Reinsurance Group (NYSE:RGA) of America, Incorporated (NYSE:RGA), a leader in the life reinsurance market, announced the appointment of Axel André as Executive Vice President and Chief Financial Officer effective today. André, 48, succeeds Todd Larson, who has resigned from his role as Senior Executive Vice President and CFO. Larson will continue with the company until December 31, 2024, as a Special Advisor to Tony Cheng, RGA's President and CEO.
André brings a wealth of experience to RGA, having previously held the position of EVP, Finance since June 24, 2024. His prior roles include EVP and CFO of American Equity Investment Life (NYSE:AEL) Holding Company and Jackson Financial Inc (NYSE:JXN)., as well as significant tenure at AIG (NYSE:AIG) Life & Retirement and Goldman, Sachs & Co. André's academic credentials include a M.Sci from Imperial College (University of London) and a PhD in Physics from Harvard University.
Under the terms of his employment, detailed in an offer letter filed with the SEC, André will receive an annual salary of $750,000. He is also eligible for an annual bonus with a target of 150% of his salary, subject to performance criteria. For 2024, the bonus will be prorated based on his start date. In addition, André will participate in RGA's long-term incentive program with a target award grant of 400% of base salary.
As part of his compensation package, André received a one-time award of restricted stock units valued at $750,000 and stock appreciation rights valued at $750,000, both vesting incrementally until December 31, 2026. Furthermore, he received a one-time restricted stock unit award valued at $1,000,000, vesting on July 24, 2027.
The company's future proxy statements will detail any changes to its long-term incentive awards. The information regarding André's appointment and compensation is based on a press release statement and filings with the Securities and Exchange Commission.
RGA's shares are traded on the New York Stock Exchange, and the company is known for its comprehensive suite of reinsurance products and services. This strategic appointment of André is expected to support RGA's continued growth and financial management.
In other recent news, Reinsurance Group of America, Incorporated (RGA) reported a robust second quarter performance for 2024, surpassing analyst expectations with adjusted operating earnings of $5.48 per share.
The company witnessed significant growth across all business lines and geographies, and an increase in adjusted operating return on equity to 15.3%. RGA's strategic capital deployment of $307 million and a 4.7% dividend increase to $0.89 per share reflect a confident outlook, despite a higher-than-expected effective tax rate for the quarter.
RGA's underwriting results were positive for the fifth consecutive quarter, and the book value per share increased to $149, marking a 10.4% CAGR since 2021. The company expects an effective tax rate of 24% to 25% for the full year and maintains a strong capital and liquidity position, with excess capital of about $1 billion.
Despite some unfavorable impacts, RGA's executives expressed confidence in meeting financial targets and delivering attractive returns to shareholders. These are among the recent developments in the company's performance.
InvestingPro Insights
As Reinsurance Group of America (RGA) welcomes Axel André as the new Executive Vice President and Chief Financial Officer, it's worth noting that the company's financial health and stock performance are critical areas of focus for investors.
According to InvestingPro data, RGA boasts a market capitalization of $13.59 billion and a forward-looking P/E ratio of approximately 16.05, indicating a valuation that may be attractive relative to near-term earnings growth. This is supported by an InvestingPro Tip highlighting that RGA is trading at a low P/E ratio in comparison to its anticipated earnings growth.
Furthermore, RGA has demonstrated a commitment to shareholder returns, with a notable track record of increasing its dividend for 14 consecutive years, and maintaining dividend payments for an impressive 32 years. This consistent performance is a testament to the company's financial stability and prudent management, which may be further enhanced under André's financial stewardship. Additionally, analysts have revised their earnings upwards for RGA's upcoming period, suggesting a positive outlook on the company's profitability.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, there are currently 7 more tips available on InvestingPro's platform that could provide deeper insights into RGA's financial nuances and investment potential.
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