Reinsurance Group of America Inc.
) reported third quarter 2013 operating income of $2.14 per
share, significantly exceeding the Zacks Consensus Estimate of
$1.82 per share. In the year-ago quarter the company had
operating earnings of $1.35 per share. Results were helped by
higher revenues along with lower share count.
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Including capital losses, derivatives and other investment
related losses Reinsurance Group reported net loss of $1.93 per
share, compared with net income of $1.95 per share in the
Quarterly Operational Update
Total revenue of Reinsurance Group increased 6.4% year over year
to $2.47 billion in the reported quarter and was also above the
Zacks Consensus Estimate of $2.45 billion.
Total benefits and expenses of Reinsurance Group decreased 2.6%
year over year to $2.19 billion due to lower interest credited
claims and lower policy benefits, interest credited.
Quarterly Segment Update
: Pre-tax operating income in the Traditional U.S. sub-segment
was $84.8 million, up 20.1% year over year. Net premiums
increased 6.0% year over year to $1.11 billion.
Improved performance in the equity-indexed and fixed annuity
businesses led to an increase in pretax operating income in the
U.S. Asset-Intensive business which was $38.0 up 40% year over
Pretax operating income in the U.S. Financial Reinsurance
business was $11.5 million, up 39.0% year over year.
: Pre-tax operating income was $36.0 million, up 28.0% year over
year. Net premiums increased 4% year over year to $236.1 million.
Asia Pacific Operations
: Pre-tax operating income was $12.6 million in contrast with
operating loss of $16.5 million in the prior year quarter. Net
premiums increased 4% year over year to $343.1 million.
Europe & South Africa Operations
: Higher fee income in Continental Europe and favorable mortality
and morbidity claims experience in the U.K. drove an increase in
pre-tax operating earnings to $40.2 million which was up 60.2%
year over year. Net premiums increased 9.0% year over year to
As of Sep 30, 2013, Reinsurance Group had assets worth $39.53
billion, down 1.0% year over year.
As of Sep 30, 2013, book value per share of Reinsurance Group was
$67.98, up 9.6% year over year.
Reinsurance Group declared a regular quarterly dividend of 30
cents per share to be paid on Nov 29, 2013.
Results reflected favorable performance from all the segments
across the company. Going forward we expect share repurchase to
aid bottom-line results.
Reinsurance Group retains a Zacks Rank #3 (Hold).
Other stocks such as
StanCorp Financial Group Inc.
) with Zacks Rank#1 (Strong Buy), reported third quarter earnings
ahead of the Zacks Consensus Estimates, while
Lincoln National Corp.
Sun Life Financial Inc.
) both with Zacks Rank #2 (Buy) are expected to release
third quarter earnings on Oct 30 and Nov 7, respectively.