Key Takeaways Reinsurance Group leads reinsurance markets in the United States, Latin America, and Canada.Q2 net investment income surged 30.1% to $1.4B, with yields up 66 bps to 5.3%.Shares have lost 11.1% YTD as 2025 and 2026 earnings estimates decline.Shares of Reinsurance Group of America (RGA) have lost 11.1% compared with the industry’s decline of  2.5% in the year-to-date period. The  Finance sector and the Zacks S&P 500 Composite have gained 10.6% and 9.5%, respectively, in the same time frame.The i ...

Core Insights - Reinsurance Group of America (RGA) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, missing the Zacks Consensus Estimate by 15.4% and decreasing 13.9% from the previous year [1][9] - Operating revenues reached $5.6 billion, a 9.6% year-over-year increase, but fell short of consensus estimates by 1.1% [2][9] - Total benefits and expenses rose 14.1% year over year to $5.2 billion, driven by higher claims and policy benefits [3][9] Segment Performance - **U.S. and Latin America**: Pre-tax adjusted operating income decreased 59% year over year to $101 million, with net premiums increasing 10.5% to $2 billion [4] - **Canada**: Pre-tax adjusted operating income increased 12.1% year over year to $37 million, with net premiums rising 4% to $339 million [5][6] - **EMEA**: Pre-tax adjusted operating income climbed 57.6% year over year to $134 million, with premiums increasing 15.3% to $573 million [7] - **Asia/Pacific**: Pre-tax adjusted operating income rose 6.5% year over year to $181 million, with premiums increasing 15.3% to $816 million [10] Financial Metrics - Net premiums totaled $4.2 billion, a 5.9% year-over-year increase [3] - Investment income increased 30.1% from the prior year to $1.4 billion, with an average investment yield of 5.3%, up 66 basis points [3] - As of June 30, 2025, total assets were $133.5 billion, a 12.5% increase from the end of 2024, and book value per share rose 5.2% to $155.87 [12] Capital Deployment - RGA deployed $276 million for in-force block transactions and declared a quarterly dividend of 93 cents, payable on August 26, 2025 [13]

Company Overview - Reinsurance Group (RGA) is headquartered in Chesterfield and has experienced a price change of -16.99% this year [3] - The company currently pays a dividend of $0.89 per share, resulting in a dividend yield of 2.01%, which is higher than the Insurance - Life Insurance industry's yield of 1.81% and the S&P 500's yield of 1.49% [3] Dividend Analysis - RGA's current annualized dividend of $3.56 has increased by 2.3% from the previous year [4] - Over the past 5 years, RGA has raised its dividend 4 times, achieving an average annual increase of 6.28% [4] - The company's current payout ratio is 17%, indicating that it pays out 17% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for RGA's earnings in 2025 is $23.10 per share, with an expected increase of 2.35% from the previous year [5] - The company is viewed as a strong dividend play, particularly appealing to income investors [6] Investment Considerations - RGA is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

PART I – FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show significant asset growth to $133.5 billion, driven by investments, with a rise in six-month net income despite a slight Q2 decline [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects substantial growth in total assets to $133.5 billion, primarily from increased investments and corresponding liabilities Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total investments | $109,901 | $98,040 | | Cash and cash equivalents | $5,416 | $3,326 | | **Total assets** | **$133,479** | **$118,675** | | **Liabilities** | | | | Future policy benefits | $63,531 | $53,368 | | Interest-sensitive contract liabilities | $37,158 | $35,095 | | Long-term debt | $5,734 | $5,042 | | **Total liabilities** | **$121,336** | **$107,769** | | **Equity** | | | | Total RGA, Inc. shareholders' equity | $12,053 | $10,816 | | **Total equity** | **$12,143** | **$10,906** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement details a year-over-year increase in six-month net income, despite lower net premiums and a quarterly profit dip Condensed Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net premiums | $4,151 | $3,920 | $8,170 | $9,296 | | Net investment income | $1,408 | $1,082 | $2,640 | $2,043 | | Total