Financial Data and Key Metrics Changes - The company reported adjusted operating earnings of $5.66 per share, with an adjusted operating return on equity of 15% [6][22] - The pretax adjusted operating income for the quarter was $485 million [22] - Economic claims experience was favorable by $196 million, with a corresponding financial impact of $58 million [23][26] - Consolidated net premiums increased by 13% year over year, with traditional business premium growth at 11.2% on a constant currency basis [25][30] Business Line Data and Key Metrics Changes - In force transactions saw $418 million of capital deployed, including a significant deal with Manulife and two smaller transactions in Asia [9][30] - The U.S. Traditional results reflected favorable individual life claims experience driven by lower than expected large claims [30] - Asia Traditional had a strong quarter with new treaties, particularly benefiting from Creation Re product development initiatives [10][12] - The U.S. Financial Solutions results were at the low end of expectations due to lower variable investment income [30] Market Data and Key Metrics Changes - The Hong Kong life insurance market achieved record sales in 2024, increasing over 21% from 2023 [12] - The U.S. market showed strong performance, particularly in mortality claims, with favorable experience across all regions [26][30] - The UK market is expected to see strong levels of PRT sales, with local teams providing a competitive edge [15][16] Company Strategy and Development Direction - The company emphasizes its biometric expertise as a key differentiator in pricing, underwriting, and risk management [8][19] - The Creation Re strategy focuses on exclusive partnerships to deliver new products and create value for clients [10][19] - The company aims to enhance ROE and earnings through balance sheet optimization and disciplined capital management [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties without losing momentum [7][21] - The company remains optimistic about growth opportunities and the ability to deliver attractive ROEs [21][36] - Management noted that the current period of market uncertainty is expected to be temporary, with a bullish outlook for the PRT market in the medium to long term [56] Other Important Information - The effective tax rate for the quarter was 21.9%, below the expected range due to U.S. tax benefits [24] - The company reported a book value per share of $154.6, representing a compounded annual growth rate of 9.8% since the beginning of 2021 [35] Q&A Session Summary Question: Understanding mortality experience in the U.S. - Management noted that large positive experience was driven by lower than expected large claims, with some volatility expected in claims experience [39][40] Question: Clarification on the Equitable deal and its potential for returns - Management explained that the transaction allows for repricing and benefits from extensive data and experience, which will help manage volatility [46][48] Question: Current pipeline of transactions and opportunities - Management described the pipeline as attractive, emphasizing the quality of partnerships and alignment with strategic goals [50][52] Question: Outlook for mortality and impact of GLP-1 drugs - Management reported a positive trend in excess mortality rates and expressed optimism regarding the potential benefits of GLP-1 drugs [120]

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]

Financial Performance - Adjusted operating income, excluding notable items, was $5.66 per diluted share[15] - The trailing twelve-month adjusted operating ROE, excluding notable items, was 15.0%[15] - The company reported a total adjusted operating income before taxes of $485 million for 1Q25[20] Premium Growth - Traditional premium growth was 11.2% year-to-date on a constant currency basis[15] - Total traditional premiums reached $3.557 billion in 1Q25, a 9.6% increase compared to $3.245 billion in 1Q24[23] - Global Financial Solutions premiums decreased by 78.3%, from $2.131 billion in 1Q24 to $462 million in 1Q25, primarily due to single premium pension risk transfer transactions[23] Capital Management - The company estimates deployable capital of $1.3 billion[15] - Estimated excess capital is $1.9 billion[15] - The company issued $0.7 billion of subordinated debentures at favorable pricing[15] Investment Portfolio - The non-spread new money rate on investments was 6.39%[15] - Over 94% of fixed maturity securities are rated investment-grade[29] - Assets under management are approximately $111 billion[29]

