Reinsurance Group of America (RGA) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted operating EPS was $4.72, with trailing twelve-month adjusted operating ROE (excluding notable items) at 14.3%; net income was $181 million, down from $204 million in Q2 2024.

• Results were below expectations due to large claims volatility in U.S. individual life and unfavorable healthcare excess claims, though APAC and EMEA segments delivered strong results.

• Strategic successes included closing the Equitable Holdings transaction, increasing excess and deployable capital, and strong new business production.

• Premiums rose 11% year-to-date on a constant currency basis, with robust growth across all regions.

• Total assets reached $133.5 billion as of June 30, 2025, up from $118.7 billion at year-end 2024.

Financial highlights

• Pre-tax adjusted operating income was $421 million for Q2 2025, down from $491 million in Q2 2024.

• Net premiums for Q2 2025 were $4.2 billion, up from $3.9 billion in Q2 2024; net investment income was $1.4 billion, a $326 million increase year-over-year.

• Book value per share (excluding AOCI and B36 embedded derivatives) was $156.63 at Q2 2025; book value per share at June 30, 2025 was $182.37.

• Average investment yield (excluding spread business) was 5.31% in Q2 2025, up 66 bps year-over-year.

• Effective tax rate for the quarter was 25.2% on adjusted operating income, above the expected range due to valuation allowances.

Outlook and guidance

• Forward-looking views remain unchanged; expect improvement in healthcare excess results as repricing actions take effect by January 2026.

• Pre-tax operating income from the Equitable transaction expected to be $70 million in 2025, $160–$170 million in 2026, and ~$200 million per year by 2027.

• Management expects sufficient liquidity for the next 12 months, supported by strong cash flows and access to credit facilities.

• The company is well positioned in its markets with a proven strategy and a robust pipeline.

• The recent reinsurance transaction is expected to increase exposure to certain risks but also provide growth opportunities.