revenues | $5,599 | $4,878 | $10,859 | $11,215 | | Total benefits and expenses | $5,258 | $4,609 | $10,149 | $10,674 | | Income before income taxes | $341 | $269 | $710 | $541 | | Net income available to RGA, Inc. shareholders | $180 | $203 | $466 | $413 | | Diluted earnings per share | $2.70 | $3.03 | $6.97 | $6.19 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements indicate a significant decrease in operating cash flow, offset by lower cash used in investing activities Condensed Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,249 | $6,703 | | Net cash used in investing activities | $(2,872) | $(7,176) | | Net cash provided by financing activities | $2,607 | $2,225 | | **Change in cash and cash equivalents** | **$2,090** | **$1,626** | | **Cash and cash equivalents, end of period** | **$5,416** | **$4,596** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes clarify the company's business scope and confirm the financial statements adhere to U.S. GAAP for interim reporting - The Company is an insurance holding company providing traditional reinsurance (life, health, disability, critical illness) and financial solutions (longevity, asset-intensive products, financial reinsurance, capital solutions, PRT, stable value products)[18](index=18&type=chunk) - The financial statements are prepared in conformity with U.S. GAAP for interim reporting and should be read with the 2024 Annual Report on Form 10-K[19](index=19&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=56&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A details decreased adjusted operating income due to unfavorable claims, offset by investment gains, and highlights a major upcoming reinsurance transaction - The company is a leading global provider of life reinsurance and financial solutions, with **$4.1 trillion of life reinsurance in force** and assets of **$133.5 billion** as of June 30, 2025[185](index=185&type=chunk) - On July 31, 2025, RGA Re executed a significant reinsurance transaction with subsidiaries of Equitable Holdings, Inc., assuming a 75% quota share of approximately $32 billion in U.S. statutory individual life insurance liabilities, which is estimated to add **$11 billion to $12 billion** in assets and liabilities[149](index=149&type=chunk)[181](index=181&type=chunk) Reconciliation of Income Before Income Taxes to Adjusted Operating Income (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income before income taxes | $341 | $269 | $710 | $541 | | Adjustments | $80 | $222 | $196 | $466 | | **Adjusted operating income before income taxes** | **$421** | **$491** | **$906** | **$1,007** | [Consolidated Results of Operations](index=58&type=section&id=MD&A_Consolidated_Results) Consolidated results show higher pre-tax income due to lower investment losses, though adjusted operating income declined from unfavorable claims experience - For the six months ended June 30, 2025, **pre-tax income increased to $710 million** from $541 million year-over-year, driven by a decrease in investment-related losses and the non-recurrence of a large non-economic loss from a PRT transaction in 2024[195](index=195&type=chunk) - **Adjusted operating income before tax decreased** for both the three and six-month periods ended June 30, 2025, primarily due to unfavorable claims experience in the U.S. Traditional segment and higher operating costs, partially offset by increased investment income[205](index=205&type=chunk)[207](index=207&type=chunk) - Net premiums decreased for the six-month period due to large single-premium Pension Risk Transfer (PRT) transactions in 2024, however, **life reinsurance in force grew to $4.1 trillion** from $3.8 trillion year-over-year[209](index=209&type=chunk) [Results of Operations by Segment](index=62&type=section&id=MD&A_Segment_Results) Segment results reveal mixed performance, with a significant decline in the U.S. & Latin America segment offset by strong growth in

