Core Viewpoint - Reinsurance Group (RGA) is expected to report quarterly earnings of $5.58 per share, a 1.8% increase year-over-year, with revenues projected at $5.71 billion, reflecting a 10.8% increase compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 0.3%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Net premiums' to reach $4.32 billion, representing a year-over-year increase of 10.2% [5]. - 'Revenues- Other revenues' are projected at $109.95 million, indicating a decline of 25.2% from the prior-year quarter [5]. Pre-tax Adjusted Operating Income Estimates - 'Pre-tax adjusted operating income (loss)- Total Asia Pacific' is estimated at $171.26 million, slightly up from $170.00 million a year ago [6]. - 'Pre-tax adjusted operating income (loss)- Total Canada' is expected to be $46.30 million, compared to $33.00 million in the previous year [6]. - 'Pre-tax adjusted operating income (loss)- Total U.S. and Latin America' is forecasted at $205.58 million, down from $247.00 million year-over-year [7]. - 'Pre-tax adjusted operating income (loss)- Total EMEA' is projected to reach $112.04 million, up from $85.00 million in the same quarter last year [7]. - 'Pre-tax adjusted operating income (loss)- Asia Pacific Traditional' is expected to be $100.19 million, slightly up from $99.00 million a year ago [8]. - 'Pre-tax adjusted operating income (loss)- Asia Pacific Financial Solutions' is estimated at $68.82 million, down from $71.00 million in the previous year [8]. - 'Pre-tax adjusted operating income (loss)- U.S. and Latin America- Financial Solutions- Total' is projected at $76.48 million, down from $80.00 million year-over-year [9]. - 'Pre-tax adjusted operating income (loss)- Canada Financial Solutions' is expected to be $8.41 million, up from $7.00 million a year ago [9]. - 'Pre-tax adjusted operating income (loss)- Canada Traditional' is forecasted at $38.33 million, compared to $26.00 million in the previous year [10]. - 'Pre-tax adjusted operating income (loss)- U.S. and Latin America- Traditional' is expected to be $129.63 million, down from $167.00 million year-over-year [10]. Stock Performance - Shares of Reinsurance Group have decreased by 0.5% over the past month, contrasting with a 4.9% increase in the Zacks S&P 500 composite [11].

Core Insights - Reinsurance Group of America (RGA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 1.14X, lower than the industry average of 1.97X, the Finance sector's 4.18X, and the S&P 500 Composite's 8.18X [2] - RGA has a market capitalization of $13.13 billion and an average trading volume of 0.4 million shares over the last three months [2] - The company has a Value Score of A, indicating strong valuation metrics [2] Price Performance - RGA shares have lost 3.2% over the past year, while the industry has grown by 14.8%, the Finance sector by 19.7%, and the S&P 500 composite by 11.3% [5] - RGA shares are currently trading above the 50-day simple moving average of $197.98, indicating solid upward momentum [4] Earnings and Growth - RGA has a decent earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 7.85% [6] - Earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8%, and the company has a Growth Score of B [11] - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 2.2%, with revenues projected at $23.45 billion, reflecting a 2.6% improvement [10] Analyst Sentiment and Target Price - The average target price for RGA, based on short-term price targets from 11 analysts, is $244.64 per share, suggesting a potential upside of 25.1% from the last closing price [12] Return on Invested Capital - RGA's return on invested capital (ROIC) has increased annually, with a trailing 12-month ROIC of 6%, significantly higher than the industry average of 0.6% [15] Market Position and Strategy - RGA is a leader in the traditional U.S. and Latin American markets, with a strong product line and significant value embedded in its in-force business, which is expected to generate predictable long-term earnings [17] - The company is well-capitalized and actively seeks growth opportunities while balancing capital returns to shareholders [19] - RGA is ramping up technological inclusion in its products and has maintained a free cash flow conversion rate above 85% in recent quarters [20] Final Assessment - RGA's new business volumes, favorable longevity experience, diversified business model, and effective capital deployment position it well for long-term growth [22] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [22] - Given the solid growth projections and attractive valuations, RGA is considered a stock to hold [23]

Group 1 - The Conservative Income Portfolio focuses on value stocks with high margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and Preferred Stock Trader provides Fixed Income solutions, emphasizing capital preservation and high income potential [3][4] Group 2 - The last coverage of Reinsurance Group (NYSE: RGA) resulted in a "hold" rating, with a recommendation to invest in baby bonds instead of common stock, which has shown little movement since then [2] - The analysts at Trapping Value have over 40 years of combined experience in generating options income while focusing on capital preservation [4] - A long position on RGA includes $155 covered calls sold against it, indicating a strategy to generate income from the investment [6]

