July 26, 2012 / 10:02 PM / 6 years ago

Reinsurance Group's operating profit misses; co raises dividend

* Q2 oper profit per share $1.65 vs est $1.77

* Q2 net premiums increase 9 pct to $1.95 bln

* Q2 investment income falls 3 pct to $328.3 mln

* Raises dividend to $0.24/shr from $0.18/shr

July 26 (Reuters) - Reinsurance Group of America Inc reported a second-quarter operating profit below Wall Street estimates on lower investment income, but the reinsurer raised its quarterly dividend by a third.

The company increased the quarterly dividend to 24 cents from 18 cents, payable to shareholders of record as of Aug. 10.

The reinsurer’s net profit rose to $141.1 million, or $1.91 per share for the second quarter, from $123.9 million, or $1.66 per share, a year earlier.

Operating profit — a key metric of profitability for insurers as it excludes certain investment gains and losses — rose to $1.65 per share, from $1.60 per share, a year earlier.

Analysts on average had expected the reinsurer, valued at $4.15 billion, to post an operating profit of $1.77 per share, according to Thomson Reuters I/B/E/S.

Net premiums for the period increased 9 percent to $1.95 billion.

Investment income fell 3 percent to $328.3 million.

Reinsurance Group’s unit RGA Re earlier in the month agreed to reinsure 90 percent of a block of John Hancock Life Insurance Co’s fixed deferred annuity business for an initial premium of $5.4 billion.

Reinsurance Group’s shares, which have gained 12 percent in the last month, closed at $56.83 on Thursday on the New York Stock Exchange.

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