Reinsurance Group of America Earnings: Snaps Cold Streak with Profit Growth

Reinsurance Group of America Incorporated (NYSE:RGA) reported net income above Wall Street’s expectations for the second quarter. Reinsurance Group of America is an insurance holding company engaged in traditional individual and group life, asset-intensive, critical illness and financial reinsurance.

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Reinsurance Group of America Incorporated Earnings Cheat Sheet

Results: Net income for Reinsurance Group of America Incorporated rose to $141.1 million ($1.91 per share) vs. $123.9 million ($1.66 per share) in the same quarter a year earlier. This marks a rise of 13.9% from the year-earlier quarter.

Revenue: Rose 7.8% to $2.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Reinsurance Group of America Incorporated beat the mean analyst estimate of $1.78 per share. It beat the average revenue estimate of $2.26 billion.

Quoting Management: A. Greig Woodring, president and chief executive officer, commented, “We had a stable quarter in terms of operating results, with operating income rising to $122 million, or $1.65 per diluted share from $1.60 per diluted share in the second quarter of 2011. The current-period result includes headwinds associated with foreign currency fluctuations and a slightly higher effective tax rate, each of which adversely affected operating income per share by approximately $0.03.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 0.5% to $2.29 billion in the first quarter. The figure rose 3.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 2% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of $1.52 per share.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the third quarter has gone up from $1.86 per share to $1.91. For the fiscal year, the average estimate has moved up from $7 a share to $7.15 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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