Core Viewpoint - Reinsurance Group of America (RGA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 1.19X, lower than the industry average of 1.80X and the Finance sector's 4.09X [1] Group 1: Financial Performance - RGA has a market capitalization of $13.64 billion and an average trading volume of 0.4 million shares over the last three months [1] - RGA's shares have lost 1% over the past year, while the industry has grown by 14.3%, the Finance sector by 16.3%, and the S&P 500 by 10% [5][6] - The company has a decent earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 7.85% [9] Group 2: Growth Projections - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 1.9%, with revenues projected at $24.28 billion, reflecting a 6.2% improvement [10] - Earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8% [11] - The consensus estimates for 2026 earnings per share and revenues suggest increases of 11.4% and 9.4%, respectively, from the 2025 estimates [10] Group 3: Operational Efficiency - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.1% in the trailing 12 months, significantly higher than the industry average of 0.6% [12] - The company has effectively managed capital through share buybacks, dividend payments, and prudent investments, maintaining a free cash flow conversion of over 85% in recent quarters [18][19] Group 4: Market Position and Strategy - RGA is a leader in the traditional U.S. and Latin American markets, with a strong product line and capabilities that contribute to risk diversification [13] - In Canada, RGA is well-positioned with a sizable block of in-force business, anticipating long-term growth in longevity insurance [14] - The company is capitalizing on the growing demand for protection products among the emerging global middle class and aging populations [15] Group 5: Future Outlook - RGA's new business volumes, favorable longevity experience, diversified business model, and effective capital deployment are expected to support long-term growth [20] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [20] - The recommendation is to hold the stock, given its affordability and potential for future performance [21]

