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- **Record Performance**: Q3 EPS of $6.37, driven by strong regional growth and new business deployment.
- **Equitable Transaction**: $70 million pretax contribution in Q3, scaling to $200 million annually by 2027.
- **Capital Deployment**: $75 million share buybacks and $3.4 billion deployable capital.
- **Strategic Initiatives**: Ruby Re sidecar on track for mid-2026 deployment, leveraging biometric expertise.
- **Competitive Edge**: Selective, exclusive transactions avoid tendered business risk.


**【CEO Summary Section】**
- Reported record operating EPS of $6.37 per share, excluding notable items, driven by strong performance in Asia Traditional and EMEA regions.
- New business momentum: $2.4 billion capital deployed year-to-date, including $1.5 billion in the Equitable transaction and $900 million in smaller, repeat transactions.
- Emphasis on disciplined capital deployment: $75 million share repurchases and $2.3 billion excess capital.
- Strategic initiatives: Ruby Re sidecar expected to be fully deployed by mid-2026, leveraging biometric and asset risk expertise.

**【CFO Financial Commentary】**
- Pretax adjusted operating income of $534 million, with trailing 12-month ROE of 14.2%.
- Equitable transaction contributed $70 million pretax income in Q3, expected to grow to $200 million annually by 2027.
- Traditional business premiums up 8.5% year-to-date on constant currency, driven by U.S., EMEA, and APAC growth.
- Claims experience: $50 million unfavorable impact in Q3, partially offset by $40 million in-force management gains.
- Capital position: $3.4 billion deployable capital, with excess capital of $2.3 billion.

**【Q&A Key Highlights】**
- **U.S. Claims Volatility**: $30 million unfavorable individual life claims, consistent with historical volatility.
- **GLP-1 Drug Impact**: Confident in mortality improvement assumptions, aligned with Swiss Re's central estimates.
- **Ruby Re Progress**: $233 million deployed in Q3, targeting mid-2026 deployment.
- **In-Force Actions**: $45 million year-to-date contributions, consistent with $50 million annual target.
- **Competitive Strategy**: Focused on exclusive, biometric-intensive transactions, avoiding tendered business.
- **Japan Economic Solvency**: Winning selective coinsurance blocks with long-term clients.


Reinsurance Group of America, Incorporated (RGA) Q3 2025 Earnings Call Transcript

- **Q2 Results**: EPS of $4.72, ROE of 14.3%, despite U.S. individual life and health care access claims volatility.
- **Capital Strength**: Excess capital $3.8B, deployable $3.4B, enabling $70M H2 2025 and $200M+ annual Equitable contributions.
- **Growth Drivers**: 11% premium growth, 5-country asset-intensive wins, Creation Re exclusivity.
- **Health Care Access**: Short-term challenges with material rate increases, 30% of U.S. group earnings.
- **Investment Performance**: 4.98% portfolio yield, $105M variable income, book value CAGR 9.7%.
- **Shareholder Returns**: 20-30% of earnings for dividends/buybacks, resuming share repurchases.

**【CEO Summary Section】**
- Q2 operating EPS of $4.72, with trailing 12-month adjusted ROE of 14.3% (in line with intermediate-term targets).
- U.S. individual life claims volatility and unfavorable health care access business拖累 results, but full-year expectations remain unchanged.
- Excess capital increased to $3.8 billion (pro forma $2.3B post Equitable transaction), deployable capital at $3.4 billion.
- Equitable transaction contribution: $30M Q2, $70M H2 2025, $160-170M 2026, $200M+ annually by 2027.
- Global momentum in financial solutions and traditional businesses, with 11% constant-currency premium growth YTD.
- Creation Re strategy driving exclusive arrangements, with 5-country asset-intensive wins in Q2.