[Consolidated Financials](index=3&type=section&id=Consolidated) This section details the company's consolidated financial performance, encompassing key highlights, GAAP income statements, and balance sheet positions [Financial Highlights](index=3&type=section&id=Financial%20Highlights) The company's Q1 2025 financial highlights show a mixed performance with a decrease in net premiums and adjusted operating income year-over-year, but an increase in net income available to shareholders and significant growth in book value per share and assumed life reinsurance in force Consolidated Financial Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $4,019 | $5,376 | $(1,357) | | Net income available to RGA's shareholders | $286 | $210 | $76 | | Adjusted operating income | $378 | $401 | $(23) | | Diluted earnings per share (Net income) | $4.27 | $3.16 | $1.11 | | Diluted earnings per share (Adjusted operating income) | $5.66 | $6.02 | $(0.36) | | Book value per share | $172.53 | $143.92 | $28.61 | | Assumed life reinsurance in force (in billions) | $3,950.9 | $3,729.8 | $221.1 | | Assumed new business production (in billions) | $131.7 | $109.1 | $22.6 | [Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)](index=4&type=section&id=Consolidated%20GAAP%20Income%20Statements%20(including%20Adjusted%20Operating%20Income%20Reconciliations)) The consolidated GAAP income statement for Q1 2025 shows a decrease in total revenues primarily due to lower net premiums, but an increase in net investment income. Despite a decline in adjusted operating income before income taxes, GAAP income before income taxes improved year-over-year Consolidated GAAP Income Statement Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total revenues | $5,260 | $6,337 | $(1,077) | | Net investment income | $1,232 | $961 | $271 | | Total benefits and expenses | $4,891 | $6,065 | $(1,174) | | Income before income taxes | $369 | $272 | $97 | | Adjusted operating income before income taxes | $485 | $516 | $(31) | | Foreign currency effect on Net premiums | $(60) | $(12) | $(48) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's consolidated balance sheet reflects significant growth in total assets and total investments compared to the prior year, driven by an increase in fixed maturity securities. Total liabilities also increased, while cash and cash equivalents saw a slight decrease Consolidated Balance Sheet Highlights (March 31, 2025 vs. March 31, 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total assets | $128,210 | $106,000 | $22,210 | | Total investments | $105,580 | $84,514 | $21,066 | | Cash and cash equivalents | $5,151 | $5,935 | $(784) | | Total liabilities | $116,718 | $96,442 | $20,276 | | Total RGA, Inc. shareholders' equity | $11,402 | $9,468 | $1,934 | [Segment Summaries of Adjusted Operating Income Statements](index=7&type=section&id=Segment%20Summaries%20of%20Adjusted%20Operating%20Income%20Statements) This section provides a detailed breakdown of adjusted operating income performance across the company's diverse geographic and business segments [U.S. and Latin America Traditional](index=7&type=section&id=U.S.%20and%20Latin%20America%20Traditional) The U.S. and Latin America Traditional segment reported an increase in net premiums and adjusted operating income before income taxes in Q1 2025 compared to the prior year, despite a slight rise in the loss ratio. Assumed life reinsurance in force also grew significantly U.S. and Latin America Traditional Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $1,921 | $1,715 | $206 | | Adjusted operating income before income taxes | $140 | $128 | $12 | | Loss ratio | 91.0% | 90.4% | 0.6% | | Assumed Life Reinsurance In Force (in billions) | $1,840.6 | $1,709.1 | $131.5 | [U.S. and Latin America Financial Solutions](index=8&type=section&id=U.S.