Reinsurance Group of America (RGA) Q1 2025 earnings summary

Executive summary

• Adjusted operating earnings reached $5.66 per share, with a 15% adjusted operating ROE, driven by favorable claims and strong underwriting across all segments.

• Net income for Q1 2025 was $288 million ($4.27 per share), up from $210 million ($3.16 per share) year-over-year.

• Robust capital position with $1.9 billion in excess capital and $1.3 billion deployable, supporting continued business momentum and strategic transactions.

• Announced a pending reinsurance transaction with Equitable Holdings, expected to close mid-2025, with $418 million deployed in in-force block transactions.

• Total assets reached $128.2 billion as of March 31, 2025, reflecting business growth and investment gains.

Financial highlights

• Pre-tax adjusted operating income was $485 million for Q1 2025, with adjusted operating EPS of $5.66 and book value per share (excluding AOCI and B36) at $154.60.

• Net premiums for Q1 2025 were $4.0 billion, a 25% decrease year-over-year due to lower single premium PRT activity; adjusted, premiums increased 13%.

• Net investment income increased to $1.23 billion, driven by a higher invested asset base and higher new money rates.

• Book value per share rose to $172.53 from $143.92 year-over-year; excluding AOCI, it was $153.80.

• Debt to total capital ratio was 31.2% and debt plus hybrids to total capital was 36.4% as of Q1 2025.

Outlook and guidance

• Management expects continued strong business momentum, supported by a robust transaction pipeline and estimated deployable capital of $1.3 billion.

• The Equitable Holdings transaction, reinsuring $32 billion of life insurance reserves, is expected to close mid-2025, subject to regulatory approvals.

• Tax rate for the remainder of the year expected at 23%-24%; no material impact from recent tax law changes.

• Segment results anticipated to increase through the year as earnings from recent transactions emerge.

• Sufficient liquidity and capital expected to meet obligations for at least the next 12 months.