ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA) ("RGA†) announced today that it has priced an aggregate principal amount of $400,000,000 of 6.375% Fixed-Rate Reset Subordinated Debentures due 2056 (the "2056 Debentures†) pursuant to an underwritten registered public offering (the "Offering†). The 2056 Debentures have a maturity date of September 15, 2056, an issue price of 100.000% and feature a fixed-rate coupon of 6.375%, payable semiannually in arrears. RGA expect ...

Table of Contents REINSURANCE GROUP OF AMERICA, INCORPORATED UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2025 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 1-11848 Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well- ...

Market Performance - The three major U.S. stock indices closed higher, with the Dow Jones up 0.04%, the Nasdaq up 0.9%, and the S&P 500 up 0.47% [1] - Major technology stocks saw significant gains, with Oracle rising over 9%, Microsoft and Broadcom up over 3%, and Nvidia and Meta up over 2% [1] Sector Performance - Cryptocurrency mining companies, precious metals, and non-ferrous metals led the gains, with Vista Gold up over 14%, Hut 8 up over 7%, and Pan American Silver up over 6% [1] - Other notable performers included Alcoa and Royal Gold, both rising over 5%, and Southern Copper up over 4% [1] - Retail and insurance brokerage sectors faced declines, with Macy's and Kohl's both down over 5%, and the American Reinsurance Group down over 2% [1] Chinese Stocks - The Nasdaq Golden Dragon China Index rose 0.12%, with notable gains in Chinese concept stocks such as Kingsoft Cloud, Pony.ai, and JinkoSolar, which rose up to 3.79% [1] - Other gainers included Zai Lab up 2.44%, Huazhu up 1.66%, while companies like Yum China, XPeng, Ctrip, Bilibili, NIO, Li Auto, and New Oriental experienced declines, with New Oriental down 4.24% [1]

Market Performance - The US stock indices all closed higher, with the Nasdaq rising nearly 1%, the Dow Jones slightly up, and the S&P 500 increasing by 0.5%, nearing its historical high [1] - The Dow Jones closed at 50,135.87, up by 20.20 points (0.04%), the Nasdaq at 23,238.67, up by 207.46 points (0.90%), and the S&P 500 at 6,964.82, up by 32.52 points (0.47%) [2] Technology Sector - Major US tech stocks rebounded after a recent sell-off triggered by AI concerns, with the tech giants index rising by 1.02% [2] - Microsoft saw an increase of over 3%, while Nvidia and Facebook rose by over 2%. However, Apple and Amazon experienced declines of over 1% and 0.76%, respectively, marking Amazon's fifth consecutive day of decline [2] Chip Sector - The chip stock index increased by 1.9%, with Oracle rising over 9%, and Microsoft and Broadcom up by over 3%. In contrast, Micron Technology and SanDisk fell by nearly 3% [3] Commodity Market - Gold prices continued their upward trend, with spot gold rising nearly 2% to surpass $5,050. COMEX gold increased by over 2%, while spot silver rose by over 7% and COMEX silver by 8% [6][7] - Crude oil prices rose by over 1%, influenced by new US guidelines for ships passing through the Strait of Hormuz [6] Employment and Inflation Data - Upcoming US non-farm payroll and CPI reports are expected to provide important insights into the Federal Reserve's monetary policy direction, with potential for significant market volatility if the data indicates "weak employment + stubborn inflation" [8] - Current probabilities for Federal Reserve interest rate changes indicate a 17.7% chance of a 25 basis point cut by March and a 50.4% chance of a 25 basis point cut by June [8]