Financial Data and Key Metrics Changes - The company reported operating EPS of $4.72 per share, with an adjusted operating return on equity of 14.3% for the trailing twelve months, aligning with intermediate term targets [7][22] - The pretax adjusted operating income for the quarter was $421 million, reflecting a decrease due to claims volatility in U.S. Individual Life and unfavorable claims in the Healthcare Excess business [22][24] - Economic claims experience was lower than expected by $256 million, leading to a $158 million unfavorable financial impact for the current period [28] Business Line Data and Key Metrics Changes - U.S. Individual Life experienced a higher level of large claims, offsetting favorable results from Q1, while the Healthcare Excess business faced unfavorable claims consistent with market trends [7][8] - The traditional business premiums rose by 11% on a constant currency basis for the first six months of the year, indicating strong growth across regions [11][34] - The U.S. Financial Solutions results were higher than expected due to increased variable investment income and higher investment yields [38] Market Data and Key Metrics Changes - In Asia, traditional business had a robust quarter with significant new treaties, particularly in Hong Kong, which saw a 43% increase in life insurance sales [15][16] - The U.K. PRT market was active, with several attractive transactions closed, positioning the company as a market leader [18] - The Asia Financial Solutions segment closed several transactions in Japan, Korea, and Hong Kong, benefiting from regulatory changes [17] Company Strategy and Development Direction - The company aims to leverage its strong capital position to fund growth and return capital to shareholders through dividends and share repurchases [9][35] - A focus on creation REIT allows the company to exceed targets for exclusive arrangements, enhancing pricing returns and value creation [12][21] - The company is committed to maintaining strong risk discipline and selectively pursuing business that aligns with its risk appetite [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business prospects, citing a strong pipeline and the ability to drive improved returns for shareholders [21][43] - The company anticipates that the majority of the Healthcare Excess block will be repriced by January 2026, expecting improvements in results moving into 2026 [30][63] - Management acknowledged the volatility in claims experience but emphasized that it does not indicate a material trend [31][56] Other Important Information - The effective tax rate for the quarter was 25.2%, above the expected range, primarily due to valuation allowances on foreign tax credits [25] - The company announced a 4.5% increase in quarterly dividends to $0.93 per share [36] Q&A Session Summary Question: Can you talk about the additional credit on the LifeBlock? - Management indicated that the value of in-force credits was a result of extensive analysis and reflects the current book of business without changes in actuarial assumptions [48][49] Question: Was there a significant lag effect from Q1 in individual life experience? - Management noted that while there was some volatility, the year-to-date results for U.S. Individual Life were broadly in line with expectations [54][56] Question: Can you elaborate on the health experience in the quarter? - Management explained that the negative experience was primarily driven by higher claims costs in the healthcare access line, which is expected to improve with implemented rate increases [62][63] Question: What are the priorities for using excess capital? - Management emphasized a balanced approach, aiming for a total shareholder return of 20% to 30% of after-tax operating earnings through dividends and share repurchases [72][76] Question: Is there a practical limitation to the value of in-force credit? - Management confirmed that there are limits to the amount of value of in-force credit that can be recognized, but opportunities for further recognition exist [108] Question: How does the company plan to address volatility in results? - Management acknowledged the potential for retrocession to manage volatility but emphasized the importance of balancing this with business growth opportunities [110]

