RGA(US:RGA)2025-08-01 17:43PART I – FINANCIAL INFORMATION Financial Statements (Unaudited) The unaudited financial statements show significant asset growth to $133.5 billion, driven by investments, with a rise in six-month net income despite a slight Q2 decline Condensed Consolidated Balance Sheets The balance sheet reflects substantial growth in total assets to $133.5 billion, primarily from increased investments and corresponding liabilities Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Total investments | $109,901 | $98,040 | | Cash and cash equivalents | $5,416 | $3,326 | | Total assets | $133,479 | $118,675 | | Liabilities | | | | Future policy benefits | $63,531 | $53,368 | | Interest-sensitive contract liabilities | $37,158 | $35,095 | | Long-term debt | $5,734 | $5,042 | | Total liabilities | $121,336 | $107,769 | | Equity | | | | Total RGA, Inc. shareholders' equity | $12,053 | $10,816 | | Total equity | $12,143 | $10,906 | Condensed Consolidated Statements of Income The income statement details a year-over-year increase in six-month net income, despite lower net premiums and a quarterly profit dip Condensed Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net premiums | $4,151 | $3,920 | $8,170 | $9,296 | | Net investment income | $1,408 | $1,082 | $2,640 | $2,043 | | Total revenues | $5,599 | $4,878 | $10,859 | $11,215 | | Total benefits and expenses | $5,258 | $4,609 | $10,149 | $10,674 | | Income before income taxes | $341 | $269 | $710 | $541 | | Net income available to RGA, Inc. shareholders | $180 | $203 | $466 | $413 | | Diluted earnings per share | $2.70 | $3.03 | $6.97 | $6.19 | Condensed Consolidated Statements of Cash Flows Cash flow statements indicate a significant decrease in operating cash flow, offset by lower cash used in investing activities Condensed Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,249 | $6,703 | | Net cash used in investing activities | $(2,872) | $(7,176) | | Net cash provided by financing activities | $2,607 | $2,225 | | Change in cash and cash equivalents | $2,090 | $1,626 | | Cash and cash equivalents, end of period | $5,416 | $4,596 | Notes to Condensed Consolidated Financial Statements These notes clarify the company's business scope and confirm the financial statements adhere to U.S. GAAP for interim reporting - The Company is an insurance holding company providing traditional reinsurance (life, health, disability, critical illness) and financial solutions (longevity, asset-intensive products, financial reinsurance, capital solutions, PRT, stable value products)18 - The financial statements are prepared in conformity with U.S. GAAP for interim reporting and should be read with the 2024 Annual Report on Form 10-K19 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) MD&A details decreased adjusted operating income due to unfavorable claims, offset by investment gains, and highlights a major upcoming reinsurance transaction - The company is a leading global provider of life reinsurance and financial solutions, with $4.1 trillion of life reinsurance in force and assets of $133.5 billion as of June 30, 2025185 - On July 31, 2025, RGA Re executed a significant reinsurance transaction with subsidiaries of Equitable Holdings, Inc., assuming a 75% quota share of approximately $32 billion in U.S. statutory individual life insurance liabilities, which is estimated to add $11 billion to $12 billion in assets and liabilities149181 Reconciliation of Income Before Income Taxes to Adjusted Operating Income (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income before income taxes | $341 | $269 | $710 | $541 | | Adjustments | $80 | $222 | $196 | $466 | | Adjusted operating income before income taxes | $421 | $491 | $906 | $1,007 | Consolidated Results of Operations Consolidated results show higher pre-tax income due to lower investment losses, though adjusted operating income declined from unfavorable claims experience - For the six months ended June 30, 2025, pre-tax income increased to $710 million from $541 million year-over-year, driven by a decrease in investment-related losses and the non-recurrence of a large non-economic loss from a PRT transaction in 2024195 - Adjusted operating income before tax decreased for both the three and six-month periods ended June 30, 2025, primarily due to unfavorable claims experience in the U.S. Traditional segment and higher operating costs, partially offset by increased investment income205207 - Net premiums decreased for the six-month period due to large single-premium Pension Risk Transfer (PRT) transactions in 2024, however, life reinsurance in force grew to $4.1 trillion from $3.8 trillion year-over-year209 Results of Operations by Segment Segment results reveal mixed performance, with a significant decline in the U.S. & Latin America segment offset by strong growth in