Reinsurance Group of America Incorporated Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Reinsurance Group of America Incorporated (NYSE:RGA) reported its results for the third 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 Third Quarter

Results: Net income for Reinsurance Group of America Incorporated rose to $147.4 million ($1.98 per share) vs. $128.2 million ($1.72 per share) in the same quarter a year earlier. This marks a rise of 14.9% from the year earlier quarter.

Revenue: Revenue was $1.99 billion last quarter.

Actual vs. Wall St. Expectations: RGA beat the mean analyst estimate of $1.89 per share. It fell short of the average revenue estimate of $2.22 billion.

Quoting Management: A. Greig Woodring, president and chief executive officer, commented, “Enterprise-wide claims experience was slightly elevated, most notably in our U.S. and Europe & South Africa segments. Nonetheless, that claims volatility was within our expected range. The S&P 500 index and benchmark interest rates were down during the third quarter and, as a result, our asset intensive business earned $1 million pre-tax operating income, well below its normalized quarterly run rate of $15 million to $16 million. However, for the first nine months of 2011, that business has generally performed as expected. Consolidated premium growth was slightly below our expectations for the quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 4.6% and in the first quarter, the figure rose 31.3%.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of $1.72 versus a mean estimate of net income of $1.82 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.90 a share to $1.82 over the last ninety days. At $7.06 per share, the average estimate for the fiscal year has fallen from $7.24 ninety days ago.

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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(Source: Xignite Financials)