RGA’s US group business ‘disappoints’ in Q2
While the US individual mortality business bounced back in the second quarter of 2018, the US group business of life reinsurer RGA disappointed, according to CEO Anna Manning.
“Our US individual mortality business bounced back this quarter as mortality experience was in line with our expectations, while both EMEA and Asia performed very well overall,” Manning said. “However, we did have disappointing results from parts of our US group business, and we will continue to take rate action in select areas as appropriate,” she added.
The US and Latin America traditional segment reported pre-tax income of $72.0 million, compared with $90.6 million in the second quarter of 2017. The year-ago period already reflected favourable morality experience, offset by unfavourable group experience.
Traditional net premiums in the region were up 3 percent year on year in the second quarter at $1.37 billion.
At the same time, the EMEA financial solutions business segment, which consists of longevity, asset-intensive and fee-based transactions, reported second-quarter pre-tax income of $65.4 million, compared with $28.9 million in the year-ago period.
The Asia Pacific traditional segment's pre-tax income and pre-tax adjusted operating income increased to $58.9 million, up from $53.3 million in the prior-year period, due to favourable underwriting experience in Asia, and a break-even result in Australia.
Overall, RGA reported second-quarter 2018 net income of $204.4 million, down from $232.2 million in the same period a year ago.
Group net premiums increased to $2.59 billion from $2.48 billion over the period.
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