**【CFO Financial Commentary】**
- Pretax adjusted operating income: $421M; GAAP net income: $420M; Non-GAAP EPS: $1.08 (exceeds expectations).
- Claims volatility: $256M unfavorable economic claims impact, $158M current period financial impact.
- U.S. group health care access business: 30% of U.S. group earnings, 3% of U.S. traditional, with rate increases already implemented.
- Nonspread portfolio yield: 4.98% (up 8bps), variable investment income: $105M (stronger than prior quarter).
- Effective tax rate: 25.2% (Q2), expected 23-24% for FY25.
- Value of in-force business margins: $41B (including $2B from new business, excluding Equitable).
- Book value per share (excluding AOCI): $156.63 (CAGR 9.7% since 2021).

**【Q&A Highlights】**
- **Health care access business**: Short-term, 30% of U.S. group earnings. Rate increases material, majority repriced by Jan 2026. Claims driven by specialty drugs, transplants, premature births.
- **Value of in-force credit**: $2B from rating agency recognition, partial of total embedded value. Further opportunities for additional recognition.
- **Capital deployment**: 20-30% of after-tax earnings for dividends/share buybacks (long-term average). Q2+ active in share repurchases, but no buybacks in past 6 quarters.
- **Strategic focus**: Avoiding high-profile brokered U.S. transactions outside risk appetite. Global platform enables selective, high-return business pursuit.
- **Investment strategy**: Long-term approach, prudent portfolio management, 6.53% new money rate vs. 4.98% portfolio yield.


Reinsurance Group of America (RGA)-1 Aug 25-2025 Q2 Earnings call transcript

- **Record Q1 Performance**: $5.66 per share adjusted earnings and 15% ROE, driven by favorable claims and strategic transactions.
- **U.S. Claims Surprise**: Lower large claims boosted U.S. results, while global claims experience was uniformly positive.
- **Equitable Deal Momentum**: Mid-year close expected, with $70M/2025 and $160-170M/2026 contributions, enhancing ROE through re-pricing and biometric expertise.
- **Asia Growth Engine**: Creation Re strategy triples new business embedded value in Asia, fueled by exclusive products and partnerships.
- **Capital Flexibility**: $1.3B deployable capital and excess capital of $1.9B support strategic pipeline execution.
- **Japan Expansion**: Targeting biometric-risk transactions with local teams, positioning for long-term growth under ESR framework.
- **PRT Recovery Outlook**: Temporary pause expected to reverse, with RGA's mortality expertise well-positioned for recovery.


**【CEO Summary Section】**
- Adjusted operating earnings of $5.66 per share, with a 15% adjusted operating ROE, excluding notable items.
- Strong performance across all regions driven by favorable claims experience, particularly in the U.S. due to lower-than-expected large claims.
- $418 million capital deployed in Q1, including the Manulife deal and two smaller Asian transactions. The Equitable transaction is expected to close mid-year with pre-tax contributions of $70 million in 2025 and $160-170 million in 2026.
- Creation Re strategy continues to drive growth, with new business embedded value per transaction in Asia tripling since 2021, fueled by exclusive partnerships and product innovation.
- Focus on disciplined risk-taking, capital management, and strategic in-force management actions to enhance ROE.

**【CFO Financial Commentary】**
- Pre-tax adjusted operating income of $485 million, with a trailing 12-month ROE of 15%.
- Non-spread portfolio yield of 4.9%, up 10 basis points from Q4, driven by higher new money rates.
- Variable investment income was $30 million below expectations due to limited partnership valuations and real estate joint venture timing.
- Effective tax rate of 21.9%, below the 23%-24% guidance range, with expectations to return to the range in subsequent quarters.
- Deployable capital of $1.3 billion at quarter-end, enabling strategic transactions and capital management flexibility.
- Strong balance sheet with excess capital of $1.9 billion before the Equitable transaction.