Core Insights - Reinsurance Group of America, Incorporated (RGA) reported strong fourth-quarter 2025 adjusted operating earnings of $7.75 per share, exceeding the Zacks Consensus Estimate by 32.3% and reflecting a 55.3% increase year over year [2][10] - The company's operating revenues reached $6.8 billion, surpassing the Zacks Consensus Estimate by 10.9% and showing a year-over-year growth of 23.4% driven by higher net investment income [3][10] Financial Performance - Net premiums for RGA totaled $4.8 billion, marking a 15% increase year over year and beating the Zacks Consensus Estimates by 9.5% [7] - Investment income rose significantly by 42.7% from the prior-year quarter to $1.7 billion, also exceeding the Zacks Consensus Estimates by 13.6% [7] - The average investment yield improved to 5.2% from 4.8% in the previous year, attributed to higher variable investment income [7] Segment Performance - RGA's performance was robust in the Asia/Pacific, U.S., Latin America, and Canada segments, although it faced challenges in the Europe, Middle East, and Africa (EMEA) segment and the Corporate and Other segments [4][10] - In the U.S. and Latin America, total pre-tax adjusted operating income was $325 million, a 43.2% increase year over year, with the Traditional segment contributing $222 million, up 47% [11] - Canada saw a 60% year-over-year increase in pre-tax adjusted operating income to $64 million, with net premiums growing 4.2% to $347 million [12] Full-Year Highlights - For the full year 2025, adjusted operating earnings were $22.72 per share, slightly above the Zacks Consensus Estimate of $22.57, reflecting a 13.3% year-over-year increase [18] - Total revenues for 2025 reached $23.9 billion, modestly exceeding the consensus estimate of $23.6 billion, while net premiums declined by 3.4% to $17.2 billion [18] Capital Deployment - RGA deployed $2.5 billion into in-force block transactions, including $1.5 billion into a transaction with subsidiaries of Equitable Holdings, Inc. [20] - The company repurchased shares worth $50 million in the quarter and $125 million in total for 2025 [20] - A quarterly dividend of 93 cents was declared, with payment scheduled for March 3, 2026 [20] Financial Position - As of December 31, 2025, RGA's total assets were $156.6 billion, reflecting a 32% year-over-year increase [19] - Book value per share, excluding accumulated other comprehensive income, rose 8.8% year over year to $164.66 [19] - Adjusted operating return on equity was 14.7%, representing a 90-basis-point increase from the previous year [19]

Core Insights - RGA reported record pre-tax adjusted operating income of $515 million for the quarter, driven by new business earnings, favorable in-force management actions, and strong investment performance [1] - The company achieved record operating EPS of $7.75 for Q4 2025 and a trailing 12-month adjusted operating ROE of 15.7%, exceeding its target range of 13% to 15% [4][7] - RGA plans to deploy approximately $1.5 billion in in-force transactions for 2026 and expects to utilize about $400 million of excess capital to reduce leverage [6][16] Financial Performance - RGA's full-year 2025 results included a 15.7% ROE and an 18% increase in the value of in-force business margins [3] - The company deployed $2.5 billion into in-force transactions during 2025 and ended Q4 with approximately $2.7 billion of excess capital [3][7] - In Q4, RGA's in-force management actions had a favorable financial impact of $95 million [7] Business Segments - Management noted favorable results in the U.S. due to in-force management actions and variable investment income, while individual life mortality was in line with expectations [2] - EMEA experienced strong volume growth and favorable experience, and APAC continued to show growth momentum [2] - RGA is exiting the U.S. group healthcare market, which represents about $400 million of annual premium and approximately $25 million of pre-tax run-rate earnings [5][13] Capital Management - RGA reinstated share repurchases totaling $125 million since the program's reinstatement in Q3 2025, targeting a total payout ratio of 20% to 30% [8] - The company expects an effective tax rate of 22% to 23% for 2026 and anticipates a 7% variable investment income return [10] - Management emphasized a balanced approach between reinvesting in attractive opportunities and returning capital to shareholders [8] Strategic Transactions - The Equitable transaction is expected to contribute approximately $160 million to $170 million in earnings for 2026, with several drivers of economic upside identified [15] - RGA's management described expectations for in-force management actions in 2026 as more limited compared to previous years [11] - The company remains selective regarding legacy risks, with ULSG and LTC liabilities expected to remain below 10% of the balance sheet [14] Market Outlook - RGA's Chief Investment Officer noted modest exposure to software-related investments in direct lending and ongoing assessment of AI disruption across the portfolio [17] - Management highlighted a "rich and diverse" pipeline across regions, particularly in Asia and U.K. longevity [18]

Core Insights - Reinsurance Group of America, Incorporated (RGA) is a global leader in the reinsurance industry, providing life and health-related reinsurance solutions and competing with major firms to maintain its market position through strategic growth and innovation [1] Financial Performance - Piper Sandler set a new price target of $263 for RGA, indicating a potential 15.5% increase from the current stock price of $227.70, reflecting confidence in RGA's future performance [2][6] - RGA's stock price recently showed a 10.20% increase, or $21, indicating positive market sentiment [2][6] - The company's Q4 2025 earnings call provided insights into financial health, revenue growth, and strategic plans, with discussions from C-suite executives on future outlook and market conditions [3][6] Market Activity - RGA's stock has shown volatility, with prices fluctuating between a low of $218.58 and a high of $229.17 on a recent trading day, and over the past year, the stock reached a high of $229.21 and a low of $159.25 [4] - The company's market capitalization is approximately $14.92 billion, with a trading volume of 662,902 shares on the NYSE [4] Strategic Focus - RGA's performance and market position are closely monitored by investors and analysts, with the company's ability to navigate market conditions and capitalize on growth opportunities being crucial for achieving the new price target set by Piper Sandler [5]