%20and%20Latin%20America%20Financial%20Solutions) The U.S. and Latin America Financial Solutions segment experienced a substantial decrease in net premiums in Q1 2025, leading to a decline in adjusted operating income before income taxes. However, policyholder account balances for fixed annuities and payout annuities showed growth U.S. and Latin America Financial Solutions Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $109 | $1,916 | $(1,807) | | Adjusted operating income before income taxes | $67 | $90 | $(23) | | Fixed annuities (deferred) account balances | $10,299 | $9,981 | $318 | | Payout annuities (Future policy benefits) | $8,840 | $6,503 | $2,337 | [Canada Traditional](index=10&type=section&id=Canada%20Traditional) The Canada Traditional segment saw stable net premiums but a decrease in adjusted operating income before income taxes in Q1 2025, accompanied by an increase in the loss ratio. Assumed life reinsurance in force slightly declined Canada Traditional Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $319 | $318 | $1 | | Adjusted operating income before income taxes | $32 | $46 | $(14) | | Loss ratio | 93.4% | 88.1% | 5.3% | | Assumed Life Reinsurance In Force (in billions) | $478.6 | $488.0 | $(9.4) | [Canada Financial Solutions](index=11&type=section&id=Canada%20Financial%20Solutions) The Canada Financial Solutions segment demonstrated strong growth in Q1 2025, with significant increases in both net premiums and adjusted operating income before income taxes. Assumed life reinsurance in force also saw a substantial increase Canada Financial Solutions Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $52 | $23 | $29 | | Adjusted operating income before income taxes | $11 | $7 | $4 | | Assumed Life Reinsurance In Force (in billions) | $6.0 | $0 | $6.0 | [Europe, Middle East and Africa Traditional](index=12&type=section&id=Europe%2C%20Middle%20East%20and%20Africa%20Traditional) The Europe, Middle East and Africa Traditional segment reported growth in net premiums and adjusted operating income before income taxes in Q1 2025. The loss ratio increased, while assumed life reinsurance in force also expanded EMEA Traditional Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $540 | $496 | $44 | | Adjusted operating income before income taxes | $50 | $38 | $12 | | Loss ratio | 88.0% | 84.5% | 3.5% | | Assumed Life Reinsurance In Force (in billions) | $1,036.7 | $985.1 | $51.6 | [Europe, Middle East and Africa Financial Solutions](index=13&type=section&id=Europe%2C%20Middle%20East%20and%20Africa%20Financial%20Solutions) The Europe, Middle East and Africa Financial Solutions segment showed positive performance in Q1 2025, with increases in both net premiums and adjusted operating income before income taxes compared to the prior year EMEA Financial Solutions Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $189 | $146 | $43 | | Adjusted operating income before income taxes | $90 | $77 | $13 | [Asia Pacific Traditional](index=14&type=section&id=Asia%20Pacific%20Traditional) The Asia Pacific Traditional segment reported an increase in net premiums in Q1 2025, but a slight decrease in adjusted operating income before income taxes. The loss ratio increased, while assumed life reinsurance in force continued to grow Asia Pacific Traditional Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $777 | $716 | $61 | | Adjusted operating income before income taxes | $106 | $109 | $(3) | | Loss ratio | 84.0% | 82.0% | 2.0% | | Assumed Life Reinsurance In Force (in billions) | $561.1 | $528.9 | $32.2 | [Asia Pacific Financial Solutions](index=15&type=section&id=Asia%20Pacific%20Financial%20Solutions) The Asia Pacific Financial Solutions segment achieved substantial growth in net premiums in Q1 2025, with adjusted operating income before income taxes remaining stable year-over-year. Assumed life reinsurance in force also saw a significant increase Asia Pacific Financial Solutions Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net premiums | $112 | $46 | $66 | | Adjusted operating income before income taxes | $59 | $59 | $0 | | Assumed Life Reinsurance In Force (in billions) | $18.4 | $8.5 | $9.9 | [Corporate and Other](index=16&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported an increased adjusted operating loss before income taxes in Q1 2025 compared to the prior year Corporate and Other Segment Highlights (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Adjusted operating loss before income taxes | $(70) | $(38) | $(32) | [Summary of Segment Adjusted Operating Income](index=17&type=section&id=Summary%20of%20Segment%20Adjusted%20Operating%20Income) A consolidated view of adjusted operating income before income taxes across all segments shows a slight decrease in total consolidated adjusted operating income