Reinsurance Group of America Full Year 2024 Earnings: Misses Expectations

Reinsurance Group of America (NYSE:RGA) Full Year 2024 Results

Key Financial Results

• Revenue: US$22.1b (up 19% from FY 2023).
• Net income: US$717.0m (down 21% from FY 2023).
• Profit margin: 3.2% (down from 4.9% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: US$10.90 (down from US$13.61 in FY 2023).

RGA Profitability Indicators

• Combined ratio: 104.0% (down from 106.0% in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Reinsurance Group of America Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 21%.

The primary driver behind last 12 months revenue was the U.S. and Latin America - Traditional segment contributing a total revenue of US$8.43b (38% of total revenue). Notably, cost of sales worth US$19.6b amounted to 88% of total revenue thereby underscoring the impact on earnings.Explore how RGA's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Insurance industry in the US.

Performance of the American Insurance industry.

The company's shares are down 5.2% from a week ago.

Risk Analysis

It is worth noting though that we have found 1 warning sign for Reinsurance Group of America that you need to take into consideration.

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