Financial Data and Key Metrics Changes - The company reported operating EPS of $4.72 per share, with an adjusted operating return on equity of 14.3% for the trailing twelve months, which aligns with intermediate-term targets [6][23] - The pretax adjusted operating income for the quarter was $421 million, reflecting a decrease due to claims volatility in U.S. Individual Life and unfavorable claims in the Healthcare Excess business [23][24] - Economic claims experience was lower than expected by $256 million, leading to a $158 million unfavorable financial impact for the current period [28][29] Business Line Data and Key Metrics Changes - U.S. Individual Life experienced a higher level of large claims, offsetting favorable results from Q1, while the Healthcare Excess business faced unfavorable claims consistent with market trends [6][7] - The traditional business premium growth was 11% year-to-date on a constant currency basis, with strong growth in the U.S., EMEA, and Asia [35] - The company achieved a record quarter for individual underwriting cases, indicating strong performance in the U.S. Traditional area [20] Market Data and Key Metrics Changes - In Asia, traditional business saw robust performance with a 43% increase in life insurance sales in Hong Kong for the first quarter [16] - The U.S. PRT market showed increased activity at the jumbo end, with expectations for a pickup in the second half of the year [19] - Claims in Canada and EMEA were modestly unfavorable, while APAC experience was favorable [32] Company Strategy and Development Direction - The company is focused on capital optimization and has increased excess capital to $3.8 billion, providing flexibility for growth and shareholder returns [24][36] - The strategic focus includes building a comprehensive asset management platform and maintaining strong risk discipline [14][22] - The company aims to balance capital deployment into business growth with returning capital to shareholders through dividends and share repurchases, targeting a payout ratio of 20% to 30% of after-tax operating earnings [37][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business prospects, citing a proven strategy that has stood the test of time [22][44] - The company anticipates improvements in claims experience and margins in the Healthcare Access business as pricing actions are implemented [31][64] - Management acknowledged the volatility in claims experience but emphasized that year-to-date results are broadly in line with expectations [57][72] Other Important Information - The effective tax rate for the quarter was 25.2%, above the expected range, primarily due to valuation allowances on foreign tax credits [26] - The company announced a 4.5% increase in quarterly dividends to $0.93 per share [37] Q&A Session Summary Question: Can you talk about the additional credit on the LifeBlock? - Management indicated that the value of in-force credits was a result of extensive analysis and reflects the current book of business without changes in actuarial assumptions [48][49] Question: Can you unpack the individual life experience in the quarter? - Management noted that the claims experience should be reviewed over longer periods, and while Q2 saw elevated large claims, year-to-date results are in line with expectations [55][56] Question: Can you discuss the health experience in the quarter? - Management explained that the negative experience in the Healthcare Access line is driven by higher claims costs, but rate increases have been implemented and margins are expected to improve [63][64] Question: What are the priorities for using excess capital? - Management stated that they aim to balance capital deployment into business growth with returning capital to shareholders, with a focus on share buybacks being opportunistic [75][77] Question: Is there a practical limitation to the value of in-force credit? - Management confirmed that there are limits to the amount of value of in-force credit that can be recognized, but they believe there are opportunities for further recognition [106][108] Question: How does the company plan to address volatility in results? - Management acknowledged the potential for volatility but emphasized their focus on long-term growth and the importance of maintaining appropriate reserves [110][112]

Financial Performance - Adjusted operating income, excluding notable items, was $4.72 per diluted share[15] - The trailing twelve-month adjusted operating ROE, excluding notable items, was 14.3%[15] - The company's total adjusted operating income before taxes was $421 million[20] Capital Management - Estimated deployable capital is $3.4 billion[15] - Estimated excess capital increased to $3.8 billion, or $2.3 billion pro forma for the EQH transaction[15] - The company has access to an $850 million syndicated credit facility[56] Business Growth - Traditional premium growth was 11.0% year-to-date on a constant currency basis[15] - U S and Latin America Traditional premiums increased by 11.2% to $3.940 billion[23] - Global Financial Solutions premiums decreased by 67.8% to $866 million, primarily due to a decrease in single premium pension risk transfer transactions[23] Investment Portfolio - Assets under management are approximately $115 billion[30] - Over 94% of fixed maturity securities are rated investment-grade[30] - The Q2 new money rate was 6.53%[38]