Core Viewpoint - Reinsurance Group of America (RGA) reported mixed financial results for the first quarter of 2025, with adjusted operating earnings per share beating estimates but overall revenues declining significantly year over year Financial Performance - Adjusted operating earnings were $5.66 per share, exceeding the Zacks Consensus Estimate by 6.2%, but down 6% from the previous year [1] - Operating revenues totaled $5.3 billion, missing estimates by 7% and declining 13.7% year over year due to higher net premiums and net investment income [2] - Net premiums increased by 23.9% year over year to $4 billion [2] - Investment income rose 13% from the prior year to $1.2 billion, although average investment yield decreased to 4.64% from 4.7% [3] - Total benefits and expenses decreased 19% year over year to $4.9 billion, attributed to lower claims and other policy benefits [3] Segment Performance - U.S. and Latin America segment reported pre-tax adjusted operating income of $207 million, up 5% year over year [4] - Traditional segment's pre-tax adjusted operating income increased 9.4% to $140 million, with net premiums rising 12% to $1.9 billion [4] - Financial Solutions segment's pre-tax adjusted operating income decreased 25.6% year over year to $67 million [5] - Canada segment's pre-tax adjusted operating income fell 18.9% to $43 million [5] - EMEA segment's pre-tax adjusted operating income dropped 65.2% to $140 million [7] - Asia/Pacific segment's pre-tax adjusted operating income decreased 1.8% to $165 million [8] Capital and Shareholder Returns - As of March 31, 2025, RGA's total assets were $128.2 billion, an 8% increase from the end of 2024 [11] - Book value per share increased 1.6% to $153.80 [11] - The company deployed $418 million into in-force block transactions in the first quarter [13] - A quarterly dividend of 89 cents was declared, payable on May 27 to shareholders of record as of May 13 [13] Future Outlook - RGA estimates adjusted operating return on equity (ROE) to be between 13% and 15%, indicating expectations of continued strong business fundamentals [12]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, including balance sheets, income, and cash flow statements, with detailed notes Condensed Consolidated Balance Sheet Highlights (in millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $128,210 | $118,675 | | Total Investments | $105,580 | $98,040 | | Cash and cash equivalents | $5,151 | $3,326 | | **Total Liabilities** | $116,718 | $107,769 | | Future policy benefits | $59,836 | $53,368 | | Long-term debt | $5,734 | $5,042 | | **Total Equity** | $11,492 | $10,906 | Condensed Consolidated Statement of Income Highlights (in millions) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $5,260 | $6,337 | | Net premiums | $4,019 | $5,376 | | Net investment income | $1,232 | $961 | | **Total Benefits and Expenses** | $4,891 | $6,065 | | **Income Before Income Taxes** | $369 | $272 | | **Net Income** | $288 | $212 | | **Diluted Earnings Per Share** | $4.27 | $3.16 | Condensed Consolidated Statement of Cash Flows Highlights (in millions) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,429 | $5,736 | | **Net cash used in investing activities** | $(1,695) | $(3,720) | | **Net cash provided by financing activities** | $2,067 | $1,005 | | **Change in cash and cash equivalents** | $1,825 | $2,965 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on earnings per share, equity changes, policy benefits, investment portfolio, derivatives, segment information, and recent financing activities - The company is engaged in providing traditional reinsurance (life, health, disability) and financial solutions (longevity, asset-intensive products, financial reinsurance, capital solutions, PRT, and stable value products)[17](index=17&type=chunk) Earnings Per Share (Q1 2025 vs Q1 2024) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Basic EPS | $4.33 | $3.20 | | Diluted EPS | $4.27 | $3.16 | - Total liability for future policy benefits increased to **$59.8 billion** as of March 31, 2025, from **$47.1 billion** as of March 31, 2024, driven by growth in both Traditional and Financial Solutions segments[48](index=48&type=chunk) - On March 3, 2025, the Company issued **$700 million** of 6.65% fixed-rate reset subordinated debentures due 2055 for general corporate purposes, including funding a pending reinsurance transaction[166](index=166&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, covering consolidated results, segment performance, liquidity, capital resources, and investment portfolio analysis - The company is a leading global provider of life reinsurance and financial solutions, with **$4.0 trillion** of life reinsurance in force and assets of **$128.2 billion** as of March 31, 2025[173](index=173&type=chunk) - In February 2025, RGA Reinsurance Company entered into a Master Transaction Agreement with subsidiaries of Equitable Holdings, Inc. to cede a **75% quota share** of in-force individual life insurance liabilities, representing **$32 billion** on a U.S. statutory basis; the transaction is expected to close mid-2025[140](index=140&type=chunk)[141](index=141&type=chunk) [Consolidated Results of Operations](index=53&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated income before taxes increased in Q1 2025 due to reduced claims and lower investment-related losses, despite a decrease in net premiums primarily from a prior-year PRT transaction Consolidated Results Summary (in millions) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net premiums | $4,019 | $5,376 | | Claims and other policy benefits | $3,822 | $5,132 | | Income before income taxes | $369 | $272 | | Adjusted operating income before income taxes | $485 | $516 | - The decrease in net premiums was primarily due to single premium pension risk transfer (PRT) transactions completed in 2024; excluding this, premiums increased due to organic growth and new business[194](index=194&type=chunk) - The decrease in investment related losses was due to lower unfavorable impacts from portfolio repositioning (**$51 million** loss in Q1'25 vs **$102 million** in Q1'24) and freestanding derivatives[183](index=183&type=chunk) [Results of Operations by Segment](index=57&type=section&id=Results%20of%20Operations%20by%20Segment) This section details segment performance, noting increased operating income in U.S. & Latin America Traditional and EMEA, while Canada and Asia Pacific were impacted by currency and underwriting factors respectively Adjusted Operating Income Before Income Taxes by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | U.S. and Latin America | $207 | $218 | | Canada | $43 | $53 | | Europe, Middle East and Africa | $140 | $115 | | Asia Pacific | $165 | $168 | | Corporate and Other | $(70) | $(38) | - U.S. & Latin America Traditional segment's adjusted operating income increased to **$140 million** from **$128 million** YoY due to new business growth[201](index=201&type=chunk)[202](index=202&type=chunk) - EMEA's adjusted operating income increased to **$140 million** from **$115 million** YoY, driven by increased net premiums and investment income[218](index=218&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with **$5.8 billion** in outstanding debt, an undrawn **$850 million** credit facility, no share repurchases in Q1 2025, and a declared quarterly dividend - The company has an **$850 million** syndicated revolving credit facility maturing in March 2028, with no cash borrowings or letters of credit outstanding as of March 31, 2025[253](index=253&type=chunk)[256](index=256&type=chunk) - The company did not repurchase any shares under its **$500 million** share repurchase program during Q1 2025; the entire amount remains available[249](index=249&type=chunk)[324](index=324&type=chunk) - In April 2025, the board of directors declared a quarterly dividend of **$0.89 per share**[252](index=252&type=chunk) [Investments](index=70&type=section&id=Investments) Total cash and invested assets grew to **$110.7 billion**, with **76.3%** in fixed maturity securities, **94.4%** investment grade, and an annualized investment yield of **4.64%** Portfolio Composition as of March 31, 2025 (in millions) | Asset Class | Amount | % of Total | | :--- | :--- | :--- | | Fixed maturity securities | $84,507 | 76.3% | | Mortgage loans | $9,331 | 8.4% | | Funds withheld at interest | $5,328 | 4.8% | | Cash and cash equivalents | $5,151 | 4.7% | | Other | $6,414 | 5.8% | | **Total** | **$110,731** | **100.0%** | - As of March 31, 2025, approximately **94.4%** of the total fixed maturity securities portfolio was investment grade[280](index=280&type=chunk)[286](index=286&type=chunk) Investment Yield (Excluding Spread Business) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Annualized investment yield | 4.64% | 4.70% | | Annualized investment yield excluding VII | 4.90% | 4.75% | [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As of March 31, 2025, there have been no material changes to the company's economic exposure to market risk or its Enterprise Risk Management function - There have been no material changes in the Company's economic exposure to market risk or its Enterprise Risk Management function from December 31, 2024[305](index=305&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[306](index=306&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[307](index=307&type=chunk) [PART II – OTHER INFORMATION](index=76&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=76&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory matters, but management does not anticipate a material adverse effect on its financial condition or results - Management does not believe that loss contingencies from pending legal, regulatory, and governmental matters will have a material adverse effect on the company's financial condition or results[308](index=308&type=chunk) [Risk Factors](index=76&type=section&id=Item%201A.%20Risk%20Factors) This section outlines new risk factors related to the pending Reinsurance Transaction, including completion risks, regulatory conditions, due diligence inaccuracies, counterparty reliance, and integration challenges - The pending Reinsurance Transaction with Equitable Holdings, Inc. is subject to closing conditions, including regulatory approvals, and may not be completed, which could negatively affect the company's business and financial results[309](index=309&type=chunk)[311](index=311&type=chunk) - Risks associated with the transaction include: potential for inaccurate assumptions regarding mortality, lapse, and investment returns; reliance on the counterparty for administration and asset management; and challenges in integrating the large block of business[315](index=315&type=chunk)[317](index=317&type=chunk)[321](index=321&type=chunk) - The company will rely on the counterparty for policy administration and investment advice, exposing it to risks from the counterparty's IT systems, cybersecurity, and operational performance[320](index=320&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares under its **$500 million** share repurchase program in Q1 2025, with the full authorization remaining available - The Company did not repurchase any shares of common stock under its share repurchase program in Q1 2025[323](index=323&type=chunk) - As of March 31, 2025, the entire **$500 million** authorized under the January 2024 share repurchase program remains available[324](index=324&type=chunk) [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - During Q1 2025, no directors or executive officers adopted or terminated any Rule 10b5-1(c) trading plan or any non-Rule 10b5-1 trading arrangement[326](index=326&type=chunk) [Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q report, including corporate governance documents, debt indentures, employee agreements, and CEO/CFO certifications - The report includes an index of exhibits, listing documents such as the Tenth Supplemental Indenture, forms of employee stock agreements, and CEO/CFO certifications[328](index=328&type=chunk)

