|Reinsurance Group of America’s new headquarters in Chesterfield is under construction. The project is on track for the company’s move in October.|
Reinsurance Group of American Inc., one of the largest global providers of life reinsurance, is on track to move into its new $150 million world headquarters in Chesterfield in October.
With 2013 revenue of $10.3 billion, RGA officials said its recent expansion and projected growth prompted the move. That growth is also reflected in the company’s stock performance.
RGA shares are up 10 percent from the beginning of January through the end of August, according to company officials.
In the second quarter, “Operating earnings per share were $2.23 and operating ROE (return on equity) exceeded 12 percent,” President and CEO Greig Woodring said on an earnings call in July. “Premium growth was a solid 7 percent in both the current quarter and year-to-date, and our new business activity was strong.”
Woodring also reported a 10 percent increase in RGA’s shareholder dividend and continued growth in book value per share. He said on the call that book value had increased more than 5 percent so far in 2014 and 11 percent since the second quarter last year.
In regard to domestic and international business, RGA officials said they are only seeing “subtle variations” in the life and health reinsurance industry. North American markets show “relatively low growth characteristics,” while company officials said they’re seeing double digit growth rates in some of the international markets, including Asia.
With offices in 26 countries, including North America, Mexico, Canada, China, India and Australia, the new Chesterfield world headquarters will reportedly bring 300 new jobs to the St. Louis area. RGA employs about 1,900 employees globally and 850 locally.
Employees from RGA’s current Chesterfield and St. Charles offices will move to the new building. The transition of employees will begin in October and is expected to be completed by year’s end, according to RGA officials. The new facility accommodates 1,450 people with the possibility of an additional 250,000-square-foot expansion.
Chesterfield Mayor Bob Nation said although this is not a situation of a new company moving into Chesterfield, RGA’s transition to a larger world headquarters within the area benefits St. Louis residents and consumers.
“The infrastructure improvement through rebuilding the Chesterfield Parkway West overpass above Interstate 64 and the widening of adjacent roads, that will benefit other nearby businesses,” Nation said. “It will benefit the Doubletree Hotel and the Monsanto development that is concurrently going on.”
MoDOT is funding the $4.2 million bridge replacement through an economic development agreement with RGA and in return RGA is creating 300 new jobs, according to MoDOT officials.
“It’s several million dollars RGA is contributing for the infrastructure and landscaping,” Long said. He said St. Louis County is also contributing a “couple hundred thousand dollars” for the project.
The Gensler architecture firm designed RGA’s new building, while Fox Architects designed the interior. Clayco is the builder and Tony Menzines is the project director.
St. Louis Business Journal ©September 2014
Source: Fox Architects – Articles