Reinsurance Group of America Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for 2014; Declares Regular Quarterly Dividend, Payable March 7, 2014
January 30, 2014 at 10:00 pm
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Reinsurance Group of America Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported GAAP net income of $144,959,000 compared to $222,989,000 a year ago. Operating income was $154,509,000 compared to $181,830,000 a year ago. Income before income taxes was $229,490,000 compared to $321,089,000 a year ago. Pre-tax operating income was $244,408,000 compared to $258,670,000 a year ago. Diluted earnings from operating income was $2.17 per share compared to $2.44 per share a year ago. Diluted earnings was $2.03 per share compared to $3.00 per share a year ago. Net premiums were $2,212,998,000 compared to $2,179,707,000 a year ago. Total revenues were $2,736,794,000 compared to $2,723,102,000 a year ago. Pre-tax operating income totaled $14 million for the quarter with strong operating performances in Spain and Italy, reflecting typical claims volatility.
For the year, the company reported GAAP net income of $418,837,000 compared to $631,893,000 a year ago. Operating income was $358,446,000 compared to $516,382,000 a year ago. Income before income taxes was $635,254,000 compared to $919,223,000 a year ago. Pre-tax operating income was $544,623,000 compared to $746,032,000 a year ago. Diluted earnings from operating income was $4.95 per share compared to $6.96 per share a year ago. Diluted earnings was $5.78 per share compared to $8.52 per share a year ago. Net premiums were $8,254,027,000 compared to $7,906,596,000 a year ago. Total revenues were $10,318,353,000 compared to $9,840,911,000 a year ago. Book value outstanding as on December 31, 2013 was $83.87 per share compared to $93.47 per share a year ago.
The company provided earnings guidance for the year 2014. Over the intermediate term, the company targets operating earnings growth in the 5% to 8% range, and operating return on equity of 11% to 12%. These targets presume no significant changes in the investment environment and the deployment of $200 million to $400 million of excess capital, on average, annually. The company expects an intermediate effective tax rate of 34% to 35% reflecting, in part, a slight shift in earnings contribution from lower tax rate jurisdictions. The company still expect this business to produce $35 million to $40 million in pre-tax operating income per quarter. The continuing low interest rate environment is expected to have an adverse effect of about $0.10 per share in 2014 versus 2013.
The board of directors declared a regular quarterly dividend of $0.30 per share, payable March 7, 2014 to shareholders of record as of February 14, 2014.
Reinsurance Group of America, Incorporated is an insurance holding company. The Company is a provider of traditional life and health reinsurance and financial solutions. The Company has four segments. The U.S. and Latin America Traditional segment provides individual and group life and health reinsurance, including long-term care, to domestic clients for a variety of products. The Canada Traditional segment is primarily engaged in individual life reinsurance, and to a lesser extent creditor, group life and health, critical illness and disability reinsurance. The Europe, Middle East and Africa Traditional segment provides individual and group life and health products through yearly renewable term and coinsurance agreements, reinsurance of critical illness coverage. The Asia Pacific Traditional segment provides individual and group life and health reinsurance, critical illness coverage, disability and superannuation through yearly renewable term and coinsurance agreements.
Reinsurance Group of America Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for 2014; Declares Regular Quarterly Dividend, Payable March 7, 2014