Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][5][16] - The company repurchased $650 million of shares in Q4 2025, representing 13% of shares repurchased throughout the year and 17% since Q1 2024 [5][6] - The operating earnings per share for Q4 was $13.34, with a combined ratio of 71% for the year [14] Business Line Data and Key Metrics Changes - Underwriting income for 2025 was $1.3 billion, with a combined ratio of 85% for the year, despite absorbing large losses from events like the California wildfires [14][17] - In Property Catastrophe, the current accident-year loss ratio was 64%, including significant losses from the California wildfires [17] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [21][22] Market Data and Key Metrics Changes - Property Cat rates were down in the low teens percentage-wise, but the company found opportunities to grow, keeping top-line premiums down only in the mid-single digits [10][11] - The underwriting portfolio is approximately one-third larger than before, with retained net investment income tripling and fee income more than doubling compared to 2022 [11] Company Strategy and Development Direction - The company aims to maintain or grow its property business, preserve underwriting margins, and continue returning capital to shareholders through share repurchases [12] - Strategic initiatives include upgrading underwriting systems to be more customer-centric and leveraging artificial intelligence for efficiency [7] - The focus for 2026 includes optimizing the underwriting portfolio and managing exposure to areas most at risk of claims inflation [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns to shareholders, citing strong financial performance despite industry headwinds [4][40] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [40] - Management highlighted the importance of maintaining strong client relationships and a well-constructed underwriting portfolio to support profitability [31][38] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [24] - The Bermuda government introduced substance-based tax credits, which are expected to provide a positive tailwind to results [25] Q&A Session Summary Question: Expectations for Property Cat premiums in 2026 - Management confirmed expectations for mid-single-digit declines in Property Cat premiums for the year, with continued rate reductions anticipated during mid-year renewals [42] Question: Expense ratio guidance and tax credits - The expense ratio guidance of 5%-5.5% for 2026 includes the benefit of Bermuda tax credits, which will increase in value over time [43][44] Question: Gold investment and its impact - Management discussed the gold position as a hedge against underwriting and interest rate risks, with no specific exit price target [48][49] Question: Expected returns and rate adequacy in Property Cat - Management indicated that rate adequacy remains strong despite recent declines in rates, with a focus on selecting the best opportunities for portfolio construction [55][56] Question: Changes in exposure to riot and civil commotion coverage - Management confirmed no significant changes in exposure to riot and civil commotion risks, maintaining tight terms and conditions [66]

Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][12] - The company repurchased $650 million of shares in Q4 2025, representing 13% of shares for the year and 17% since Q1 2024 [4][12] - The cumulative return on shares since the Validus acquisition has been around 30% [4] Business Line Data and Key Metrics Changes - Underwriting income for 2025 was $1.3 billion, with a combined ratio of 71% for the year [12][16] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [20] - Retained net investment income for 2025 was $1.2 billion, up 4% from the previous year [21][22] Market Data and Key Metrics Changes - Property CAT rates were down in the low teens percentage, but the company found opportunities to grow, keeping top-line premium and property CAT down only mid-single digits [9][36] - The underwriting portfolio is approximately one-third larger compared to the previous year, with retained net investment income tripling and fee income more than doubling [10] Company Strategy and Development Direction - The company aims to maintain or grow its property business, preserve underwriting margins, and continue growing fees in its Capital Partners business [11] - The strategy includes optimizing the underwriting portfolio and enhancing efficiency through technology and artificial intelligence [5][11] - The company plans to execute a gross-to-net strategy to leverage competitive CAT-bond and retro markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns despite headwinds such as the California wildfires and a softening reinsurance market [3][10] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [37] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [23][24] - The Bermuda government introduced substance-based tax credits, which are expected to provide a positive impact on results [24][25] Q&A Session Summary Question: Expectations for property CAT premiums in 2026 - Management confirmed expectations for mid-single-digit declines in property CAT premiums for the year, with continued rate reductions anticipated in mid-year renewals [38][39] Question: Expense ratio guidance - The expense ratio guidance of 5%-5.5% includes the benefit of Bermuda tax credits and reflects ongoing investments in the business [40] Question: Gold investment strategy - Management indicated that the gold position serves as a hedge against underwriting and interest rate risks, with no specific exit price target [42][43] Question: Casualty and specialty segment reserve philosophy - Management stated that the casualty-specialty segment is stable, with cautious reserving practices in place despite favorable development in prior years [51] Question: Changes in exposure to riot and civil commotion coverage - Management confirmed no significant changes in exposure to riot and civil commotion risks, maintaining tight terms and conditions [52]

