Reinsurance Group of America, Incorporated, a global provider of life and health reinsurance, has reported Q1 2025 net income of $286 million, or $4.27 per diluted share, compared with $210 million, or $3.16 per diluted share, in the prior-year quarter.
The firm’s adjusted operating income is reported at $378 million, or $5.66 per diluted share, compared with $401 million, or $6.02 per diluted share, last year. The change has been attributed to net foreign currency fluctuations, which had an unfavourable effect of $0.09 per diluted share on net income available to RGA shareholders and on adjusted operating income.
For Q1’25, consolidated net premiums decreased by 25% to $4 billion, compared to $5.37 billion in Q1’24, with an adverse net foreign currency effect of $60 million.
Single premium pension risk transfer transaction from the US Financial Solutions business contributed approximately $85 million to the net income, compared with approximately $1.9 billion last year. After adjusting for these impacts, consolidated net premiums increased 13%.
The total net premium contribution by segment in 2025 was as follows: US and Latin America with $1.92 billion, Asia Pacific added $777 million, Europe, the Middle East, and Africa (EMEA) at $540 million, and Canada at $319 million.
The reinsurer’s ROE for Q1’25 was 7.5%, adjusted operating ROE was 13.4%, adjusted operating ROE, excluding notable items, of 15%, each for the trailing twelve months.
Compared with the year-ago period, excluding spread-based businesses, first quarter investment income increased 13%, primarily due to higher average invested assets.
Average investment yield decreased to 4.64% in Q1’25, compared with 4.70% last year, driven by lower variable investment income and lower yield on cash and cash equivalents, partially offset by higher new money rates.
In February, RGA partnered with subsidiaries of Equitable to reinsure a diversified block of life insurance products. Through this agreement, RGA is reinsuring 75% of Equitable’s in-force life insurance liabilities, consisting of approximately $18 billion of general account reserves and $14 billion of separate account reserves. The transaction is expected to close in mid-2025.
The reinsurer stated, “Robust balance sheet with estimated excess capital of $1.9 billion (before the impact of the Equitable Holdings, Inc. transaction), estimated deployable capital of $1.3 billion and ample liquidity.”
Tony Cheng, President and Chief Executive Officer, commented, “Our first quarter was very good, and we are off to a strong start for the year. Our Traditional business performed particularly well as our biometric claims experience was favourable in all geographic segments.
“We deployed $418 million into in-force transactions, not including the capital that we expect to deploy later this year for the transaction with subsidiaries of Equitable Holdings, Inc. (“Equitable”) that we announced in February. Further, we believe that the capital deployed was into high-quality transactions that we expect to deliver attractive returns over time. Recognising the macro uncertainties, we continue to see an attractive pipeline for both organic new business and in-force transactions, with a good balance between each.”
