Reinsurance Group of America (NYSE:RGA) saw higher-than-expected U.S. reinsurance claims during the third quarter, lingering low interest rates, and plenty of deal proposals.
A. Greig Woodring, the president of RGA, and other RGA executives talked about those trends today during a call with analysts.
RGA is reporting $144 million in net income for the third quarter on $1.9 billion in revenue, compared with $135 million in net income on $1.8 billion in revenue for the third quarter of 2011.
Individual and group disability insurance operations in Australia did worse than expected, and
Premiums at the “U.S. traditional” division, which handles reinsurance of products other than annuities, saw premiums increase to $1 billion, from $971 million, and operating income before income taxes fall to $73 million, from $80 million.
The claims ratio rose to 87.7 percent, from 86.9 percent.
The U.S. business involves short-term contracts, and RGA should be able to adjust prices to reflect changes in claims, executives said.