NYSE$RGA

Reinsurance Group America Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

RGA reported strong third quarter results with positive contributions from a range of segments and businesses.

Reinsurance Group of America reported a net income available to RGA shareholders of $284 million, or $4.19 per diluted share, and adjusted operating income of $352 million, or $5.20 per diluted share. Premium growth was 4.9% over the prior-year quarter, or 10.1% on a constant currency basis. The company deployed $100 million of capital into transactions and returned $79 million to shareholders.

  • Net income available to RGA shareholders was $4.19 per diluted share.
  • Adjusted operating income was $5.20 per diluted share.
  • Premium growth was 4.9% over the prior-year quarter, 10.1% on a constant currency basis.
  • Capital of $100 million was deployed into transactions.

Headline financials

Total Revenue

$4.07B

Previous: $4.04B+0.6%
EPS (adj)

$5.20

Previous: -$1.11+568.5%
Capital Expenditures

-$19M

Previous: -$15M-26.7%
Free Cash Flow

$265M

Previous: -$37M+816.2%
Net Income

$284M

Previous: -$22M+1390.9%
Operating Income

$780M

Previous: $308M+153.2%
Gross Profit

$1.06B

Previous: $577M+84.1%
Cash & Equivalents

$3.51B

Previous: $3.03B+16.0%
Total Assets

$82.7B

Previous: $91.4B-9.6%

Revenue & EPS history

RGA · Revenue · Quarterly

$4.07B

Q3 2022+0.6%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The underlying protection markets are active, organic new business activity is healthy, in-force transactions pipelines are very robust, and RGA is better positioned to deliver valuable solutions to its clients than ever before.

Tailwinds

  • Positive contributions from a range of segments and businesses.
  • Premium growth on a constant currency basis was 10.1%.
  • Another active and successful quarter for in-force transactions, deploying $100 million of capital.
  • COVID-19 claim costs were comfortably absorbed.
  • Underlying non-COVID-19 mortality was favorable in many markets.

Headwinds

  • Global estimated COVID-19 impacts of approximately $89 million on a pre-tax basis, or $1.00 per diluted share.
  • Net foreign currency fluctuations had an adverse effect of $0.15 per diluted share on adjusted operating income as compared with the prior year.
  • Excluding spread-based businesses, third quarter investment income decreased 7.7%, reflecting lower variable investment income in the quarter.
  • Average investment yield decreased to 4.40% in the third quarter due to lower variable investment income compared with 4.95% in the prior year.
  • Third quarter pre-tax adjusted operating loss was unfavorable as compared to the quarterly average run rate, primarily due to higher general expenses and interest expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

51%

34 / 67 earnings

Positive

+11.5%

Q2 2020

Best reaction

-13.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-2.5%-3.9%
Q4 2025+9.4%+7.1%+0.6%
Q3 2025-3.9%-0.9%+0.5%
Q1 2025+5.7%+6.6%+8.7%
Q4 2024-9.6%-13.6%-17.3%
Q3 2024+0.1%-0.9%+6.3%
Q2 2024-8.5%-12.4%-2.1%
Q1 2024+5.6%+6.4%+9.9%
Q4 2023-3.9%-4.0%+1.5%
Q3 2023+2.4%+4.4%+10.1%
Q2 2023-1.5%-1.9%-2.5%
Q1 2023+5.3%+6.7%+5.2%
Q4 2022-6.5%-2.1%-3.5%
Q3 2022-0.3%-0.2%+0.7%
Q2 2022+6.6%+7.7%+7.6%
Q1 2022+7.1%+4.6%+11.3%
Q4 2021-1.7%+2.2%-9.4%
Q3 2021-9.3%-9.0%-18.0%
Q2 2021+5.4%+9.6%+6.5%
Q1 2021-4.4%-3.7%-2.6%
Q4 2020+3.7%+3.2%+18.5%
Q3 2020+4.9%+15.8%+21.9%
Q2 2020+11.5%+8.1%+11.1%
Q1 2020-13.6%-5.9%-3.7%
Q4 2019-3.9%-5.3%-15.5%
Q3 2019+0.1%+2.8%+2.0%
Q2 2019-5.7%-7.1%-7.8%
Q1 2019+0.7%+0.2%-0.8%
Q4 2018-4.1%-2.6%-3.3%
Q3 2018+6.6%+9.4%+14.0%
Q2 2018-1.4%+1.9%+3.3%
Q1 2018-0.5%-2.4%-4.3%
Q4 2017-0.8%-3.6%-4.7%
Q3 2017+6.0%+4.0%+10.4%
Q2 2017+3.7%+5.0%+1.9%
Q1 2017-4.2%-2.6%-3.7%
Q4 2016-0.2%+1.1%+5.2%
Q3 2016+1.0%-0.1%+13.5%
Q2 2016+3.5%+3.0%+9.1%
Q1 2016-1.8%
Q4 2015-1.3%
Q3 2015-7.0%
Q2 2015-0.2%
Q1 2015-1.7%
Q4 2014+3.2%
Q3 2014+2.9%
Q2 2014+1.7%
Q1 2014-4.5%
Q4 2011+2.4%
Q4 2013+2.0%
Q3 2013+2.2%
Q2 2013-6.1%
Q1 2013+1.6%
Q4 2012+2.7%
Q3 2012-9.0%
Q2 2012-0.7%
Q1 2012+0.8%
Q3 2011+1.9%
Q2 2011-7.0%
Q1 2010-1.1%
Q1 2011+1.1%
Q4 2009-0.3%
Q4 2010-0.3%
Q3 2009+2.2%
Q3 2010+2.2%
Q2 2010+1.5%
Q2 2009+1.5%

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