Currency fluctuations boost results
US based life reinsurer Reinsurance Group of America (RGA) made a net profit of $574.4m for the full year 2010, up 41% on the $407.1m it made in 2009.
Net premiums for the year were up $934.5 million, or 16%, to $6.7bn from $5.7bn.
Operating income for 2010 was $504m, or $6.75 a share, up 15% from 2009’s operating profit of $438.3m, or $5.98 a share.
RGA said foreign currency fluctuations benefited 2010 operating income per share by $0.16. In particular, Canadian dollar appreciation versus the US dollar increased consolidated after-tax operating income by $7.6 million, or $0.10 per diluted share, for the year.
Fourth quarter 2010 net income was $196.7m, up 75% from the £112.4mRGA made in the same period of 2009.
Return on equity was 16% for the fourth quarter alone and 13% for the full year.
“RGA is well capitalized and we continually evaluate business opportunities and capital management strategies while aiming to provide optimal long-term value to our shareholders,” said RGA chief executive Greig Woodring in a statement. “We are well-positioned in all major life reinsurance markets and continue to strive to meet our clients' needs across the globe."