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 experience and robust new business growth across all regions.

• Net income for Q1 2025 was $288 million ($4.27 per share), up from $212 million in Q1 2024, reflecting improved profitability and business growth.

• $418 million of capital was deployed in in-force transactions, including the Manulife deal and two strategic transactions in Asia, with additional deployment expected from the Equitable Holdings transaction.

• The Creation Re strategy continues to drive growth, with over 50% of new business sourced from this approach in the past two years.

• The company maintains a robust balance sheet with estimated excess capital of $1.9 billion and deployable capital of $1.3 billion.

Financial highlights

• Adjusted operating income before taxes was $485 million for Q1 2025.

• Book value per share (excluding AOCI and B36 impacts) rose to $154.60, a 9.8% CAGR since 2021.

• Total assets reached $128.2 billion as of March 31, 2025, up from $118.7 billion at year-end 2024.

• Net investment income increased to $1.23 billion from $961 million year-over-year, driven by a higher invested asset base and higher new money rates.

• Consolidated net premiums increased 13% year-over-year after adjusting for lower single premium PRT activity.

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.

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

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

• The company expects the PRT market to recover in the second half of the year and remains bullish on medium- and long-term prospects.