RGA Q4 Earnings and Revenues Beat Estimates, Premiums Up Y/Y

Core Insights - Reinsurance Group of America, Incorporated (RGA) reported strong fourth-quarter 2025 adjusted operating earnings of $7.75 per share, exceeding the Zacks Consensus Estimate by 32.3% and reflecting a 55.3% increase year over year [2][10] - The company's operating revenues reached $6.8 billion, surpassing the Zacks Consensus Estimate by 10.9% and showing a year-over-year growth of 23.4% driven by higher net investment income [3][10] Financial Performance - Net premiums for RGA totaled $4.8 billion, marking a 15% increase year over year and beating the Zacks Consensus Estimates by 9.5% [7] - Investment income rose significantly by 42.7% from the prior-year quarter to $1.7 billion, also exceeding the Zacks Consensus Estimates by 13.6% [7] - The average investment yield improved to 5.2% from 4.8% in the previous year, attributed to higher variable investment income [7] Segment Performance - RGA's performance was robust in the Asia/Pacific, U.S., Latin America, and Canada segments, although it faced challenges in the Europe, Middle East, and Africa (EMEA) segment and the Corporate and Other segments [4][10] - In the U.S. and Latin America, total pre-tax adjusted operating income was $325 million, a 43.2% increase year over year, with the Traditional segment contributing $222 million, up 47% [11] - Canada saw a 60% year-over-year increase in pre-tax adjusted operating income to $64 million, with net premiums growing 4.2% to $347 million [12] Full-Year Highlights - For the full year 2025, adjusted operating earnings were $22.72 per share, slightly above the Zacks Consensus Estimate of $22.57, reflecting a 13.3% year-over-year increase [18] - Total revenues for 2025 reached $23.9 billion, modestly exceeding the consensus estimate of $23.6 billion, while net premiums declined by 3.4% to $17.2 billion [18] Capital Deployment - RGA deployed $2.5 billion into in-force block transactions, including $1.5 billion into a transaction with subsidiaries of Equitable Holdings, Inc. [20] - The company repurchased shares worth $50 million in the quarter and $125 million in total for 2025 [20] - A quarterly dividend of 93 cents was declared, with payment scheduled for March 3, 2026 [20] Financial Position - As of December 31, 2025, RGA's total assets were $156.6 billion, reflecting a 32% year-over-year increase [19] - Book value per share, excluding accumulated other comprehensive income, rose 8.8% year over year to $164.66 [19] - Adjusted operating return on equity was 14.7%, representing a 90-basis-point increase from the previous year [19]