RGA reports $12m pre-tax income loss in APAC for Q2

India took the biggest chunk in COVID-19 claims for the region.

Global reinsurance group, Reinsurance Group of America (RGA), has reported a $12m pre-tax income loss in its Asia Pacific business segment according to the reinsurers latest quarterly report.

According to RGA, the results reflected COVID-19 claims of approximately $55m. The bulk of the claims, which is $51m, was from India.

APAC net premiums also saw a slight increase from $616m compared to $607m in the same period last year. Additionally, foreign currency exchange rates had a favourable effect of $30m on net premiums.

Despite a reported loss in APAC, RGA reported an overall net income of $344m for the second quarter, compared with $158m a year earlier. Meanwhile, adjusted operating income climbed from $87m to $274.

RGA also said it has increased its net premiums by 11% to $3.1b

According to the group’s President and CEO Anna Manning, because the earnings contribution was broad-based by geography and lines of business, the impact of COVID-19 was significantly reduced, and their investment results were very favourable. 

“Notably, our U.S. Traditional segment had a very good quarter, and our GFS business performed extremely well across all our regions and lines of business. Reported premium growth was very good, organic growth was solid, and new business momentum has picked up and is encouraging. We deployed approximately $200m of capital into in-force transactions, and the pipeline is active. Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.2b. We expect our results to continue to reflect some additional COVID-19 claims, but at manageable and decreasing levels,” Manning said.