before income taxes in Q1 2025. While EMEA segments saw growth, U.S. & Latin America, Canada, and Asia Pacific segments experienced slight declines Summary of Segment Adjusted Operating Income Before Income Taxes (Q1 2025 vs. Q1 2024) | Segment | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | U.S. and Latin America | $207 | $218 | $(11) | | Canada | $43 | $53 | $(10) | | Europe, Middle East and Africa | $140 | $115 | $25 | | Asia Pacific | $165 | $168 | $(3) | | Corporate and Other | $(70) | $(38) | $(32) | | **Consolidated adjusted operating income before income taxes** | **$485** | **$516** | **$(31)** | [Investments](index=18&type=section&id=Investments) This section details the company's investment portfolio, encompassing cash and invested assets, fixed maturity securities, and related gains and losses [Cash and Invested Assets and Investment Income and Yield Summary](index=18&type=section&id=Cash%20and%20Invested%20Assets%20and%20Investment%20Income%20and%20Yield%20Summary) Total cash and invested assets increased significantly in Q1 2025, primarily driven by growth in fixed maturity securities. Net investment income also rose, although the overall annualized investment yield slightly decreased, while the yield excluding variable investment income improved Cash and Invested Assets & Investment Income Summary (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total cash and invested assets | $110,731 | $90,449 | $20,282 | | Fixed maturity securities, available-for-sale | $84,507 | $65,827 | $18,680 | | Net investment income | $502 | $444 | $58 | | Annualized investment yield | 4.64% | 4.70% | (6) bps | | Annualized investment yield excluding VII | 4.90% | 4.75% | 15 bps | [Fixed Maturity Securities](index=19&type=section&id=Fixed%20Maturity%20Securities) The company's fixed maturity securities portfolio, primarily available-for-sale, grew in fair value as of March 31, 2025. Corporate securities remain the largest component, and total unrealized losses saw a slight increase Fixed Maturity Securities (Fair Value) (March 31, 2025 vs. Dec 31, 2024) | Category | March 31, 2025 (USD millions) | Dec 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total fixed maturity securities | $84,507 | $77,617 | $6,890 | | Corporate | $55,720 | $50,991 | $4,729 | | Total unrealized losses | $6,447 | $6,393 | $54 | - Corporate securities constitute **65.9%** of total fixed maturity securities as of March 31, 2025[65](index=65&type=chunk) [Corporate Fixed Maturity Securities by Industry](index=20&type=section&id=Corporate%20Fixed%20Maturity%20Securities%20by%20Industry) Corporate fixed maturity securities increased in fair value, with the Industrials sector maintaining the largest allocation, followed by Financial Institutions. The overall average credit rating for corporate fixed maturity securities remained strong at A- Corporate Fixed Maturity Securities by Industry (Fair Value) (March 31, 2025 vs. Dec 31, 2024) | Industry | March 31, 2025 (USD millions) | Dec 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total corporate fixed maturity securities | $55,720 | $50,991 | $4,729 | | Industrials | $28,958 | $26,476 | $2,482 | | Financial institutions | $17,470 | $16,673 | $797 | | Utilities | $9,292 | $7,842 | $1,450 | - The Industrials sector represents **52.0%** of total corporate fixed maturity securities, and the overall average credit rating is **A-** as of March 31, 2025[67](index=67&type=chunk) [Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities](index=21&type=section&id=Ratings%20of%20Fixed%20Maturity%20Securities%20and%20Structured%20Fixed%20Maturity%20Securities) The company's fixed maturity securities portfolio maintains a high credit quality, with investment-grade securities (AAA/AA/A and BBB) accounting for the vast majority. Structured fixed maturity securities, including CLOs, also form a notable part of the portfolio Ratings of Fixed Maturity Securities (Fair Value) (March 31, 2025) | Rating (Agency Designation) | Fair Value (USD millions) | % of Total | | :--------------------------------- | :----------------------------- | :---------- | | AAA/AA/A | $54,839 | 64.9% | | BBB | $24,946 | 29.5% | | BB | $3,849 | 4.6% | | B | $639 | 0.8% | | CCC | $216 | 0.2% | | In or near default | $18 | —% | | **Total** | **$84,507** | **100.0%** | Structured Fixed Maturity Securities (Fair Value) (March 31, 2025) | Category | Fair