Reinsurance Group Q2 Earnings and Revenues Miss, Premiums Rise Y/Y

Core Insights - Reinsurance Group of America (RGA) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, missing the Zacks Consensus Estimate by 15.4% and decreasing 13.9% from the previous year [1][9] - Operating revenues reached $5.6 billion, a 9.6% year-over-year increase, but fell short of consensus estimates by 1.1% [2][9] - Total benefits and expenses rose 14.1% year over year to $5.2 billion, driven by higher claims and policy benefits [3][9] Segment Performance - U.S. and Latin America: Pre-tax adjusted operating income decreased 59% year over year to $101 million, with net premiums increasing 10.5% to $2 billion [4] - Canada: Pre-tax adjusted operating income increased 12.1% year over year to $37 million, with net premiums rising 4% to $339 million [5][6] - EMEA: Pre-tax adjusted operating income climbed 57.6% year over year to $134 million, with premiums increasing 15.3% to $573 million [7] - Asia/Pacific: Pre-tax adjusted operating income rose 6.5% year over year to $181 million, with premiums increasing 15.3% to $816 million [10] Financial Metrics - Net premiums totaled $4.2 billion, a 5.9% year-over-year increase [3] - Investment income increased 30.1% from the prior year to $1.4 billion, with an average investment yield of 5.3%, up 66 basis points [3] - As of June 30, 2025, total assets were $133.5 billion, a 12.5% increase from the end of 2024, and book value per share rose 5.2% to $155.87 [12] Capital Deployment - RGA deployed $276 million for in-force block transactions and declared a quarterly dividend of 93 cents, payable on August 26, 2025 [13]