**【Q&A Key Highlights】**
- **Mortality Experience**: U.S. claims experience was favorable due to lower large claims, while smaller claims aligned with elevated flu season trends. Global claims experience was positive across all regions.
- **Equitable Transaction**: Expected to enhance ROE through re-pricing and biometric expertise, with financial returns within target range. Synergies include capital efficiency and risk management capabilities.
- **Japan Market**: New opportunities under the ESR capital framework, leveraging local teams for after-sales service and long-term relationships. Focus on modest-sized, biometric-risk transactions rather than asset-only blocks.
- **PRT Market**: Temporary pause due to macro uncertainty, but bullish on medium-term recovery driven by de-risking trends and RGA's mortality expertise.
- **Competitive Landscape**: Creation Re strategy differentiates RGA through exclusive partnerships and product innovation, reducing reliance on P&C market cycles.
- **Capital Management**: Utilizing third-party capital (e.g., Ruby Re) and hybrid debt to fund transactions, maintaining flexibility for future deployments.


Reinsurance Group of America (RGA)-2 May 25-2025 Q1 Earnings call transcript

- **Record Growth & Target Expansion**: 2024 EPS up 14% to $22.57, ROE 15.4%. ROE target raised to 13-15%, with 8-10% earnings growth.
- **Strategic Deal Momentum**: $1.7B annualized capital deployment, including landmark Japan & China transactions.
- **Longevity & PRT Leadership**: U.S. PRT pipeline strong, Canada's first funded PRT diversifies risk.
- **Capital Flexibility**: $1.7B deployable capital, with 2025 deployment expected at $1.5-2.0B.
- **Risk Management**: Litigation no hindrance to PRT growth; LTC deals modest, aligned with risk profile.

**【CEO Summary Section】**
- **Record Financial Performance**: Q4 2024 adjusted operating EPS of $4.99, trailing 12-month ROE of 15.4%. Full-year capital deployment reached $1.7 billion, up 80% YoY, with $2.1 billion in long-term value from balance sheet optimization.
- **Strategic Growth Drivers**: 
  - **Asia Traditional**: 4 China transactions generating value uplift, optimizing ALM profile.
  - **U.S. Traditional**: Strong Q4 new business, including LTC block (2% of liabilities) with favorable risk profile.
  - **Longevity & PRT**: U.S. PRT pipeline remains strong; Canada's first funded PRT transaction diversifies risk.
  - **Japan Asset-Intensive**: Landmark $200M transaction with biometric and asset reinsurance.
- **Updated Targets**: Intermediate ROE target raised to 13-15% (from 12-14%), with 8-10% earnings growth on higher run rate.

**【CFO Financial Commentary】**
- **Q4 Financials**: Pretax adjusted operating income $431M, trailing 12-month ROE 15.4%. GAAP EPS $4.99, driven by $84M in-force management benefits and $42M incentive comp true-up.
- **Capital Deployment**: $250M in Q4, $1.7B annualized. Deployable capital $1.7B, reflecting forward-looking 12-month capacity.
- **Segment Performance**: 
  - **U.S. Traditional**: 9.5% Q4 premium growth, benefiting from in-force actions.
  - **Asia Financial Solutions**: 14% YoY VIF growth, driven by new business and management actions.
  - **EMEA**: 11% YoY premium growth, shifting to higher-margin longevity business.
- **Investment Income**: Non-spread portfolio yield 4.83%, new money rate 6.04%, supporting long-term margin expansion.

**【Q&A Key Themes】**
- **Capital Utilization**: 2025 deployment expected at $1.5-2.0B, with pipeline supporting minimal buybacks.
- **FX Impact**: Q4 EPS reduced $0.15 due to FX, but long-term VIF growth mitigates volatility.
- **Litigation Risk**: No material impact on PRT pipeline; recent transaction won despite lawsuits.
- **LTC Strategy**: Modest-sized deals aligned with existing block performance, strategic client focus.
- **Ruby Re**: Additional retrocession of U.S. asset-intensive liabilities, enhancing capital flexibility.

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