Yahoo Finance

• Adjusted Operating Earnings: $5.66 per share.

• Adjusted Operating Return on Equity: 15%, excluding notable items.

• Pretax Adjusted Operating Income: $485 million for the quarter.

• Capital Deployed in In-Force Transactions: $418 million.

• Excess Capital: $1.9 billion before the Equitable transaction.

• Deployable Capital: Estimated at $1.3 billion at the end of the quarter.

• Nonspread Portfolio Yield: 4.9% in Q1, up 10 basis points from the previous quarter.

• Effective Tax Rate: 21.9% on adjusted operating income before taxes.

• Consolidated Net Premiums Growth: Up 13% year-over-year, adjusted for U.S. PRT transactions.

• Traditional Business Premium Growth: 11.2% for the quarter on a constant currency basis.

• Economic Impact of Biometric Claims Experience: Favorable by $196 million.

• Financial Impact of Biometric Claims Experience: Favorable by $58 million.

• Book Value Per Share: Increased to $154.6, with a compounded annual growth rate of 9.8% since 2021.

• Warning! GuruFocus has detected 2 Warning Sign with RGA.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Reinsurance Group of America Inc (NYSE:RGA) reported strong adjusted operating earnings of $5.66 per share, with a 15% adjusted operating return on equity, indicating a robust start to the year.

• The company experienced favorable claims experience across all geographic regions, contributing significantly to the positive financial results.

• RGA's Creation Re strategy has led to substantial growth in Asia, with new business embedded value per transaction tripling since 2021.

• The company successfully deployed $418 million in capital for in-force transactions, including strategic deals in Asia and a significant transaction with Equitable expected to close midyear.

• RGA maintains a strong capital position with $1.9 billion in excess capital and $1.3 billion in deployable capital, supporting future growth opportunities.

Negative Points

• Variable investment income was below expectations by approximately $30 million, primarily due to lower mark-to-market adjustments on limited partnerships and timing of real estate joint venture sales.

• The US Financial Solutions segment performed at the low end of expectations due to lower variable investment income.

• The Corporate and Other segments reported an adjusted operating loss before tax of $70 million, driven by lower-than-expected variable investment income and other smaller onetime items.

• The US PRT market has been less vibrant recently, reflecting market uncertainty and resulting in reduced activity at the upper end of the market.

• Canada's traditional results were impacted by modestly unfavorable lapse experience, although partially offset by favorable claims experience.