Value (USD millions) | % of Total | | :--------------------------------- | :----------------------------- | :---------- | | Total ABS | $5,520 | 59.4% | | CLOs | $2,251 | 24.2% | | CMBS | $2,267 | 24.4% | | Total RMBS | $1,502 | 16.2% | | **Total Structured Fixed Maturity Securities** | **$9,289** | **100.0%** | [Fixed Maturity Securities Below Amortized Cost](index=22&type=section&id=Fixed%20Maturity%20Securities%20Below%20Amortized%20Cost) The total estimated fair value of fixed maturity securities below amortized cost slightly decreased in Q1 2025, while gross unrealized losses saw a minor increase. The majority of these unrealized losses are associated with investment-grade securities and have a duration of 12 months or greater Fixed Maturity Securities Below Amortized Cost (March 31, 2025 vs. Dec 31, 2024) | Metric | March 31, 2025 (USD millions) | Dec 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total fixed maturity securities below amortized cost (Estimated Fair Value) | $49,268 | $49,888 | $(620) | | Total gross unrealized losses | $6,444 | $6,384 | $60 | | Investment grade securities (Gross Unrealized Losses) | $6,341 | $6,283 | $58 | | Gross Unrealized Losses (Equal to or greater than 12 months) | $5,844 | $5,556 | $288 | [Consolidated Investment Related Gains and Losses](index=24&type=section&id=Consolidated%20Investment%20Related%20Gains%20and%20Losses) The company reported a reduction in net investment-related losses in Q1 2025 compared to the prior year, driven by lower net losses on fixed maturity securities and derivatives. This improvement was partially offset by other investment-related items Consolidated Investment Related Gains and Losses (Q1 2025 vs. Q1 2024) | Metric | March 31, 2025 (USD millions) | March 31, 2024 (USD millions) | Change (USD millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total investment related gains (losses), net | $(79) | $(149) | $70 | | Net losses on fixed maturity securities available-for-sale | $(57) | $(122) | $65 | | Net gains (losses) on total derivatives | $(13) | $(22) | $9 | [Appendix](index=25&type=section&id=Appendix) This section provides supplementary information, including reconciliations of GAAP to non-GAAP measures and detailed non-GAAP disclosures [Reconciliations of GAAP to Non-GAAP Measures](index=25&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations from GAAP income before income taxes to adjusted operating income before income taxes for each segment and on a consolidated basis. It also includes reconciliations of RGA, Inc. shareholders' equity and book value per share to their respective non-GAAP measures excluding AOCI - The reconciliations illustrate the adjustments made to GAAP figures to arrive at non-GAAP measures, primarily by excluding investment and derivative gains/losses, market risk benefits remeasurement, changes in fair value of funds withheld embedded derivatives, and notable items (e.g., actuarial assumption changes)[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) RGA, Inc. Shareholders' Equity Reconciliation (March 31, 2025) | Metric | Amount (USD millions) | | :--------------------------------- | :-------------------- | | RGA, Inc. shareholders' equity | $11,402 | | Less effect of AOCI | $(1,238) | | RGA, Inc. shareholders' equity, excluding AOCI | $10,164 | Book Value Per Share Reconciliation (March 31, 2025) | Metric | Amount | | :--------------------------------- | :----- | | Book value per share | $172.53 | | Less effect of AOCI | $(18.73) | | Book value per share, excluding AOCI | $153.80 | | Less effect of B36 | $(0.80) | | Book value per share, excluding AOCI and B36 | $154.60 | [Non-GAAP Disclosures](index=30&type=section&id=Non-GAAP%20Disclosures) This section clarifies the company's rationale for using non-GAAP financial measures, stating they provide a clearer view of operating performance by excluding volatile or non-recurring items. It defines key non-GAAP metrics such as adjusted operating income, adjusted operating revenue, shareholders' equity excluding AOCI, and adjusted operating return on equity - The company uses non-GAAP financial measures to better reflect ongoing profitability, assist in resource allocation, and provide a clearer understanding of underlying business trends by excluding specified items not indicative of ongoing operating performance[99](index=99&type=chunk) - Key non-GAAP measures include: - **Adjusted operating income:** Excludes net investment related gains/losses, changes in fair value of certain embedded derivatives, market risk benefits remeasurement, non-economic losses from pension risk transfer, discontinued operations, accounting changes, certain tax-related items, and other non-ongoing operational items - **Adjusted operating income excluding notable items:** Further excludes items like the financial impact of actuarial assumption reviews - **Adjusted operating revenue:** Excludes net realized capital gains/losses and changes in fair value of certain embedded derivatives - **Shareholders' equity excluding AOCI:** Excludes AOCI-related items (e.g., changes in interest rates, credit spreads, discount rates, market risk benefits, foreign currency fluctuations) that are volatile and not permanent - **Adjusted operating return on equity:** Calculated as adjusted operating income divided by average shareholders' equity excluding AOCI[101](index=101&type=chunk)[102](index=102&type=chunk)[105](index=105&type=chunk)

Core Insights - Reinsurance Group (RGA) is expected to report quarterly earnings of $5.33 per share, reflecting an 11.5% decline year-over-year, with revenues forecasted at $5.74 billion, a decrease of 7.3% compared to the previous year [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Key Metrics Analysis - Analysts predict 'Revenues- Net premiums' to reach $4.32 billion, indicating a year-over-year decline of 19.7% [4] - 'Revenues- Other revenues' is estimated at $116.68 million, suggesting a decrease of 21.7% year-over-year [4] Pre-tax Adjusted Operating Income Estimates - 'Pre-tax adjusted operating income (loss)- Total Asia Pacific' is estimated at $165.54 million, down from $168 million in the same quarter last year [5] - 'Pre-tax adjusted operating income (loss)- Total Canada' is projected at $48.82 million, compared to $53 million in the previous year [5] - 'Pre-tax adjusted operating income (loss)- Total U.S. and Latin America' is expected to be $196.97 million, down from $218 million year-over-year [6] - 'Pre-tax adjusted operating income (loss)- Total EMEA' is estimated at $107.23 million, compared to $115 million last year [6] - 'Pre-tax adjusted operating income (loss)- Asia Pacific Traditional' is projected at $87.78 million, down from $109 million [7] - 'Pre-tax adjusted operating income (loss)- Asia Pacific Financial Solutions' is expected to reach $75.60 million, up from $59 million [7] - 'Pre-tax adjusted operating income (loss)- EMEA Traditional' is forecasted at $20.96 million, down from $38 million [8] - 'Pre-tax adjusted operating income (loss)- Canada Financial Solutions' is projected at $14.83 million, compared to $7 million last year [8] - 'Pre-tax adjusted operating income (loss)- Canada Traditional' is estimated at $35.59 million, down from $46 million [9] - 'Pre-tax adjusted operating income (loss)- U.S. and Latin America- Traditional' is expected to be $127.24 million, up from $90 million year-over-year [9] Stock Performance - RGA shares have shown a return of -4% over the past month, slightly better than the Zacks S&P 500 composite's -4.3% change, with a Zacks Rank of 3 (Hold) indicating expected performance in line with the overall market [10]

Company Overview - Reinsurance Group (RGA) is headquartered in Chesterfield and operates in the Finance sector, specifically in reinsurance [3] - The company's stock has experienced a price decline of 19.3% year-to-date [3] Dividend Information - RGA currently pays a dividend of $0.89 per share, resulting in a dividend yield of 2.07%, which is higher than the Insurance - Life Insurance industry's yield of 1.47% and the S&P 500's yield of 1.73% [3] - The annualized dividend of $3.56 represents a 2.3% increase from the previous year, with an average annual increase of 6.02% over the past five years [4] - The current payout ratio for RGA is 16%, indicating that the company pays out 16% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for RGA's earnings in 2025 is $22.84 per share, reflecting a year-over-year earnings growth rate of 1.20% [5] Investment Considerations - RGA is positioned as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Core Viewpoint - Reinsurance Group of America (RGA) shares are trading at a discount compared to the industry average, indicating potential investment opportunities due to its strong fundamentals