Mar 31

RGA Q1 2025 Earnings Report

RGA reported strong earnings driven by favorable biometric claims experience across all regions.

Key Takeaways

Reinsurance Group of America posted a solid Q1 with net income of $286 million and adjusted EPS of $5.66, driven by favorable biometric claims and stable performance across its traditional segments, despite a significant decline in net premiums tied to prior-year pension risk transfer activity.

Net income rose to $286 million, up from $210 million in Q1 2024.

Adjusted operating income came in at $378 million, with EPS of $5.66.

Revenue dropped due to a significant decline in U.S. pension risk transfer premiums.

Favorable biometric claims experience supported strong performance across all geographic segments.

Total Revenue
$5.26B
Previous year: $6.34B
-17.0%
EPS
$5.66
Previous year: $6.02
-6.0%
Effective Tax Rate
22.2%
Previous year: 22.1%
+0.5%
Book Value Per Share
$173
Previous year: $144
+19.9%
Book Value Ex-AOCI
$154
Previous year: $146
+5.5%
Total Assets
$128B
Previous year: $106B
+21.0%

RGA

RGA

RGA Revenue by Segment

RGA Revenue by Geographic Location

Forward Guidance

RGA expects continued momentum in organic and in-force transactions, supported by strong capital and favorable underwriting trends, but remains cautious due to macroeconomic uncertainty.

Positive Outlook

  • Favorable biometric claims experience across all geographies
  • Strong capital position with $1.9B in excess capital
  • Expected closing of Equitable Holdings transaction mid-year
  • In-force transactions pipeline remains strong
  • Traditional business showing consistent performance

Challenges Ahead

  • Net premiums declined 25% YoY due to one-time prior year pension deal
  • Lower variable investment income in some segments
  • Foreign currency impact lowered revenues by $60 million
  • Corporate and Other segment reported a $70 million loss
  • Uncertainty remains due to macroeconomic conditions