RGA Smashes Records with Record-Breaking Quarter: Strong Growth Across All Markets
Reinsurance Group of America (RGA) has smashed records in its fourth quarter 2024 earnings, delivering a standout performance across all markets. The company reported adjusted operating earnings of $4.99 per share, marking a record-breaking achievement for RGA.
In a call with investors and analysts, Tony Cheng, President and CEO, highlighted the strong momentum in organic business activity across all key markets worldwide. In-force transactions were solid at $250 million of capital deployed, while continued strong momentum was seen in new business activities.
RGA's ability to execute its balance sheet optimization strategy was once again showcased, with various in-force actions resulting in favorable near-term results and long-term financial benefits. These actions also reduced risk for the company, further demonstrating RGA's commitment to discipline in both risk management and capital deployment.
The strong quarterly performance capped off a great year for RGA, with the company delivering record operating earnings and many other achievements across its organization. In the full year 2024, RGA deployed just shy of $1.7 billion into transactions, far exceeding any other year in its history.
RGA's President and CEO, Tony Cheng, expressed confidence in the strong fundamentals of their business, citing a robust pipeline for future growth. The company has increased its intermediate-term operating return on equity (ROE) target to 13% to 15%, up from the previous 12% to 14%. This increase reflects RGA's faith in its strategic platform and ability to deliver sustainable business momentum.
RGA also reported notable growth in various areas, including Asia Traditional, U.S. Traditional, and PRT/longevity markets. In Mainland China, the company extended its strategy of reinsuring both asset and biometric sides of the balance sheet, generating a meaningful value uplift through four important transactions. These transactions helped clients improve their asset liability management profiles while optimizing RGA's own ALM profile.
In the U.S. Traditional market, new business activity remained strong in Q4 2024, with another good quarter following a very strong Q3. The company also closed a significant transaction with a key global client that included long-term care and a block of structured settlements at an attractive risk-return trade-off.
RGA's performance in the PRT and longevity market was highlighted by a small transaction completed in the U.S. market this quarter, further demonstrating the company's strength and expertise in these areas.
