RGA Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted Operating Income: $611 million, or $6.97 per share after tax.

Return on Equity: 16.2% for the trailing twelve months, excluding notable items.

Premium Growth: 5% year-over-year, with U.S. traditional premium growth at approximately 1%.

Capital Deployment: $338 million into in-force transactions; share repurchases totaled $50 million this quarter, with a total of $175 million since reinstating buybacks.

Excess Capital: Estimated at $2.4 billion, with deployable capital of $2.9 billion.

Economic Claims Experience: Favorable by $117 million for the quarter, with a cumulative favorable experience of $343 million since 2023.

2Strategic Updates and Business Highlights

Regional Performance: Strong results across Asia Pacific, EMEA, and U.S. markets, driven by disciplined execution and strategic underwriting initiatives.

Asia Pacific: Notable transactions in Japan, focusing on both asset and biometric risk.

EMEA: Continued momentum in longevity transactions, leveraging client relationships.

U.S. Market: Robust claims experience and strong performance in individual life, with strategic initiatives yielding positive results.

Capital Management: Ongoing focus on disciplined capital allocation, with a commitment to returning capital to shareholders while managing risk.

3Forward Guidance and Outlook

Confidence in 2026: Strong fundamentals and a healthy pipeline support optimism for continued growth.

Investment Income: Expected variable investment income return of 7% for 2026, below long-term expectations of 10-12%.

Long-Term Strategy: Focus on life and health risk with selective capital deployment to enhance returns.

4Bad News, Challenges, or Points of Concern

U.S. Traditional Premium Growth: Slower growth attributed to strategic recaptures of lower-quality treaties, impacting year-over-year comparisons.

Regulatory Adjustments: A $200 million negative impact from corrections to subsidiary regulatory capital calculations, though overall capital remains strong.

Market Competition: Increased competition from primary insurers establishing internal reinsurance captives and sidecars, potentially impacting market dynamics.

5Notable Q&A Insights

Capital Deployment Strategy: Management emphasized prioritizing quality over quantity in capital deployment, with a focus on compelling opportunities.

Mortality Trends: Favorable mortality experience attributed to lower claim frequencies; ongoing monitoring of GLP-1 drug impacts on future mortality assumptions.

Regulatory Environment: No significant expected impact from new regulations like Actuarial Guideline 55, as RGA's business model is robust against such changes.

In-Force Management Actions: While historically active, management indicated a more limited financial impact from future actions compared to recent years. Overall, RGA reported a strong start to 2026, with solid financial performance and strategic positioning, despite facing some competitive pressures and regulatory adjustments. The company remains focused on disciplined capital management and delivering long-term value to shareholders.