Core Insights - Reinsurance Group (RGA) reported $5.64 billion in revenue for Q2 2025, a 9.6% year-over-year increase, but fell short of the Zacks Consensus Estimate of $5.71 billion, resulting in a surprise of -1.09% [1] - The company's EPS for the quarter was $4.72, down from $5.48 a year ago, with an EPS surprise of -15.41% compared to the consensus estimate of $5.58 [1] Financial Performance Metrics - Net premiums from U.S. and Latin America Traditional were $2.02 billion, exceeding the average estimate of $1.95 billion [4] - Other Revenues from Corporate and Other were $18 million, surpassing the average estimate of $11.5 million [4] - Net premiums from U.S. and Latin America Financial Solutions reported a loss of $5 million, significantly below the average estimate of $245.13 million [4] - Net investment income from U.S. and Latin America Financial Solutions was $371 million, exceeding the average estimate of $348.21 million [4] - Total net premiums reported were $4.15 billion, below the average estimate of $4.32 billion, representing a year-over-year change of +5.9% [4] - Other revenues totaled $84 million, significantly lower than the average estimate of $109.95 million, reflecting a year-over-year decline of -42.9% [4] - Net investment income overall was $1.41 billion, surpassing the five-analyst average estimate of $1.22 billion [4] Stock Performance - Shares of Reinsurance Group have returned -2.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Reinsurance Group of America, Incorporated (NYSE: RGA) has underperformed in the past year, with a 15% decline in share value, raising concerns about its transaction efficacy despite aggressive deal-making [1] Group 1: Company Performance - RGA's shares have lost 15% of their value over the past year [1] - The company has been active in signing large transactions, but the mixed performance has led to increased scrutiny [1] Group 2: Market Sentiment - There are growing concerns regarding the effectiveness of RGA's strategies in the current market environment [1]

[Consolidated Financials](index=3&type=section&id=Consolidated) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) In the second quarter of 2025, RGA reported net premiums of $4.151 billion, a slight decrease in net income to $180 million, and adjusted operating income of $315 million Q2 2025 Key Financial Metrics (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net premiums | $4,151M | $3,920M | +$231M | $8,170M | $9,296M | -$1,126M | | Net income available to shareholders | $180M | $203M | -$23M | $466M | $413M | +$53M | | Adjusted operating income | $315M | $365M | -$50M | $693M | $766M | -$73M | | Diluted EPS (Net Income) | $2.70 | $3.03 | -$0.33 | $6.97 | $6.19 | +$0.78 | | Diluted EPS (Adjusted Operating) | $4.72 | $5.48 | -$0.76 | $10.38 | $11.49 | -$1.11 | | Book value per share, excluding AOCI | $155.87 | $148.19 | +$7.68 | $155.87 | $148.19 | +$7.68 | - Assumed life reinsurance in force grew to **$4.09 trillion** as of June 30, 2025, up from **$3.77 trillion** in the prior year quarter[7](index=7&type=chunk) [Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)](index=4&type=section&id=Consolidated%20GAAP%20Income%20Statements%20(including%20Adjusted%20Operating%20Income%20Reconciliations)) For Q2 2025, total revenues were $5.6 billion, an increase from $4.88 billion in the prior-year quarter, driven by higher net premiums and net investment income Q2 2025 Consolidated Income Statement Summary (in millions) | Item | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net premiums | $4,151 | $3,920 | +$231 | | Net investment income | $1,408 | $1,082 | +$326 | | Total revenues | $5,599 | $4,878 | +$721 | | Total benefits and expenses | $5,258 | $4,609 | +$649 | | Income before income taxes | $341 | $269 | +$72 | | Net income available to RGA's shareholders | $180 | $203 | -$23 | Reconciliation to After-Tax Adjusted Operating