Core Insights - RGA reported record pre-tax adjusted operating income of $515 million for the quarter, driven by new business earnings, favorable in-force management actions, and strong investment performance [1] - The company achieved record operating EPS of $7.75 for Q4 2025 and a trailing 12-month adjusted operating ROE of 15.7%, exceeding its target range of 13% to 15% [4][7] - RGA plans to deploy approximately $1.5 billion in in-force transactions for 2026 and expects to utilize about $400 million of excess capital to reduce leverage [6][16] Financial Performance - RGA's full-year 2025 results included a 15.7% ROE and an 18% increase in the value of in-force business margins [3] - The company deployed $2.5 billion into in-force transactions during 2025 and ended Q4 with approximately $2.7 billion of excess capital [3][7] - In Q4, RGA's in-force management actions had a favorable financial impact of $95 million [7] Business Segments - Management noted favorable results in the U.S. due to in-force management actions and variable investment income, while individual life mortality was in line with expectations [2] - EMEA experienced strong volume growth and favorable experience, and APAC continued to show growth momentum [2] - RGA is exiting the U.S. group healthcare market, which represents about $400 million of annual premium and approximately $25 million of pre-tax run-rate earnings [5][13] Capital Management - RGA reinstated share repurchases totaling $125 million since the program's reinstatement in Q3 2025, targeting a total payout ratio of 20% to 30% [8] - The company expects an effective tax rate of 22% to 23% for 2026 and anticipates a 7% variable investment income return [10] - Management emphasized a balanced approach between reinvesting in attractive opportunities and returning capital to shareholders [8] Strategic Transactions - The Equitable transaction is expected to contribute approximately $160 million to $170 million in earnings for 2026, with several drivers of economic upside identified [15] - RGA's management described expectations for in-force management actions in 2026 as more limited compared to previous years [11] - The company remains selective regarding legacy risks, with ULSG and LTC liabilities expected to remain below 10% of the balance sheet [14] Market Outlook - RGA's Chief Investment Officer noted modest exposure to software-related investments in direct lending and ongoing assessment of AI disruption across the portfolio [17] - Management highlighted a "rich and diverse" pipeline across regions, particularly in Asia and U.K. longevity [18]