Financial Overview

Financial Overview

  • Todd Larson

    RGA provided financial security for our clients and their policyholders in a time of crisis, all while maintaining and strengthening our enterprise’s sound business fundamentals.

    Todd Larson

    Senior Executive Vice President and Chief Financial Officer

In a year that presented many financial hurdles, RGA’s established strategy and diversified global platform enabled us to remain profitable and well-positioned for long-term growth. In 2020, RGA absorbed an estimated $720 million in claim costs related to COVID-19 yet generated $415 million in net income. More importantly, we provided financial security for our clients and their policyholders in a time of crisis, all while maintaining and strengthening our enterprise’s sound business fundamentals.

Strategic diversification by region, product line, and risk again proved advantageous, demonstrating resilience amid historic market disruptions and pandemic-driven headwinds. The negative financial impact of COVID-19 in some segments, particularly individual mortality business, was partially offset by strong results in other areas, including Global Financial Solutions, Asia Pacific operations, and U.S. group and individual health product lines. In short, the overall performance of our balanced portfolio of businesses validated our strategic approach.

Amid worldwide economic volatility and an uncertain industry environment, RGA continued to be a source of stability for our clients.

To bolster our strong balance sheet, RGA executed a successful $500 million public stock offering in June. This proactive measure increased capital buffers to ensure RGA remained a strong counterparty to our clients. After deploying approximately $160 million into in-force and other transactions in 2020, RGA ended the year with an excess capital position of approximately $1.3 billion.

Before COVID-19, insurers already faced a range of significant challenges in the macroeconomic environment, including persistent low interest rates, new regulatory requirements, and pending changes to accounting standards. The pandemic and its related demands have increased and amplified the pressures placed on insurance companies. After a year in which both RGA and the life and health insurance industry proved responsive, reliable, and resilient, we are optimistic about the future. Through adversity, we have strengthened relationships with our client partners and together are well-positioned to take advantage of the many opportunities that lie ahead.

  • Selected Consolidated Financial and Operating Data 2016-2020

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Proven strategy produces positive financial results

Net Premiums

(in billions USD)

11.7B
Total Revenues

(in billions USD)

14.6B
Total Assets

(in billions USD)

84.7B

* The estimated impact of the U.S. Tax Cuts and Jobs Act of 2017 was recognized in the fourth quarter of 2017, increasing net income and total stockholders’ equity by approximately $1.0 billion, or $15.72 per diluted share. ** Net income in 2020 reflects the negative pre-tax impact of approximately $720 million in COVID-19-related claim costs.

Financial Strength Ratings

RGA Reinsurance Company, RGA’s U.S.-based operating subsidiary, receives high ratings for its claims-paying ability based on the company’s financial condition and earnings. Its ratings as of December 31, 2020:

  • S&P Global Ratings
    AA-

    Very Strong

  • A.M. Best Company
    A+

    Superior

  • Moody’s Investor’s Service
    A1

    Good

RGA Americas Reinsurance Company, Ltd., RGA Life Reinsurance Company of Canada, RGA Global Reinsurance Company, Ltd., RGA International Reinsurance Company dac, RGA Reinsurance Company of Australia Limited, and RGA Reinsurance Company (Barbados) Ltd. each have a financial strength rating of AA- from S&P Global Ratings. Omnilife Insurance Company Limited has a financial strength rating of A+ from S&P Global Ratings. RGA Americas Reinsurance Company, Ltd., RGA Life Reinsurance Company of Canada, and RGA Atlantic Reinsurance Company Ltd. each have a financial strength rating of A+ from A.M. Best Company.

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