Financial Data and Key Metrics Changes - The company reported Q4 operating EPS of $7.75 per share, marking the second consecutive record quarter in earnings [6] - Adjusted operating return on equity (ROE) for the trailing 12 months was 15.7%, exceeding the intermediate-term target range of 13%-15% [6][18] - For the full year 2025, the company achieved record operating EPS and increased the value of in-force business margins by 18% [6][13] Business Line Data and Key Metrics Changes - In the U.S., favorable results were driven by management actions and variable investment income, with individual life mortality in line with expectations [7] - EMEA results showed strong volume growth and favorable experience, with full-year pre-tax earnings up 35% [11] - APAC region reported an 18% increase in pre-tax operating income, reflecting strong underlying growth and favorable underwriting experience [10] Market Data and Key Metrics Changes - Premium growth was 7.4% year-to-date on a constant currency basis, benefiting from strong growth across North America, EMEA, and APAC [19] - The U.S. healthcare business has approximately $400 million of annual premium, generating about $25 million of pre-tax run rate earnings in a typical year [43] Company Strategy and Development Direction - The company plans to exit the group healthcare lines of business after 2026, focusing on strategically aligned businesses [12][43] - The strategy includes optimizing the balance sheet, enhancing risk-adjusted investment returns, and maintaining a focus on capital stewardship [15][16] - The company aims for a balanced approach to capital deployment, targeting a total payout ratio of 20%-30% for buybacks and dividends [37][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet or exceed intermediate-term financial targets, citing strong momentum and a clear focus on strategy [16][33] - The company anticipates a more limited financial impact from in-force management actions in 2026 compared to recent years [24][91] - Management noted that higher interest rates are beneficial for overall earnings, given positive reinvestment cash flows [95] Other Important Information - The company deployed $2.5 billion of capital into in-force transactions for the full year, with $98 million in Q4 [19][20] - The effective tax rate for Q4 was 23.8%, with an expectation of 22%-23% for 2026 [20] - The company reported an estimated excess capital of $2.7 billion at the end of the quarter [30] Q&A Session Summary Question: Capital allocation and payout ratio - Management confirmed the target of a 20%-30% total payout ratio while maintaining flexibility for capital deployment [37] Question: Group health rate actions and business exit - Significant rate actions were taken, including a 40% average increase, and the decision to exit the group healthcare business was driven by strategic alignment [42][43] Question: Equitable block performance - The Equitable transaction is expected to generate $160 million-$170 million of earnings in 2026, with various factors contributing to economic upside [49] Question: Long-term care risk transfer deal performance - Management expressed satisfaction with the long-term care business performance, aligning with risk appetite and return expectations [62] Question: Investment portfolio exposure to software-related companies - The company has modest exposure to software lending, and AI impacts are actively monitored across the portfolio [67][68] Question: Regulatory changes in Europe and competition - Management noted no significant competitive threats arising from regulatory changes in Europe, focusing on opportunities with both asset and biometric risks [76][78] Question: Attractive regions or product lines for 2026 - The company highlighted a strong pipeline in Asia and the U.K. longevity market, with optimism about delivering attractive returns [81]

