RGA reports Q3 2014 financials

Reinsurance Group of America, Incorporated reported operating income of USD159.8 million, or USD2.31 per diluted share, compared with USD152.9 million, or USD2.14 per diluted share, in the prior-year quarter. Net income totalled USD158.0 million, or USD2.28 per diluted share, compared with USD138.0 million, or USD1.93 per diluted share, in the prior-year quarter.

Consolidated net premiums increased seven percent to USD2.2 billion with foreign currency fluctuations in the aggregate not having a material effect. Investment income rose 21 percent to USD447.1 million from USD369.4 million in the year-earlier quarter, benefitting from a USD35.9 million increase in the fair value of options contracts underlying equity-indexed annuities.

Excluding spread-based businesses and the value of associated derivatives, investment income increased 13 percent over year-ago levels, including the effects of certain commercial mortgage loan prepayments and a growing average invested asset base. The average investment yield was up five basis points to 4.80 percent over a year ago.