Reinsurance Group of America Inc.
) reported fourth quarter 2012 operating earnings of $2.44 per
share, significantly ahead of the Zacks Consensus Estimate of
$1.80 per share. Earnings were also up by 48.8% on a
The earnings beat came on the back of lower-than-expected claims
incidence in the U.S. mortality business along with a strong
performance in both the U.S. Asset-Intensive line and Canada
For FY12 earnings per share was $6.96, pretty much ahead of the
Zacks Consensus Estimate of $6.32 per share. Full year earnings
also grew 6.3% year over year.
Total revenue increased 16% year over year to $2.72 billion, led
by increased net premiums, net investment income along with
investment related gains. Net premiums increased 7.1% year over
year to $2.2 billion.
Investment income surged 22% year over year to $370.2 million.
Total benefits and expenses soared 11.5% year over year to $2.40
billion, owing to an increase in claims and other policy
benefits, operating expenses as well as interest expense.
GENWORTH FINL (GNW): Free Stock Analysis
MANULIFE FINL (MFC): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
To read this article on Zacks.com click here.
Traditional sub-segment reported pre-tax operating income of
$139.6 million, up 69% year over year. Premiums improved 5% year
over year to $1.16 billion.
The Asset Intensive business reported pre-tax operating income of
$40.8 million, up 49.5% year over year. the results benefited
from favorable equity market performance and the addition of a
large block of fixed deferred annuities, effective April 1, 2012.
The U.S. Financial Reinsurance business continued to perform well
and reported operating income of $8.5 million, up 23% year over
segment's premium jumped 11% year over year to $248.4
million. Pre-tax operating income increased 33% year over
year to $54.0 million.
Europe & South Africa
segment recorded a 13% hike in premium to $402.5 million. Pre-tax
operating income was down to $14.3 million year over year,
primarily due to the higher-than-expected morbidity claims in the
segment reported a pre-tax operating income of $8.5 million, in
contrast to operating loss of $15.0 million in the prior-year
quarter. Premium was up by a 4.1% year over year to $362.6
The company announced it would pay its quarterly dividend of 24
cents per share on Mar 8, 2013.
While the company did not provide any specific earnings per share
outlook for FY13, it expects operating earnings to grow in the 5%
to 8% range, and operating return on equity of 11% to 12%, over
the medium term. It is also expecting to generate excess capital
of $200 million to $400 million.
Another company in the same industry
StanCorp Financial Group, Inc.
) reported fourth-quarter 2012 operating earnings of 89 cents per
share, which exceeded the Zacks Consensus Estimate by 6 cents.
Among others both
Genworth Financial Inc.
Manulife Financial Corp.
) carrying Zacks Rank #2 (Buy) are expected to release their
fourth quarter earnings shortly.
Reinsurance Group currently retains a Zacks Rank #3 (Hold).