Flu Shows Up in a Life Reinsurer's Earnings
RGA executives say this year's epidemic pushed up the number of life claims.
(Related: The Spanish Flu Centennial: A Look at Influenza’s Continuing Pandemic Risk)
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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.
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