How bad was this year’s flu season?
Bad enough to hurt a major life reinsurer’s earnings.
Reinsurance Group of America Inc. is reporting $100 million in net income for the first quarter on $3.2 billion in revenue, compared with $146 million in net income on $3 billion in revenue for the first quarter of 2017.
The RGA unit that provides traditional reinsurance in the United States and Latin America, but not in Canada, is reporting $2.9 million in income before income taxes for the quarter on $1.5 billion in revenue, compared with $30 million in income before taxes on $1.5 billion in revenue for the year-earlier quarter.
RGA said the harsh flu season in the United States and Latin America contributed to the drop in overall net income, by increasing the number of non-large death claims.
Anna Manning, president of the Chesterfield, Missouri-based company, said flu often causes fluctuations in claims during the first quarter of the year.
“Any volatility tends to even out over longer periods,” Manning said.
— Read What If Annuity Holders’ Life Expectancy Spikes? on ThinkAdvisor.