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    RGA
    Earnings call· Mar 2026(Q1 FY26)

    REINSURANCE GROUP OF AMERICA Q1 FY26 earnings call RGA

    May 8, 2026 Source

    Executive summary

    Reinsurance Group of America Q1 FY26 — Strong Start with Broad-Based Performance and Disciplined Capital Deployment

    RGA delivered a strong Q1 FY26, marked by broad-based performance across regions and products, driven by disciplined execution and strong underlying fundamentals. The company continues to leverage its global platform and biometric expertise for attractive risk-adjusted returns, deploying capital selectively while maintaining a robust capital position and returning capital to shareholders.

    Highlights

    6

    • Reported pretax adjusted operating income of $611 million, or $6.97 per share after tax, reflecting strong performance.

    • Achieved a trailing 12 months adjusted operating return on equity (excluding notable items) of 16.2%.

    • Economic claims experience was favorable by $117 million in the quarter, with a corresponding favorable current period financial impact of $4 million.

    • Deployed $338 million into in-force transactions, primarily in Asia, demonstrating selective capital allocation.

    • Ended the quarter with estimated excess capital of $2.4 billion and estimated next 12 months deployable capital of $2.9 billion, maintaining a strong capital position.

    • Book value per share (excluding AOCI and B36 embedded derivatives) increased to $167.92, representing a compounded annual growth rate of 9.9% since 2021.

    Concerns

    3

    • The effective tax rate for the quarter was 24.4% on adjusted operating income, above the expected range due to jurisdictional mix of earnings and an increase in valuation allowance on tax credits.

    • The Corporate and Other segment reported an adjusted operating loss before tax of $65 million, primarily due to timing of compensation expenses and slightly unfavorable variable investment income.

    • Excess capital was negatively impacted by $200 million due to a correction in one subsidiary's regulatory capital calculations and annual assumption updates.

    Guidance & targets

    4
    CategoryTargetConfidence
    Variable investment income return
    7%
    medium materiality
    High
    Capital allocation for financial leverage reduction
    $400 million
    medium materiality
    High
    Ruby Re capital deployment
    Fully deployed
    medium materiality
    High
    Total shareholder return of capital
    20% to 30% of after-tax operating earnings
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    U.S. and Latin America Traditional
    Results reflected favorable claims experience in individual life and good individual health results. Experience in U.S. Group was in line with expectations.
    Claims experience: Favorable in individual lifeIndividual health results: Good
    		————
    Canada Traditional
    Results reflected favorable individual life and group claims experience.
    Claims experience: Favorable in individual life and group
    		————
    EMEA Traditional
    Results reflected a timing benefit on an annual premium treaty, partially offset by unfavorable claims experience in capped cohorts. Economic claims experience was favorable.
    Claims experience: Unfavorable in capped cohorts (partially offset)Economic claims experience: Favorable
    		————
    Asia Pacific Traditional
    Had another good quarter, reflecting favorable overall experience and the benefit of ongoing growth.
    Experience: Favorable overallGrowth: Ongoing
    		————
    Corporate and Other
    Reported an adjusted operating loss before tax of $65 million, primarily due to the timing of certain compensation expenses and slightly unfavorable variable investment income.
    		———-$65 million

    Operational metrics

    20
    Adjusted operating income
    $611 million
    Q1 FY26

    Reported pretax adjusted operating income for the quarter.

    Adjusted operating income per share
    $6.97
    Q1 FY26

    After-tax adjusted operating income per share.

    Capital deployed into in-force transactions
    $338 million
    Q1 FY26

    Capital deployed into in-force transactions during the quarter.

    Traditional premium growth
    5%YoY
    Q1 FY26

    Benefited from good growth across EMEA and APAC.

    Traditional premium growth
    1%YoY
    Q1 FY26

    Impacted by strategic recapture of certain treaties in H2 2025.

    Share repurchases
    $50 million
    Q1 FY26

    Share repurchases completed in the quarter.

    Total share repurchases since Q3 2025
    $175 million
    since Q3 2025

    Total repurchases since buybacks were reinstated.

    Estimated excess capital
    $2.4 billion
    Q1 FY26

    Estimated excess capital at the end of the quarter.

    Estimated next 12 months deployable capital
    $2.9 billion
    next 12 months

    Estimated deployable capital for the next 12 months.

    Effective tax rate on adjusted operating income
    24.4%
    Q1 FY26

    Above the expected range due to jurisdictional mix of earnings and an increase in valuation allowance on tax credits.

    Economic claims experience (favorable)
    $117 million
    Q1 FY26

    Favorable economic claims experience in the quarter.

    Current period financial impact from economic claims experience (favorable)
    $4 million
    Q1 FY26

    Corresponding favorable current period financial impact from economic claims experience.

    Total favorable economic claims experience
    $343 million
    since 2023

    Total favorable economic claims experience since the beginning of 2023.

    Run rate EPS
    $6.70
    Q1 FY26

    Viewed run rate EPS for the first quarter after considering various impacts.

    Nonspread book yield
    4.85%
    Q1 FY26

    Excluding variable investment income.

