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Reinsurance Group (RGA) Q1 Earnings Top Estimates, Rise Y/Y
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Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2022 adjusted operating earnings of 47 cents per share against the Zacks Consensus Estimate of a loss of 61 cents. In the year-ago quarter, RGA had reported a loss of $1.24 per share.
Net foreign currency fluctuations had an immaterial effect on adjusted operating income.
Reinsurance Group witnessed solid performance in the Asia/Pacific, U.S. and Latin America and Europe, Middle East and Africa (EMEA) segments, offset by soft results in Canada.
Reinsurance Group's operating revenues of $4 billion beat the Zacks Consensus Estimate by 2.7%. The top line also improved 6.3% year over year.
Net premiums of $3.1 billion rose 8.3% year over year. Investment income, net of related expenses, decreased 0.2% from the prior-year quarter to $810 million. The average investment yield was down 38 basis points to 5.29%.
Total benefits and expenses at Reinsurance Group increased 1.4% year over year to $3.9 billion on higher claims and other policy benefits, policy acquisition costs and other insurance expenses and other operating expenses.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
U.S. and Latin America: Total pre-tax loss was $82 million in the quarter, narrower than a pre-tax loss of $272 million in the year-ago quarter.
The Traditional segment reported a pre-tax adjusted operating loss of $181 million, narrower than the year-ago loss of $344 million. Results reflected nearly $272 million of COVID-19 claim costs, of which $260 million was related to individual mortality. Net premiums rose 8.6% from the year-ago quarter to $1.5 billion.
The Asset Intensive segment’s pre-tax adjusted operating income improved about 53.1% to $75 million. The Capital Solutions business reported pre-tax adjusted operating income of $24 million, up 4.3% year over year.
Canada: Total pre-tax income decreased 37.9% to $18 million.
The traditional segment’s pre-tax adjusted operating income decreased 78.3% year over year to $5 million. The results reflected unfavorable individual life experience, due to nearly $20 million of COVID-19 claim costs, as well as excess mortality claims that were driven by higher large claims. Net premiums increased 8.6% to $304 million.
The financial Solutions segment’s pre-tax adjusted operating income doubled year over year to $13 million, attributable to favorable longevity experience.
Europe, Middle East and Africa (EMEA): Total pre-tax income was $73 million against the prior-year quarter’s loss of $26 million.
Pre-tax adjusted operating loss of the traditional segment was $6 million narrower than the pre-tax adjusted operating loss of $68 million in the year-ago quarter, reflecting a moderate level of COVID-19 claims of $10 million and higher non-COVID-19 large claims in the U.K. Premiums increased 2.9% to $451 million in the quarter. Foreign currency exchange rates had an adverse effect of $16 million on net premiums.
The Financial Solutions segment delivered pre-tax adjusted operating income of $79 million, up 88.1% from the year-ago quarter, reflecting business growth and favorable longevity experience.
Asia/Pacific: Total pre-tax income of $72 million increased 20% from the prior-year quarter.
The Traditional segment’s pre-tax adjusted operating income of $51 million was up 24.4%, attributable to favorable overall underwriting experience in Asia and a profit in Australia. Premiums increased 6.7% to $650 million. Foreign currency exchange rates had an adverse effect of $23 million on net premiums.
The Financial Solutions segment’s pre-tax adjusted operating income increased 10.5% to $21 million. Net premiums decreased 18.9% to $43 million.
Corporate and Other: Pre-tax adjusted operating loss was $22 million against the year-ago income of $94 million in the prior-year period.
Financial Update
As of Mar 31, 2022, Reinsurance Group had assets worth $89.7 billion, up 5.8% from the level at 2021 end.
As of Mar 31, 2022, Reinsurance Group’s book value per share, excluding accumulated other comprehensive income, increased 3.1% year over year to $137.89.
The adjusted return on equity was 2.1%. Reinsurance Group exited the quarter with $1 billion in excess capital.
Capital Deployment
The board of directors approved a dividend of 73 cents per share to be paid out on May 31 to shareholders of record as of May 17.
On Feb 25, 2022, the board authorized a share repurchase program for up to $400 million of shares.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2022 adjusted operating earnings of $1.47 per share, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line increased 42.7% year over year.
Total revenues amounted to $1.5 billion against ($2 billion) in the year-ago quarter. Net investment income declined 11.7% year over year to $630 million. Meanwhile, fee income of $433 million decreased 5.4% year over year. Premiums totaled $613 million versus ($5 billion) in the year-ago quarter. Total expenses were $1.4 billion versus a benefit of $3 million in the year-ago quarter. As of Dec 31, 2021, VOYA’s assets under management and assets under administration & advisement totaled $707.3 billion.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2022 adjusted earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.97. Also, the bottom line declined from the prior-year figure of $1.82 per share.
Adjusted operating revenues decreased to $4,718 million in the first quarter from $4,762 million a year ago. Also, it missed the consensus mark of $4,768 million.
Aon plc (AON - Free Report) reported first-quarter 2022 operating earnings of $4.83 per share, which missed the Zacks Consensus Estimate of $4.86. However, the bottom line climbed 13% year over year.
Total revenues improved 4% year over year to $3,670 million, which comprised organic revenue growth of 8%, partially offset by a 1% unfavorable impact from divestitures and a 3% unfavorable impact from foreign currency translation. The top line missed the consensus mark of $3,747 million.