Financial Data and Key Metrics Changes - The company reported Q4 operating EPS of $7.75 per share, marking the second consecutive record quarter in earnings [6] - Adjusted operating return on equity (ROE) for the trailing 12 months was 15.7%, exceeding the intermediate-term target range of 13%-15% [6][17] - For the full year 2025, the company achieved record operating EPS and increased the value of Inforce business margins by 18% [6][10] Business Line Data and Key Metrics Changes - The U.S. market showed favorable results driven by management actions and variable investment income, with individual life mortality in line with expectations [8] - EMEA results reflected strong volume growth and favorable experience, with full-year pre-tax earnings up 35% [11] - APAC continued to see growth momentum, with pre-tax operating income up 18% for the year [10][11] Market Data and Key Metrics Changes - Premium growth was 7.4% year-to-date on a constant currency basis, benefiting from strong growth across North America, EMEA, and APAC [18] - The U.S. healthcare business has approximately $400 million of annual premium, generating about $25 million of pre-tax run rate earnings [39] Company Strategy and Development Direction - The company is focused on a proactive business approach, optimizing its balance sheet, operational scaling, and capital stewardship to generate long-term shareholder value [14][15] - A strategic review led to the decision to exit the group healthcare lines of business, with a focus on deploying capital in strategically aligned businesses [12][39] - The company aims to maintain a balanced approach to capital deployment, targeting a total payout ratio of 20%-30% for buybacks and dividends [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate attractive shareholder value going forward, supported by a strong pipeline of opportunities across various regions [16][77] - The company anticipates a more limited financial impact from Inforce management actions in 2026 compared to recent years [22][83] - Higher interest rates are viewed positively for overall earnings, with modest exposure to disintermediation risk from higher rates [89] Other Important Information - The company successfully repurchased $50 million of shares in Q4, totaling $125 million since reinstating buybacks [10][18] - The effective tax rate for Q4 was 23.8%, with expectations for 2026 in the range of 22%-23% [18] Q&A Session Summary Question: Capital allocation and payout ratio - Management confirmed the target of a 20%-30% total payout ratio while maintaining flexibility for capital deployment [32] Question: Group health rate actions and exit strategy - Significant rate actions were taken, including a 40% average increase, and the decision to exit the group healthcare business was driven by strategic alignment [38][39] Question: Performance of the Equitable block - The Equitable transaction is expected to generate earnings of $160-$170 million in 2026, with various drivers of economic upside identified [45][46] Question: Long-term care risk transfer deal performance - Management expressed satisfaction with the long-term care business performance, aligning with risk appetite and return expectations [57] Question: Exposure to software-related companies and AI disruption - The company has modest exposure to software lending and actively assesses the impact of AI on the investment portfolio [62] Question: Regulatory changes in Europe and competition - Management noted no significant competitive threats arising from regulatory changes in Europe, focusing on opportunities with both asset and biometric risks [72][73]

Financial Data and Key Metrics Changes - The company reported Q4 operating EPS of $7.75 per share, marking the second consecutive record quarter in earnings [4] - Adjusted operating return on equity (ROE) for the trailing 12 months was 15.7%, exceeding the intermediate-term target range of 13%-15% [4][14] - Full year 2025 results included record operating EPS and a 15.7% ROE, with Inforce business margins increasing by 18% [4][5] Business Line Data and Key Metrics Changes - The U.S. region showed favorable results driven by management actions and variable investment income, with individual life mortality in line with expectations [5] - EMEA results reflected strong volume growth and favorable experience, while APAC continued to see growth momentum [5][9] - The Equitable block contributed positively, with earnings consistent with guidance for the second half of 2025 and expected earnings of $160-$170 million in 2026 [21][34] Market Data and Key Metrics Changes - Premium growth was 7.4% year-to-date on a constant currency basis, benefiting from strong growth across North America, EMEA, and APAC [16] - The APAC region produced excellent bottom-line results for the year, with pre-tax operating income up 18% [8][9] - EMEA's full year pre-tax earnings were up 35%, reflecting strong new business growth [9] Company Strategy and Development Direction - The company is focused on four key areas: proactive business approach, balance sheet optimization, operational scaling, and capital stewardship [12] - A strategic review led to the decision to exit the group healthcare lines of business, with significant rate increases implemented [10][31] - The company aims to maintain a balanced approach to capital deployment while returning capital to shareholders [28][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate attractive shareholder value going forward, supported by a strong pipeline of opportunities [13][48] - The company anticipates a more limited financial impact from Inforce management actions in 2026 compared to recent years [20][52] - The expected tax rate for 2026 is projected to be in the range of 22%-23% [16] Other Important Information - The company ended the quarter with estimated excess capital of $2.7 billion and deployable capital of $3.4 billion for the next 12 months [16][24] - The non-spread book yield was slightly higher than Q3, driven by new money rates exceeding portfolio yields [24] Q&A Session Summary Question: Capital allocation and payout ratio - Management confirmed the target of a 20%-30% payout ratio remains appropriate, balancing capital deployment with shareholder returns [27][28] Question: Group health rate actions and business exit - Significant rate increases of 40% were implemented, and the decision to exit the group healthcare business was driven by strategic alignment [30][31] Question: Long-term care risk transfer deal performance - Management expressed satisfaction with the long-term care business performance, aligning with risk appetite and return expectations [39] Question: Exposure to software-related companies and AI disruption - The company has minimal exposure to software lending and is actively managing the portfolio in light of AI trends [41] Question: Regulatory changes in Europe and competition - Management noted no significant competitive threats arising from regulatory changes, focusing on opportunities with both asset and biometric risks [44][46] Question: Opportunities in specific regions or product lines - The company highlighted strong pipelines in Asia and the UK longevity market, with optimism about future returns [47][48]