    New money rate
    5.64%
    Q1 FY26

    Lower than prior periods, primarily driven by tactical allocation towards high-quality public corporates, but remains above portfolio yield.

    Private credit exposure
    9%
    Q1 FY26

    Highly diversified across many issuers and asset categories, with the majority rated investment grade.

    Capital allocation to reduce financial leverage
    $400 million
    FY26

    Expected allocation of excess capital during 2026.

    Total shareholder return of capital target
    20% to 30%
    long term

    Expected range for total shareholder return of capital.

    Annual impact to future earnings from deferred economic claims experience
    $20 million
    annual

    The current annual impact to future earnings from the favorable economic experience that has not yet been recognized.

    Industry KPIs

    6
    MetricValueDetails
    Capital returns$50 millionUSD
    ROE operating ROE16.2%%
    Book value per share$167.92USD
    Net investment income4.85%%
    Net premiums written earned5%%
    Statutory regulatory capital$2.4 billionUSD

    Deals & partnerships

    3
    U.S. clientExtended a long-standing U.S. client relationship into Canada for evolving product offerings.

    Leveraged RGA's global platform, biometric expertise, and collaborative partnership model to secure an exclusive relationship.

    Multiple counterpartiesMultiple coinsurance transactions in Asia.

    Leveraged RGA's ability to reinsure both sides of the balance sheet, combining asset management and biometric expertise.

    Insurance companyExclusive transaction in EMEA to unlock value from an in-force portfolio.

    Leveraged RGA's biometric expertise. This model is expected to be replicated in EMEA and other parts of the world.

    Risks & headwinds

    4
    Higher effective tax rateQ1 FY26

    24.4%

    Corporate and Other segment operating lossQ1 FY26

    $65 million

    Negative impact to excess capitalQ1 FY26

    $200 million

    Variable investment income below expectationsQ1 FY26

    $8 million below 7% yearly return expectation

    What to watch in Q2 FY26

    5

    Ruby Re deployment

    FY26
    CurrentStill expected this year
    TargetFully deployed

    Why it matters

    Completion of Ruby Re deployment is key for capital management strategy and funding growth.

    Our current focus is on fully deploying Ruby Re, which is still expected this year.

    Q&A highlights

    7

    Does RGA have enough opportunities to meet or exceed the $1.5 billion deployment target for 8-10% EPS growth, given current excess and deployable capital?

    Axel Andre stated that capital deployment is tracking in line with expectations, prioritizing quality over quantity. He affirmed confidence in achieving financial targets through a combination of capital deployment and shareholder returns, leveraging strategic optionality.

    “We believe that we can achieve our financial targets through this combination of capital deployment and return of capital to shareholders.”

    asked by Suneet Kamath · answered by Axel Philippe Andre

    2 min read5 chapters

    Detailed Narrative

    01

    Global Platform and Strategic Optionality

    RGA's diversified global platform enables strategic optionality, allowing capital deployment into the most compelling risk-adjusted opportunities worldwide. This was evidenced by notable transactions in Asia, particularly Japan, spanning both in-force and flow deals combining asset and biometric risk. The company also extended a U.S. client relationship into Canada and completed an exclusive EMEA transaction leveraging biometric expertise to unlock in-force portfolio value, a model expected to be replicated globally.

    02

    Capital Deployment and Returns

    The company deployed $338 million into in-force transactions in the quarter, primarily in Asia, focusing on quality and expected returns that meet its risk-return trade-off. RGA also repurchased $50 million in shares this quarter, contributing to $175 million in total repurchases since Q3 2025. This is part of a balanced capital allocation strategy aiming for 20-30% total shareholder return of after-tax operating earnings over the long term⏳, alongside an expected $400 million allocation to reduce financial leverage in 2026.

    03

    Biometric Claims Experience and Future Earnings Impact

    Economic claims experience was favorable by $117 million in Q1, with a $4 million current period financial impact, primarily driven by U.S. individual life and favorable across all regions. Since the beginning of 2023, total economic claims experience has been favorable by $343 million. This deferred favorable experience is expected to be recognized over the remaining life of the business, with an estimated annual impact of approximately $20 million to future earnings.

    04

    Investment Portfolio and Private Credit Strategy

    The nonspread book yield, excluding variable investment income, was 4.85% in Q1, with a new money rate of 5.64%, providing a continued tailwind to the overall book yield. Private credit represents approximately 9% of the total portfolio, highly diversified across many issuers and asset categories, with the majority rated investment grade. This exposure is managed through a rigorous asset-liability management framework, with credit performance remaining healthy and in line with expectations.

    05

    U.S. Traditional Business and Strategic Initiatives

    U.S. Traditional premium growth was up approximately 1% YoY, impacted by strategic recaptures of lower-quality, less profitable blocks in the second half of 2025, which made year-over-year comparisons more challenging. Despite this, the company continues to see very strong momentum in its strategic underwriting initiatives, including record volumes, reinforcing RGA's biometric expertise advantage and improving the overall risk profile of the business.

    AI-generated summary of the company’s earnings call. Not investment advice.