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Jun 30
RGA Q2 2025 Earnings Report
RGA reported its second quarter results, with net income available to shareholders of $2.70 per diluted share and adjusted operating income of $4.72 per diluted share.
Key Takeaways
Reinsurance Group of America (RGA) reported a decrease in net income and adjusted operating income for the second quarter of 2025 compared to the prior year, primarily due to claims volatility in its U.S. Individual Life business. Despite this, the company maintained strong momentum overall, benefiting from its global platform and successful execution of its Creation Re strategy. RGA also significantly increased its estimated deployable capital and remains optimistic about future business prospects.
Net income available to RGA shareholders was $180 million, or $2.70 per diluted share, a decrease from $203 million, or $3.03 per diluted share, in the prior-year quarter.
Adjusted operating income totaled $315 million, or $4.72 per diluted share, down from $365 million, or $5.48 per diluted share, in the same period last year.
Consolidated net premiums increased by 5.9% to $4.2 billion, with favorable foreign currency effects.
The effective tax rate for the quarter was 47% on pre-tax income, significantly above the expected range, mainly due to valuation allowances on foreign tax credits and a legal entity restructuring.
RGA
RGA
RGA Revenue by Segment
RGA Revenue by Geographic Location
Revenue by Segment
US & Latin America Traditional Revenue
CapyFin.comCanada Traditional Revenue
CapyFin.comEMEA Traditional Revenue
CapyFin.comAsia Pacific Traditional Revenue
CapyFin.comAsia Pacific Financial Solutions Revenue
CapyFin.comRevenue by Geographic Location
US and Latin America Revenue
CapyFin.comCanada Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
RGA remains optimistic about its business prospects, expecting to continue delivering attractive financial results. The company is well-positioned in its markets with a proven strategy and a long track record of successful execution.
Positive Outlook
- Continued execution on strategy and benefit from earnings diversity of global platform.
- New business remained strong in the quarter.
- Creation Re strategy continues to perform above expectations.
- Balance sheet optimization efforts led to increased estimated excess capital.
- Well-positioned to fund growth and return capital to shareholders through dividends and share repurchases.
Challenges Ahead
- Second quarter operating results were below expectations.
- Claims volatility in U.S. Individual Life business.
- U.S. Group business saw higher than expected claims in healthcare excess line.
- Effective tax rate significantly above expected range due to valuation allowances and restructuring.
- Uncertainties regarding future economic conditions and regulatory actions.