Reinsurance Group Q3 Earnings Top Estimates on Solid Investment Income

Core Insights - Reinsurance Group of America (RGA) reported third-quarter 2025 adjusted operating earnings of $6.37 per share, exceeding the Zacks Consensus Estimate by 9.8% and reflecting a 3.9% increase year over year [1][10] - The company's operating revenues reached $6.2 billion, surpassing estimates by 0.9% and showing an 8% year-over-year growth driven by higher net investment income and other revenues [2][10] Financial Performance - Net premiums totaled $4.3 billion, a decline of 2.5% year over year, while investment income rose 24% to $1.5 billion [3] - Total benefits and expenses increased by 8.2% year over year to $5.9 billion, attributed to higher claims, policy benefits, and operating expenses [4] Segment Performance - U.S. and Latin America segment reported a pre-tax adjusted operating income of $236 million, up 48.4% year over year, with the Traditional segment's income increasing by 72% to $136 million [5] - The Financial Solutions segment's pre-tax adjusted operating income rose 25% to $100 million, benefiting from the Equitable transaction [6] - Asia/Pacific segment's pre-tax adjusted operating income surged nearly threefold to $209 million, offsetting losses in EMEA [11] EMEA and Corporate Performance - EMEA segment experienced a pre-tax adjusted operating loss of $52 million, contrasting with a profit of $68 million in the previous year [8] - Corporate and Other segment reported a wider pre-tax adjusted operating loss of $58 million, primarily due to lower variable investment income and higher expenses [13] Financial Metrics - As of September 30, 2025, RGA's total assets amounted to $152 billion, a 26.4% increase year over year, with a book value per share of $158.67, up 6% [14] - The adjusted operating return on equity was 13.2%, a contraction of 60 basis points year over year [14] Capital Deployment - RGA deployed $1.7 billion into in-force block transactions, including $1.5 billion into Equitable Holdings, and repurchased shares worth $75 million [15] - A quarterly dividend of 93 cents was declared, to be paid on November 25, 2025 [15]