Income (in millions) | Item | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP net income attributable to RGA | $180 | $203 | -$23 | | Adjustments (net) | +$135 | +$162 | -$27 | | Adjusted operating income | $315 | $365 | -$50 | - Foreign currency exchange rates had a positive effect on net premiums by **$45 million** and on pre-tax adjusted operating income by **$9 million** compared to the prior-year quarter[11](index=11&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, RGA's total assets increased to $133.5 billion from $109.9 billion a year prior, primarily due to growth in fixed maturity securities and mortgage loans Balance Sheet Summary (in millions) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total investments | $109,901 | $89,620 | | **Total assets** | **$133,479** | **$109,888** | | Future policy benefits | $63,531 | $50,779 | | **Total liabilities** | **$121,336** | **$100,063** | | **Total RGA, Inc. shareholders' equity** | **$12,053** | **$9,735** | | Total RGA, Inc. shareholders' equity, excluding AOCI | $10,301 | $9,755 | [Segment Summaries of Adjusted Operating Income Statements](index=7&type=section&id=Segment%20Summaries%20of%20Adjusted%20Operating%20Income%20Statements) [U.S. and Latin America Traditional](index=8&type=section&id=U.S.%20and%20Latin%20America%20Traditional) The U.S. and Latin America Traditional segment reported a significant decrease in pre-tax adjusted operating income to $4 million in Q2 2025 from $167 million in the prior-year quarter U.S. and Latin America Traditional Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $2,019 | $1,827 | +$192 | | Adjusted Operating Income (Pre-tax) | $4 | $167 | -$163 | - The loss ratio for the segment increased significantly to **98.9%** in Q2 2025, compared to **88.1%** in Q2 2024[18](index=18&type=chunk) - Assumed Life Reinsurance in Force for this segment grew to **$1.85 trillion** from **$1.72 trillion** in the prior year[18](index=18&type=chunk) [U.S. and Latin America Financial Solutions](index=10&type=section&id=U.S.%20and%20Latin%20America%20Financial%20Solutions) The U.S. and Latin America Financial Solutions segment saw pre-tax adjusted operating income increase to $97 million in Q2 2025 from $80 million in the prior-year quarter U.S. and Latin America Financial Solutions Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $(5) | $305 | -$310 | | Net Investment Income | $371 | $318 | +$53 | | Adjusted Operating Income (Pre-tax) | $97 | $80 | +$17 | - Policyholder account balances for fixed annuities stood at **$10.5 billion** as of June 30, 2025[24](index=24&type=chunk) [Canada Traditional](index=12&type=section&id=Canada%20Traditional) The Canada Traditional segment reported a stable pre-tax adjusted operating income of $28 million for Q2 2025, a slight increase from $26 million in the prior-year quarter Canada Traditional Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $339 | $326 | +$13 | | Adjusted Operating Income (Pre-tax) | $28 | $26 | +$2 | - Assumed Life Reinsurance in Force for this segment increased to **$512.4 billion** from **$489.3 billion** in the prior year[27](index=27&type=chunk) [Canada Financial Solutions](index=13&type=section&id=Canada%20Financial%20Solutions) The Canada Financial Solutions segment, which includes longevity and fee-based transactions, posted a pre-tax adjusted operating income of $9 million in Q2 2025, up from $7 million year-over-year Canada Financial Solutions Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $45 | $48 | -$3 | | Adjusted Operating Income (Pre-tax) | $9 | $7 | +$2 | - This segment's operations primarily consist of longevity and fee-based transactions[32](index=32&type=chunk) [Europe, Middle East and Africa Traditional](index=14&type=section&id=Europe,%20Middle%20East%20and%20Africa%20Traditional) The EMEA Traditional segment showed significant improvement, reporting a pre-tax adjusted operating income of $18 million in Q2 2025, compared to a loss of $1 million in the prior-year quarter EMEA Traditional Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $573 | $497 | +$76 | | Adjusted Operating Income (Loss) (Pre-tax) | $18 | $(1) | +$19 | - Assumed new business production in the segment more than doubled year-over-year, reaching **$34.1 billion** in Q2 2025[35](index=35&type=chunk) [Europe, Middle East and Africa Financial