Core Insights - Reinsurance Group of America, Incorporated (RGA) is a prominent global life and health reinsurer, providing reinsurance services to help insurance companies manage risk exposure [1] - Piper Sandler has updated its rating for RGA to "Overweight" and raised the price target from $220 to $230, reflecting confidence in the company's future performance [2][6] - RGA's stock is currently priced at $207.02, with a 0.64% increase, and has shown significant volatility over the past year, ranging from a low of $159.25 to a high of $232.97 [3][6] - The company's market capitalization is approximately $13.62 billion, indicating its substantial size and value in the market [4] - RGA appointed Ryan Krueger as Senior Vice President of Investor Relations, effective January 5, 2026, to enhance communication with the investor community [5][6]

Core Insights - Acrisure London Wholesale (ALW) has partnered with Madanes, an established insurance broker in Israel, to enhance its presence in the Lloyd's and broader London insurance markets [1][2] - The collaboration has successfully combined Madanes' local expertise with Acrisure's international reach, leading to multiple successful placements [2][3] - The partnership aims to provide customized solutions across non-marine lines of business for both local and international clients [4] Company Overview - Madanes employs over 300 individuals and offers a wide range of reinsurance services across various sectors, including industry, commerce, and private clients [1] - The partnership allows Madanes to leverage ALW's broking expertise, global resources, and analytical capabilities to improve its service offerings [3][4] Strategic Goals - The alliance is focused on supporting Madanes in delivering tailored solutions, enhancing the value provided to clients through ALW's capabilities and global relationships [4][5] - The collaboration has demonstrated strong results in navigating complex placements, showcasing the ability to respond effectively to challenging market conditions [5]

Financial Data and Key Metrics Changes - The company's tangible book value plus accumulated dividends grew by 26% [6] - Operating income exceeded $220 million, with operating income per share just shy of $43 [6][23] - The adjusted combined ratio for the year was 81.5%, while the combined ratio for the Casualty and Specialty segment was 98%, up from 94% the previous year [10][31] Business Line Data and Key Metrics Changes - Underwriting income was $1.6 billion with an adjusted combined ratio of 81.5% [6][30] - The Property segment reported an adjusted combined ratio of 55%, while the Casualty segment reported an adjusted combined ratio of 98% [32][34] - Gross premiums written increased by 32% to $1.17 billion, with significant growth in property catastrophe and specialty lines [31] Market Data and Key Metrics Changes - The company expects an increase in demand for reinsurance in 2025 due to recent catastrophic events [30][43] - Property catastrophe rates were down in the high single digits, but the company found opportunities to grow, keeping top-line premiums flat [14][51] Company Strategy and Development Direction - The integration of Validus has been successful, retaining substantially all of its underwriting portfolio and generating capital efficiencies [9][30] - The company aims to be a first-call market for clients, focusing on strong partnerships and consistent pricing [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving market for property catastrophe reinsurance, anticipating upward pressure on rates [43][44] - The company is prepared to deploy additional capacity to support customers in light of recent catastrophic events [42][43] Other Important Information - The California wildfires are expected to have a pretax net negative impact of approximately $7.5 million based on a market loss estimate of $50 billion [17][18] - The Bermuda government will implement a 15% corporate income tax starting in 2025, which will affect the company's tax expenses [39][40] Q&A Session Summary Question: Concerns about Casualty Specialty combined ratio trends - Management noted that despite the higher combined ratio, they had a profitable year in Casualty Specialty and are comfortable with their reserves [63][65] Question: Impact of California wildfires on renewals - Management indicated that the California wildfires would impact pricing during renewals, with expectations for better opportunities in the upcoming renewals [68][70] Question: Clarification on reserve management and charges - Management confirmed that they have added to reserves in the Casualty segment but emphasized that the overall reserve pool remains in a comfortable position [82][84]