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

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

Core Viewpoint - Reinsurance Group (RGA) reported quarterly earnings of $4.72 per share, missing the Zacks Consensus Estimate of $5.58 per share, representing an earnings surprise of -15.41% [1][2] Financial Performance - The company posted revenues of $5.64 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.09%, compared to year-ago revenues of $5.15 billion [2] - Over the last four quarters, RGA has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - RGA shares have lost about 10.8% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current status translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $6.04 on $6.05 billion in revenues, and for the current fiscal year, it is $23.10 on $23.33 billion in revenues [7] - The estimate revisions trend for RGA was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Insurance - Life Insurance industry is currently in the top 10% of the Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially impact stock performance [5][8]

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

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

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]