.87 per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.58 per share, up from $1.56 ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $7.18 per to share to $7.20.

Competitors to Watch: American Independence Corp. (NASDAQ:AMIC), Transatlantic Hldgs., Inc. (NYSE:TRH), PartnerRe Ltd. (NYSE:PRE), Everest Re Group, Ltd. (NYSE:RE).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com