RGA(RGA) - 2025 Q4 - Annual Results

Financial Performance - Net premiums for Q4 2025 were $4,156 million, a decrease of $624 million compared to Q4 2024[7] - Net income available to RGA's shareholders for Q4 2025 was $463 million, up from $253 million in Q4 2024, representing a 83% increase[7] - Adjusted operating income for Q4 2025 was $515 million, compared to $310 million in Q4 2024, reflecting a 66% increase[7] - Return on equity for Q4 2025 was 9.7%, up from 7.4% in Q4 2024[7] - Basic earnings per share for Q4 2025 were $7.07, compared to $3.85 in Q4 2024, marking an 83% increase[7] - Total revenues for the three months ended December 31, 2025, increased to $6,635 million, up 22.4% from $5,241 million in the prior year quarter[9] - Net investment income reached $1,691 million, reflecting a significant increase of 42.8% from $1,185 million year-over-year[9] - Adjusted operating income before income taxes was $676 million, up 29.0% from $431 million in the prior year quarter[11] - The year-to-date net income attributable to RGA was $1,182 million, an increase of 64.8% from $717 million in the previous year[11] - The company reported a year-to-date adjusted operating income of $2.116 billion, an increase of $170 million from $1.946 billion in the prior year[55] Shareholder Returns - Total returned to shareholders in Q4 2025 was $111 million, down from $136 million in Q4 2024[7] - Shareholders' dividends paid in Q4 2025 were $61 million, consistent with Q4 2024[7] - RGA, Inc. shareholders' equity as of December 31, 2025, was $13,461 million, an increase from $10,816 million as of December 31, 2024, reflecting a 24.4% growth[94] - Book value per share increased to $205.63 in Q4 2025 from $164.19 in Q4 2024, representing a 25.2% increase[95] Business Production - Assumed new business production for Q4 2025 was $149.9 billion, compared to $110.9 billion in Q4 2024, indicating a 35% increase[7] - Assumed life reinsurance in force reached $3,878.7 billion, an increase from $4,334.6 billion in the previous year[7] - Assumed life reinsurance in force reached $1,893.4 billion, an increase from $1,860.7 billion in the previous quarter[18] - Assumed New Business Production increased to $38.6 billion, up 52.3% from $26.5 billion in the prior year[39] Claims and Expenses - Total benefits and expenses increased to $6,125 million, up 21.8% from $5,016 million in the prior year quarter[9] - Adjusted claims and other policy benefits were $4,772 million, a 21.1% increase from $3,943 million year-over-year[9] - Adjusted claims and other policy benefits for the quarter were $1.95 billion, an increase from $1.77 billion in the previous quarter, reflecting higher claims activity[18] - Total benefits and expenses for the quarter were $602 million, an increase of 16.9% from $515 million in the prior year[35] Investment Performance - Net investment income rose to $561 million, up from $476 million in the prior quarter, contributing to a year-to-date total of $1,745 million, an increase of $465 million year-over-year[22] - The annualized investment yield for the three months ended December 31, 2025, was 5.23%, up 40 basis points from 4.83% in the prior year[61] - Realized gains on investment activity for the year-to-date ending December 31, 2025, were $210 million, an increase of $16 million compared to the previous year[79] Segment Performance - The U.S. and Latin America segment reported total adjusted operating income of $325 million, a 30% increase from $227 million in the prior year quarter[55] - The Asia Pacific segment saw a significant increase in adjusted operating income, reaching $204 million, up from $128 million year-over-year, a growth of 59%[55] - Income before income taxes for U.S. and Latin America Traditional increased to $201 million, up 48% from the prior quarter[82] - Asia Pacific Traditional income before income taxes for Q4 2025 was $118 million, up from $59 million in Q4 2024, representing a 100% increase year-over-year[90] Financial Position - Total assets increased to $156.59 billion as of December 31, 2025, up from $118.68 billion a year earlier, representing a growth of 32%[15] - The company reported a total of $4,815 million in securities rated BB, which accounted for 4.8% of the total in 2025, consistent with previous periods[69] - The total value of industrials fixed maturity securities rose to $39,381 million in 2025, representing 54.3% of the total, compared to 51.9% in 2024[66] Loss Ratios - The loss ratio improved to 89.2% for the quarter, compared to 91.5% in the previous quarter, indicating better claims management[18] - The loss ratio improved to 87.6% from 91.7% in the prior quarter, indicating a decrease of 4.1 percentage points[27] - The loss ratio improved to 91.3% from 93.6% in the prior year, reflecting better claims management[35] - The loss ratio improved to 84.0% from 89.0% in the prior year, indicating a 5.0% decrease[43]