Reinsurance Group Q3 Earnings Beat Estimates on Higher Revenues

Earnings Performance - Reinsurance Group of America (RGA) reported Q3 2024 adjusted operating earnings of $6.13 per share, beating the Zacks Consensus Estimate by 19% and increasing 10% year over year [1] - Net foreign currency fluctuations positively impacted adjusted operating income by 2 cents per share [1] - Operating revenues of $5.7 billion exceeded the Zacks Consensus Estimate by 13.8% and grew 8.5% year over year, driven by higher net premiums [2] Segment Performance - U.S. and Latin America: Pre-tax adjusted operating income decreased 33.4% year over year to $159 million, with the Traditional segment down 23% and Financial Solutions down 41% [5] - Canada: Pre-tax adjusted operating income decreased 15% year over year to $34 million, with the Traditional segment surging three-fold to $30 million [6] - EMEA: Pre-tax adjusted operating income increased 38.7% year over year to $68 million, despite a pre-tax adjusted operating loss of $18 million in the Traditional segment [7][8] - Asia/Pacific: Pre-tax adjusted operating income decreased 60% year over year to $71 million, with the Traditional segment plunging 92% [9] - Corporate and Other: Pre-tax adjusted operating loss narrowed to $18 million from $25 million in the year-ago quarter [10] Financial Metrics - Net premiums rose 3.2% year over year to $4.4 billion, while investment income increased 28.8% to $1.2 billion [3] - Total benefits and expenses increased 14% year over year to $5.4 billion, driven by higher claims, policy benefits, and other expenses [4] - Assets grew 37.5% year over year to $120.2 billion as of Sept. 30, 2024 [11] - Book value per share increased 5% year over year to $149.63, while adjusted operating return on equity contracted 90 basis points to 13.8% [11] Capital Deployment - RGA deployed $382 million into in-force block transactions [12] - The board declared a quarterly dividend of 89 cents, payable on Nov. 26, 2024 [12] Industry Comparison - Chubb Limited reported Q3 2024 core operating income of $5.72 per share, beating estimates by 16% and increasing 15.6% year over year [14] - Kinsale Capital Group delivered Q3 2024 net operating earnings of $4.20 per share, exceeding estimates by 13.5% and growing 26.9% year over year [16] - Selective Insurance Group reported Q3 2024 operating income of $1.40 per share, missing estimates by 17.1% and decreasing 7% year over year [18]