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)

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% for the quarter, indicating a strong start to the year [7][24] - The pretax adjusted operating income for the quarter was $485 million, with a favorable economic impact from biometric claims experience amounting to $196 million [24][29] - Consolidated net premiums increased by 13% year over year, with traditional business premium growth at 11.2% on a constant currency basis [28][29] 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 [10][25] - The U.S. and Latin America Traditional segments reported favorable individual life claims experience, driven by lower than expected large claims [33] - The Asia Traditional segment experienced strong new treaties, with significant contributions from the Creation Re product development initiatives [11][12] Market Data and Key Metrics Changes - The Hong Kong life insurance market achieved record sales in 2024, increasing over 21% from 2023, driven by factors such as the aging population and high net worth management [13] - The U.S. market showed strong claims experience, particularly due to lower than expected large claims, while favorable economic experience was noted across all geographic regions [30][33] - The U.K. market is expected to see strong levels of PRT sales, with local teams positioned to leverage their expertise [17][18] Company Strategy and Development Direction - The company emphasizes its biometric expertise as a key differentiator in pricing, underwriting, and risk management, which has led to strong claims experience [9][20] - The strategic focus on the Creation Re model aims to foster exclusive partnerships and innovative product development, contributing to a significant portion of new business [12][20] - The company remains optimistic about its growth prospects, citing a disciplined approach to risk management and capital allocation [22][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties without losing momentum, highlighting a strong capital position and asset portfolio [8][22] - The company anticipates a recovery in the PRT market in the second half of the year, viewing current market volatility as a temporary pause [59] - Management remains committed to disciplined capital management and strategic partnerships to drive future growth [22][39] Other Important Information - The effective tax rate for the quarter was 21.9%, below the expected range, primarily due to U.S. tax benefits from foreign taxes paid [27] - The company reported a non-spread portfolio yield of 4.9%, up 10 basis points from the previous quarter, while variable investment income was below expectations by approximately $30 million [25][37] - Book value per share increased to $154.6, representing a compounded annual growth rate of 9.8% since the beginning of 2021 [38] Q&A Session Summary Question: Understanding mortality experience in the U.S. - Management noted that the strong claims experience was driven by lower than expected large claims, with some volatility expected in smaller claims consistent with an elevated flu season [42][43] Question: Clarification on the Equitable deal and its potential for ROE - Management explained that the transaction allows for repricing based on extensive data and experience, which is expected to enhance returns despite the challenges faced by Equitable [48][49] Question: Current pipeline of transactions and opportunities - Management described the pipeline as attractive, emphasizing the quality of partnerships and the strategic fit within their business model [54][55] Question: Trends in new money rates and investment opportunities - Management indicated that new money rates have remained stable, with ongoing opportunities in both public and private asset markets [62][66] Question: Competitive conditions across various markets - Management stated that competition remains manageable, with a consistent focus on life and health reinsurance, unaffected by fluctuations in the P&C market [72][80]

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]