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Reinsurance Group (RGA) Q1 Earnings Top Estimates, Rise Y/Y
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2022 adjusted operating earnings of 47 cents per share against the Zacks Consensus Estimate of a loss of 61 cents. In the year-ago quarter, RGA had reported a loss of $1.24 per share.
Net foreign currency fluctuations had an immaterial effect on adjusted operating income.
Reinsurance Group witnessed solid performance in the Asia/Pacific, U.S. and Latin America and Europe, Middle East and Africa (EMEA) segments, offset by soft results in Canada.
Reinsurance Group's operating revenues of $4 billion beat the Zacks Consensus Estimate by 2.7%. The top line also improved 6.3% year over year.
Net premiums of $3.1 billion rose 8.3% year over year. Investment income, net of related expenses, decreased 0.2% from the prior-year quarter to $810 million. The average investment yield was down 38 basis points to 5.29%.
Total benefits and expenses at Reinsurance Group increased 1.4% year over year to $3.9 billion on higher claims and other policy benefits, policy acquisition costs and other insurance expenses and other operating expenses.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
Reinsurance Group of America, Incorporated price-consensus-eps-surprise-chart | Reinsurance Group of America, Incorporated Quote
Quarterly Segment Update
U.S. and Latin America: Total pre-tax loss was $82 million in the quarter, narrower than a pre-tax loss of $272 million in the year-ago quarter.
The Traditional segment reported a pre-tax adjusted operating loss of $181 million, narrower than the year-ago loss of $344 million. Results reflected nearly $272 million of COVID-19 claim costs, of which $260 million was related to individual mortality. Net premiums rose 8.6% from the year-ago quarter to $1.5 billion.
The Asset Intensive segment’s pre-tax adjusted operating income improved about 53.1% to $75 million. The Capital Solutions business reported pre-tax adjusted operating income of $24 million, up 4.3% year over year.
Canada: Total pre-tax income decreased 37.9% to $18 million.
The traditional segment’s pre-tax adjusted operating income decreased 78.3% year over year to $5 million. The results reflected unfavorable individual life experience, due to nearly $20 million of COVID-19 claim costs, as well as excess mortality claims that were driven by higher large claims. Net premiums increased 8.6% to $304 million.
The financial Solutions segment’s pre-tax adjusted operating income doubled year over year to $13 million, attributable to favorable longevity experience.
Europe, Middle East and Africa (EMEA): Total pre-tax income was $73 million against the prior-year quarter’s loss of $26 million.
Pre-tax adjusted operating loss of the traditional segment was $6 million narrower than the pre-tax adjusted operating loss of $68 million in the year-ago quarter, reflecting a moderate level of COVID-19 claims of $10 million and higher non-COVID-19 large claims in the U.K. Premiums increased 2.9% to $451 million in the quarter. Foreign currency exchange rates had an adverse effect of $16 million on net premiums.
The Financial Solutions segment delivered pre-tax adjusted operating income of $79 million, up 88.1% from the year-ago quarter, reflecting business growth and favorable longevity experience.
Asia/Pacific: Total pre-tax income of $72 million increased 20% from the prior-year quarter.
The Traditional segment’s pre-tax adjusted operating income of $51 million was up 24.4%, attributable to favorable overall underwriting experience in Asia and a profit in Australia. Premiums increased 6.7% to $650 million. Foreign currency exchange rates had an adverse effect of $23 million on net premiums.
The Financial Solutions segment’s pre-tax adjusted operating income increased 10.5% to $21 million. Net premiums decreased 18.9% to $43 million.
Corporate and Other: Pre-tax adjusted operating loss was $22 million against the year-ago income of $94 million in the prior-year period.
Financial Update
As of Mar 31, 2022, Reinsurance Group had assets worth $89.7 billion, up 5.8% from the level at 2021 end.
As of Mar 31, 2022, Reinsurance Group’s book value per share, excluding accumulated other comprehensive income, increased 3.1% year over year to $137.89.
The adjusted return on equity was 2.1%. Reinsurance Group exited the quarter with $1 billion in excess capital.
Capital Deployment
The board of directors approved a dividend of 73 cents per share to be paid out on May 31 to shareholders of record as of May 17.
On Feb 25, 2022, the board authorized a share repurchase program for up to $400 million of shares.
Zacks Rank
Reinsurance Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2022 adjusted operating earnings of $1.47 per share, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line increased 42.7% year over year.
Total revenues amounted to $1.5 billion against ($2 billion) in the year-ago quarter. Net investment income declined 11.7% year over year to $630 million. Meanwhile, fee income of $433 million decreased 5.4% year over year. Premiums totaled $613 million versus ($5 billion) in the year-ago quarter. Total expenses were $1.4 billion versus a benefit of $3 million in the year-ago quarter. As of Dec 31, 2021, VOYA’s assets under management and assets under administration & advisement totaled $707.3 billion.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2022 adjusted earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.97. Also, the bottom line declined from the prior-year figure of $1.82 per share.
Adjusted operating revenues decreased to $4,718 million in the first quarter from $4,762 million a year ago. Also, it missed the consensus mark of $4,768 million.
Aon plc (AON - Free Report) reported first-quarter 2022 operating earnings of $4.83 per share, which missed the Zacks Consensus Estimate of $4.86. However, the bottom line climbed 13% year over year.
Total revenues improved 4% year over year to $3,670 million, which comprised organic revenue growth of 8%, partially offset by a 1% unfavorable impact from divestitures and a 3% unfavorable impact from foreign currency translation. The top line missed the consensus mark of $3,747 million.