Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 18th of July 2018
January 28, 2009

RGA Q4 profits down 85%

by David Masters

Story link: RGA Q4 profits down 85%

Reinsurance Group of America (RGA) has posted its fourth quarter results, with profits down 85% on year despite an increase in operating income.

Fourth quarter profits were $9.4 million, or $0.14 per share, compared to $63.6 million, or $0.99 per share in the year ago period.

Operating income rose 9.6% to $100.0 million, or $1.45 per share, up from $91.2 million or $1.42 per share for the same period in 2007. This rise was attributed to improved Canadian and international operations.

Weaker foreign currencies negatively affected the 2008 results by approximately $0.16 per share.

Total revenues dropped to $1.368 billion from $1.497 billion in the prior year quarter, despite an 11% on year increase in premiums for the quarter.

President and CEO Greig Woodring said: “Overall, we are pleased with the quarter and full-year results given the turmoil in worldwide financial markets, the relative dilution in earnings per share until we can deploy proceeds from our recent stock offering, and the impact of the relative depreciation in several major foreign currencies, notably the Canadian dollar, Australian dollar and British pound sterling.”

The board of directors declared a regular quarterly dividend of $0.09, payable February 26 to shareholders of record as of February 5.


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