and growth prospects [1][2]. Financial Metrics - RGA has a market capitalization of $13.09 billion and a forward price-to-book value of 1.2X, lower than the industry average of 1.83X, the Finance sector's 4.05X, and the S&P 500 Composite's 7.89X [1][2]. - The average trading volume over the last three months was 0.5 million shares [2]. Price Performance - RGA's shares have gained 2.4% over the past year, underperforming the industry growth of 13.8%, the Finance sector's return of 15.4%, and the S&P 500 composite's appreciation of 8.1% [3]. Earnings Surprise History - RGA has a solid earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 14.67% [4]. Growth Projections - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 1.8%, with revenues projected at $24.22 billion, reflecting a 7.3% improvement [5]. - For 2026, earnings per share and revenues are expected to increase by 8.6% and 8.7%, respectively, from the 2024 estimates [5]. Historical Earnings Growth - RGA's earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8% [6]. Return on Invested Capital - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.3% in the trailing 12 months, significantly higher than the industry average of 0.6% [7]. Market Position and Strategy - RGA is a leader in the U.S. and Latin American markets, with a strong product line and capabilities that contribute to stable earnings and capital generation [10]. - In Canada, RGA holds a significant block of in-force business, which is expected to drive future earnings, particularly in longevity insurance [11]. - The company is well-capitalized and plans to deploy capital in attractive growth opportunities while returning excess capital to shareholders [12][14]. Technological Integration - RGA is enhancing its product offerings through technological advancements and is recognized as a global leader in biometric liability reinsurance [13]. Capital Management - The company effectively manages capital through share buybacks, dividends, and prudent investments, aiming to balance growth opportunities with shareholder returns [14]. Long-term Outlook - RGA's diversified business model, favorable longevity experience, and effective capital deployment strategies position it well for long-term growth [15].

Group 1 - Reinsurance Group of America (RGA) shares have declined 15% from their highs following disappointing quarterly results [1] - The company has experienced more volatile operating results, with a particularly disappointing Q4 [1]

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 1.21X, lower than the industry average of 1.9X and the S&P 500 composite's 7.82X [1] Group 1: Financial Performance - RGA has a market capitalization of $13.19 billion and an average trading volume of 0.5 million shares over the last three months [1] - RGA's shares have gained 14.1% over the past year, underperforming the industry's growth of 18.3% and the Finance sector's return of 21.8% [3] - The company has a decent earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 14.67% [4] - Earnings have grown 15.3% over the past five years, outperforming the industry average of 6.4% [6] - The Zacks Consensus Estimate for RGA's 2024 earnings per share indicates a year-over-year increase of 1.4%, with revenues projected at $22.60 billion, reflecting a 0.2% improvement [5] Group 2: Growth and Efficiency - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.3% in the trailing 12 months, significantly higher than the industry average of 0.6% [7] - The consensus estimates for 2025 earnings per share and revenues indicate increases of 7.2% and 7%, respectively, from the 2024 estimates [5] Group 3: 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 stable earnings and capital generation [10] - In Canada, RGA is a market leader with a significant block of in-force business, which is a key source of future earnings [11] - The company is well-capitalized and plans to deploy capital in attractive growth opportunities while returning excess capital to shareholders [12][14] - RGA is ramping up technological inclusion in its products and has maintained a free cash flow conversion of over 85% in recent quarters [13] Group 4: Long-term Outlook - Factors such as new business volumes, favorable longevity experience, and effective capital deployment are expected to favor RGA in the long term [15] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [15]