Solutions](index=15&type=section&id=Europe,%20Middle%20East%20and%20Africa%20Financial%20Solutions) The EMEA Financial Solutions segment delivered strong results with pre-tax adjusted operating income rising to $116 million in Q2 2025, a 35% increase from $86 million in the prior-year quarter EMEA Financial Solutions Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $247 | $159 | +$88 | | Adjusted Operating Income (Pre-tax) | $116 | $86 | +$30 | - This segment's operations include longevity, asset-intensive, and fee-based transactions[40](index=40&type=chunk) [Asia Pacific Traditional](index=16&type=section&id=Asia%20Pacific%20Traditional) The Asia Pacific Traditional segment maintained stable profitability, with pre-tax adjusted operating income of $104 million in Q2 2025, compared to $99 million in the prior-year quarter Asia Pacific Traditional Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $816 | $708 | +$108 | | Adjusted Operating Income (Pre-tax) | $104 | $99 | +$5 | - Critical illness net premiums, a key product in this region, grew to **$424 million** from **$358 million** in the prior-year quarter[43](index=43&type=chunk) [Asia Pacific Financial Solutions](index=17&type=section&id=Asia%20Pacific%20Financial%20Solutions) The Asia Pacific Financial Solutions segment reported a pre-tax adjusted operating income of $77 million in Q2 2025, a slight increase from $71 million year-over-year Asia Pacific Financial Solutions Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums | $117 | $50 | +$67 | | Net Investment Income | $247 | $163 | +$84 | | Adjusted Operating Income (Pre-tax) | $77 | $71 | +$6 | - Assumed Life Reinsurance in Force more than doubled to **$22.1 billion** from **$9.6 billion** in the prior year, indicating strong business growth[47](index=47&type=chunk) [Corporate and Other](index=18&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported a pre-tax adjusted operating loss of $32 million in Q2 2025, an improvement from a loss of $44 million in the prior-year quarter Corporate and Other Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Investment Income | $166 | $123 | +$43 | | Interest Expense | $90 | $73 | +$17 | | Adjusted Operating Loss (Pre-tax) | $(32) | $(44) | +$12 | [Summary of Segment Adjusted Operating Income](index=19&type=section&id=Summary%20of%20Segment%20Adjusted%20Operating%20Income) Consolidated pre-tax adjusted operating income for Q2 2025 was $421 million, down from $491 million in Q2 2024 Pre-Tax Adjusted Operating Income by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | U.S. and Latin America | $101 | $247 | -$146 | | Canada | $37 | $33 | +$4 | | Europe, Middle East and Africa | $134 | $85 | +$49 | | Asia Pacific | $181 | $170 | +$11 | | Corporate and Other | $(32) | $(44) | +$12 | | **Consolidated Total** | **$421** | **$491** | **-$70** | [Investments](index=20&type=section&id=Investments) [Cash and Invested Assets and Investment Income and Yield Summary](index=20&type=section&id=Cash%20and%20Invested%20Assets%20and%20Investment%20Income%20and%20Yield%20Summary) As of June 30, 2025, total cash and invested assets reached $115.3 billion, up from $94.2 billion a year ago Cash and Invested Assets Breakdown (in millions) | Asset Class | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Fixed maturity securities, AFS | $86,043 | $70,491 | | Mortgage loans | $10,057 | $7,984 | | Cash and cash equivalents | $5,416 | $4,596 | | **Total cash and invested assets** | **$115,317** | **$94,216** | Investment Yield Summary (in millions, except yield) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net investment income (excl. spread business) | $595M | $436M | | Annualized investment yield | 5.31% | 4.65% | [Fixed Maturity Securities](index=21&type=section&id=Fixed%20Maturity%20Securities) The fixed maturity securities portfolio, valued at $86.0 billion at fair value as of June 30, 2025, is predominantly composed of corporate bonds (66.5%) Fixed Maturity Securities by Type (June 30, 2025, Fair Value, in millions) | Security Type | Fair Value (in millions) | % of Total | | :--- | :--- | :--- | | Corporate | $57,326 | 66.5% | | Other foreign government | $6,162 | 7.2% | | ABS | $6,016 | 7.0% | | Japanese government | $5,738 | 6.7% | | Canadian government | $5,134 | 6.0% | | Other | $5,767 | 6.6% | | **Total** | **$86,043** | **100.0%** | [Corporate Fixed Maturity Securities by