Reinsurance Group of America (RGA) Q4 2024 earnings summary

Executive summary

• Adjusted operating earnings reached $22.57 per share in 2024, up 14% year-over-year, with record capital deployment of $1.68 billion into in-force block transactions and strong business momentum across all geographies.

• Value of in-force business margins increased by $4.6 billion, driven by new business and balance sheet optimization actions.

• Maintained $1.7 billion in deployable capital at year-end, supporting future growth and capital management.

• Book value per share (excluding AOCI and embedded derivatives) increased to $151.97, with a 9.9% CAGR since 2021.

• Net income for the year was $717 million ($10.73 per diluted share), down from $902 million ($13.44) in 2023.

Financial highlights

• Q4 adjusted operating income was $4.99 per diluted share; full-year adjusted operating income, excluding notable items, totaled $1.51 billion.

• Net premiums grew 18.3% year-over-year to $17.8 billion, with traditional premium growth of 8.3% on a constant currency basis.

• Non-spread new money investment rate in Q4 was 6.04%, above the portfolio yield of 4.83%.

• Book value per share at year-end was $151.31 excluding AOCI.

• Record $2.5 billion in private asset originations in Q4.

Outlook and guidance

• Intermediate-term adjusted operating ROE target raised to 13%-15%, with an 8%-10% growth target on a higher earnings run rate.

• 2025 run rates assume $1.5-$2 billion in annual capital deployment, with growth driven by new business and in-force management actions.

• Updated run-rate targets for 2025 reflect higher expectations across most segments, with total adjusted operating income before taxes targeted at $1.87–2.09 billion.

• FX assumptions use year-end rates; run rates include a modest level of in-force actions, with potential upside if more occur.

• Optimism for continued attractive financial results, supported by a strong balance sheet and robust deployable capital.