Reinsurance Group of America (RGA) Investor Update summary

Strategic Transaction Overview

• RGA will reinsure $32 billion of diversified life insurance products from Equitable, covering 75% of in-force liabilities and expanding into product development, underwriting outsourcing, and asset management.

• The transaction is positioned as mutually beneficial, supporting client strategy, delivering attractive returns within target ranges, and reinforcing RGA's expertise in biometric risk and global liability origination.

• The deal is expected to close in mid-2025, pending regulatory approvals.

• Equitable will retain direct policyholder administration, minimizing operational risks and aligning interests.

• The transaction highlights RGA’s ability to execute large in-force deals and provide creative, technical solutions.

Financial Impact and Capital Deployment

• RGA will deploy $1.5 billion of capital, funded through excess capital and potential debt, with $800 million of deployable capital remaining post-transaction.

• Projected to contribute $70 million in adjusted operating income before tax in 2025, $160–$170 million in 2026, and about $200 million annually after asset repositioning.

• Return on equity is expected within the 13%-15% target range, with a capital structure of 70% equity and 30% debt.

• The transaction is consistent with 8%-10% CAGR run-rate guidance and is expected to meaningfully boost adjusted operating EPS.

• RGA expects to maintain strong capital and leverage positions, with no equity capital raise anticipated.

Risk Profile and Business Mix

• The reinsured block features a diversified mix of life products, with modest exposure to secondary guarantees and limited income volatility from equity market exposure.

• 93% of reserve liabilities have low or very low policyholder behavior risk to interest rate changes.

• The transaction is weighted toward insurance risks, with lower policyholder behavior risk and an investment strategy aligned with RGA's credit risk profile.

• Cedant retains direct policy administration, minimizing operational risks.

• Asset repositioning from the transaction is expected to complete in about 12 months, with full income contribution realized in the second year.