|
|
|
|
|||||
|
|
|
Reinsurance Group of America, Incorporated RGA reported third-quarter 2025 adjusted operating earnings of $6.37 per share, which beat the Zacks Consensus Estimate by 9.8%. Moreover, the bottom line increased 3.9% from the year-ago quarter’s figure.
Net foreign currency fluctuations had an adverse effect of 1 cent per diluted share on net income available to RGA shareholders, and a favorable effect of 4 cents per diluted share on adjusted operating income, both as compared with the prior year.
Reinsurance Group witnessed a solid performance in the Asia/Pacific, U.S. and Latin America and Canada segments, offset by the soft result in the Europe, Middle East and Africa (EMEA) and Corporate and Other segments.
Reinsurance Group of America, Incorporated price-consensus-eps-surprise-chart | Reinsurance Group of America, Incorporated Quote
RGA's operating revenues of $6.2 billion beat the Zacks Consensus Estimate by 0.9%. The top line also improved 8% year over year due to higher net investment income and other revenues.
Net premiums of $4.3 billion declined 2.5% year over year. Investment income increased 24% from the prior-year quarter to $1.5 billion. The average investment yield decreased to 4.73% in the third quarter from 5.08% in the prior-year period due to lower variable investment income.
Total benefits and expenses at Reinsurance Group increased 8.2% year over year to $5.9 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses and interest expense.
U.S. and Latin America: Total pre-tax adjusted operating income was $236 million in the quarter under discussion, which increased 48.4% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $136 million, which increased 72% year over year. Net premiums declined 1.5% from the year-ago quarter to $1.9 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 25% to $100 million, which reflected the earnings contribution from the Equitable transaction, which was closed in the third quarter, partially offset by lower variable investment income.
Canada: Total pre-tax adjusted operating income rose 47% year over year to $50 million.
The traditional segment’s pre-tax adjusted operating income increased 43% year over year to $43 million. Net premiums increased 3.8% to $326 million. Foreign currency exchange rates had an adverse effect on net premiums of $3 million for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 75% year over year to $7 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating loss was $52 million against the year-ago quarter’s adjusted operating income of $68 million.
Pre-tax adjusted operating loss of the traditional segment was $192 million, wider than the year-ago quarter’s loss of $18 million. Foreign currency exchange rates had an adverse effect of $7 million on adjusted operating income before taxes. Premiums increased 7.8% to $562 million in the quarter. Foreign currency exchange rates had a favorable effect on net premiums of $18 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 62.8% year over year to $140 million. Foreign currency exchange rates had a favorable effect of $5 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income was $209 million, which surged nearly threefold from the year-ago quarter.
The Traditional segment’s pre-tax adjusted operating income was $138 million, which skyrocketed more than 12-fold from the year-ago quarter. Foreign currency exchange rates had a favorable effect of $6 million on adjusted operating income before taxes.
The Financial Solutions segment’s pre-tax adjusted operating income increased 18.3% to $71 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes. Net premiums increased 48.3% to $92 million.
Corporate and Other: Pre-tax adjusted operating loss was $58 million, wider than the year-ago quarter’s loss of $18 million. The wider loss was primarily due to lower variable investment income and higher general expenses.
As of Sept. 30, 2025, the company had assets worth $152 billion, up 26.4% year over year.
As of Sept. 30, 2025, Reinsurance Group’s book value per share, excluding accumulated other comprehensive income, increased 6% year over year to $158.67.
The adjusted operating return on equity (excluding accumulated other comprehensive income) was 13.2%, which contracted 60 basis points year over year.
RGA deployed $1.7 billion into in-force block transactions, which include $1.5 billion deployed into the transaction with subsidiaries of Equitable Holdings, Inc.
Reinsurance Group repurchased shares of $75 million in the quarter.
The board of directors declared a quarterly dividend of 93 cents. Effective Oct. 28, 2025, the dividend will be paid out on Nov. 25 to shareholders of record as of Nov. 11.
Reinsurance Group currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prudential Financial, Inc. PRU reported third-quarter 2025 adjusted operating income of $4.26 per share, which beat the Zacks Consensus Estimate by 16.3%. The bottom line increased 28% year over year. Total revenues of $16.2 billion beat the Zacks Consensus Estimate by 16%. The top line, however, declined 16.6% year over year. The decrease in revenues was due to lower premiums.
Total benefits and expenses amounted to $14.3 billion, which declined 20.3% year over year in the third quarter. This decrease was due to lower insurance and annuity benefits and operating expenses. The figure was higher than our estimate of $12.4 billion.
Everest Group, Ltd.’s EG third-quarter 2025 operating income of $7.54 per share missed the Zacks Consensus Estimate by 43.7%. The bottom line decreased 48.4% year over year. Everest Group’s total operating revenues of $4.3 billion climbed 0.7% year over year on higher net investment income. The top line, however, missed the consensus mark by 2.9%.
EG’s gross written premiums declined 1.1% year over year to $4.4 billion. Our estimate was $4.8 billion. Net investment income was $540 million, which increased 8.8% year over year. Our estimate was $490.5 million. The Zacks Consensus Estimate was pegged at $511 million. Total claims and expenses rose 9.2% to $4 billion. Our estimate was $3.8 billion.
Principal Financial Group, Inc.’s PFG third-quarter 2025 operating net income of $2.10 per share missed the Zacks Consensus Estimate by 3.6%. Also, the bottom line increased 19% year over year. PFG’s operating revenues increased 6.2% year over year to $3.8 billion, driven by increased premiums and other considerations, fees, and other revenues and net investment income. The metric missed the Zacks Consensus Estimate by 4.1%.
Total expenses increased 3.8% year over year to $3.4 billion. The figure was lower than our estimate of $3.6 billion. As of Sept. 30, 2025, Principal Financial’s AUM amounted to $784.3 billion, which included $0.4 billion of net cash flow and assets under administration of $1.8 trillion. AUM improved 10.1% from 2024-end.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 6 hours | |
| 9 hours | |
| 13 hours | |
| 18 hours | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 | |
| Oct-30 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite