RGA boosts FY results despite adverse currency, interest rate effects

Global life reinsurance provider Reinsurance Group of America (RGA) increased its 2016 full-year results despite negative currency and interest rate effects and plans for share repurchasing.

Net income totalled $701.4 million in 2016 compared to $502.2 million in 2015.

Net premiums increased 8 percent in 2016 to $9.25 billion despite net adverse foreign currency effects of approximately $172.2 million.

Anna Manning, president and chief executive officer, commented on the full-year results: “We achieved these strong results despite ongoing macroeconomic headwinds including lower interest rates and weak foreign currencies. In 2016, our return on equity was 10 percent and operating return on equity was 11 percent. Importantly, RGA's balance sheet remains strong.

“We executed a number of in-force and other transactions during the year, but the size of the deals on average was smaller than in recent years. We ended the year with an excess capital position of $1.1 billion and our board approved a new share repurchase authorization of $400 million, replacing the previous authorization. We are well positioned to continue to pursue a balanced approach to capital management in terms of deployment into in-force and other attractive transactions, share repurchases and shareholder dividend increases.

“Looking forward, we remain optimistic about our ability to serve clients, execute on our strategies and deliver attractive financial returns.”

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.