Industry](index=22&type=section&id=Corporate%20Fixed%20Maturity%20Securities%20by%20Industry) The corporate fixed maturity portfolio of $57.3 billion (fair value) is well-diversified across industries Corporate Securities by Industry (June 30, 2025, Amortized Cost, in millions) | Industry Sector | Amortized Cost (in millions) | % of Total | Average Rating | | :--- | :--- | :--- | :--- | | Industrials | $31,866 | 52.4% | BBB to A- | | Financial institutions | $18,947 | 31.1% | A- | | Utilities | $10,193 | 16.5% | A- | | **Total** | **$61,006** | **100.0%** | **BBB+** | [Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities](index=23&type=section&id=Ratings%20of%20Fixed%20Maturity%20Securities%20and%20Structured%20Fixed%20Maturity%20Securities) The fixed maturity portfolio maintains a high credit quality, with 93.8% of securities rated investment grade (NAIC 1 or 2) based on amortized cost as of June 30, 2025 - As of June 30, 2025, **93.8%** of the fixed maturity portfolio by amortized cost was rated investment grade (NAIC Designation 1 or 2)[69](index=69&type=chunk) Structured Fixed Maturity Securities (June 30, 2025, Amortized Cost, in millions) | Security Type | Amortized Cost (in millions) | % of Total | | :--- | :--- | :--- | | Total ABS | $6,160 | 62.6% | | CMBS | $2,129 | 21.6% | | Total RMBS | $1,593 | 15.8% | | **Total** | **$9,882** | **100.0%** | [Fixed Maturity Securities Below Amortized Cost](index=24&type=section&id=Fixed%20Maturity%20Securities%20Below%20Amortized%20Cost) As of June 30, 2025, the company held fixed maturity securities with a total fair value of $50.8 billion that were below their amortized cost, resulting in gross unrealized losses of $6.9 billion Gross Unrealized Losses (June 30, 2025, in millions) | Category | Gross Unrealized Losses | | :--- | :--- | | Investment grade securities | $6,808 | | Below investment grade securities | $126 | | **Total fixed maturity securities** | **$6,934** | - Of the total **$6.9 billion** in gross unrealized losses, **$6.1 billion** were on securities held in an unrealized loss position for 12 months or longer[73](index=73&type=chunk) [Consolidated Investment Related Gains and Losses](index=26&type=section&id=Consolidated%20Investment%20Related%20Gains%20and%20Losses) For Q2 2025, the company reported total net investment related losses of $44 million Investment Related Gains (Losses) Summary (Q2 2025, in millions) | Item | Amount | | :--- | :--- | | Net losses on fixed maturity securities available for-sale | $(66) | | Net gains on total derivatives | $53 | | Other net losses | $(31) | | **Total investment related gains (losses), net** | **$(44)** | [Appendix](index=27&type=section&id=Appendix) [Reconciliations of GAAP to Non-GAAP Measures](index=27&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations from GAAP measures to the non-GAAP measures used throughout the report - This section contains detailed reconciliations of GAAP income to adjusted operating income for each operating segment, such as U.S. and Latin America Traditional, Canada Financial Solutions, etc[83](index=83&type=chunk)[87](index=87&type=chunk)[91](index=91&type=chunk) - It also provides a reconciliation of RGA, Inc. shareholders' equity to a non-GAAP measure that excludes the impact of Accumulated Other Comprehensive Income (AOCI)[95](index=95&type=chunk) - A reconciliation of book value per share to book value per share excluding AOCI is also presented, showing the per-share impact of items like unrealized depreciation of securities and changes in discount rates[96](index=96&type=chunk) [Non-GAAP Disclosures](index=32&type=section&id=Non-GAAP%20Disclosures) The company explains its use of non-GAAP financial measures, stating they provide a clearer picture of ongoing operating performance - The company uses non-GAAP financial measures to better reflect ongoing profitability and underlying trends by excluding volatile items not indicative of core operations[99](index=99&type=chunk) - Adjusted operating income is defined as net income excluding items such as net investment gains/losses, changes in fair value of embedded derivatives, and market risk benefit remeasurements[102](index=102&type=chunk) - The company states it is unable to provide reconciliations for its forward-looking non-GAAP financial targets due to the inherent difficulty in forecasting the various components[104](index=104&type=chunk)