Reinsurance Group reports Q1 adjusted EPS $6.02, consensus $4.55

Reports Q1 consolidated net premiums totaled $5.4B, an increase of 58.8% over the 2023 first quarter, with an adverse net foreign currency effect of $12M. Excluding the net foreign currency effect, consolidated net premiums increased 59.2% in the quarter. Net premiums for the quarter included a $1.9B contribution from a single premium pension risk transfer transaction in the U.S. Financial Solutions business. Compared with the year-ago period, excluding spread-based businesses, first quarter investment income increased 7.0%, primarily due to new business. Average investment yield was flat at 4.70% in the first quarter compared with 4.71% in the prior-year period due to higher new money rates offset by lower variable investment income in the first quarter, relative to the year-ago period. Tony Cheng, President and Chief Executive Officer, commented, “Our first quarter was excellent, and we are off to a great start for the year, following a very strong 2023. Our Traditional business performed very well and the Financial Solutions business also had a good quarter. On our in-force transactions, we had a record quarter of $737 million deployed, and we continued to see strong momentum in organic new business activity. Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $0.6 billion. Based on favorable business conditions and RGA‘s global leadership position, we are optimistic about the future and expect to continue to deliver attractive financial results over time.”