An executive at Reinsurance Group of America Inc. said today that investment losses, and concerns about investment losses, nibbled at earnings in the fourth quarter.
RGA’s investment portfolio performed well, overall, but the company lost about $25 million on the sale of its investments in GE, and it lost about $15 million of the value of a $65 million stake in Pacific Gas and Electric Company, Todd Larson, the company’s chief financial officer, said during a teleconference with securities analysts.
Changes in the value of the embedded derivatives in some coinsurance arrangements were also a negative, Larson said.
Reserves on annuities with guaranteed minimum living benefits increased, “but that was offset pretty much by hedging derivatives,” Larson said.
RGA held the conference call to go over its fourth-quarter earnings with securities analysts.
RGA is the first U.S. company in the life and annuity sector to post its results for the quarter.
RGA is reporting $110 million in net income for the fourth quarter of 2018 on $3.3 billion in revenue and $65 billion in assets, compared with $1.2 billion in net income on $3.2 billion in revenue and $61 billion in assets for the fourth quarter of 2017.