Reinsurance Group of America (RGA) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Jeff Hopson - SVP - Investor RelationsTony Cheng - President & CEOAxel André - EVP & CFOJonathan Porter - EVP & Global Chief Risk OfficerElyse Greenspan - Managing DirectorLeslie Barbi - Executive VP & Chief Investment OfficerRyan Krueger - Managing DirectorThomas Gallagher - Senior Managing DirectorWilma Burdis - Director Conference Call Participants Suneet Kamath - Senior Research AnalystJohn Barnidge - ...

Reinsurance Group of America (RGA) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Speaker0 Good day, and welcome to Reinsurance Group of America First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press then 2. Please note that this event is being recorded. I would now like to t ...

Core Insights - Reinsurance Group (RGA) reported a revenue of $5.34 billion for Q1 2025, reflecting a year-over-year decline of 13.7% and an EPS of $5.66, down from $6.02 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $5.74 billion, resulting in a surprise of -6.97%, while the EPS exceeded the consensus estimate of $5.33 by 6.19% [1] Financial Performance Metrics - RGA's stock has returned -6.3% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3] - Key revenue metrics showed significant variances from analyst estimates, with net premiums from U.S. and Latin America Financial Solutions at $109 million, far below the average estimate of $612.75 million, while net premiums from U.S. and Latin America Traditional were $1.92 billion, slightly above the $1.83 billion estimate [4] - Other revenue categories also underperformed against analyst expectations, with total revenues from net premiums at $4.02 billion, a decline of 25.2% year-over-year, and other revenues at $88 million, down 40.9% year-over-year [4]

分组1 - Reinsurance Group (RGA) reported quarterly earnings of $5.66 per share, exceeding the Zacks Consensus Estimate of $5.33 per share, but down from $6.02 per share a year ago, representing an earnings surprise of 6.19% [1] - The company posted revenues of $5.34 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.97%, and down from $6.19 billion year-over-year [2] - Over the last four quarters, RGA has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - RGA shares have declined approximately 12.3% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $5.74 on revenues of $5.88 billion, and for the current fiscal year, it is $22.80 on revenues of $24.34 billion [7] - The Zacks Industry Rank for Insurance - Life Insurance is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for the sector [8]