RGA Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Pre-tax Adjusted Operating Income: $761 million, or $8.89 per share after tax.

Adjusted Operating Return on Equity: 18.4% over the trailing 12 months.

Traditional Premium Growth: 2.2% growth (0.9% constant currency); total premiums excluding PRT grew 10.5% (9.3% constant currency).

Investment Performance: Core portfolio yield at 4.96%, new money rate at 6.02%. Annualized returns for variable investment income (VII) at 15% for the quarter and 11% year-to-date.

Capital Management: Returned $111 million to shareholders, including $50 million in share repurchases and a 5.4% increase in dividends.

2Strategic Updates and Business Highlights

Strong performance across all regions, particularly in Asia Pacific and EMEA, driven by new business and investment income.

Continued focus on biometric expertise and risk management, with successful underwriting programs in the U.S. leading to growth.

Significant capital deployment of nearly $500 million year-to-date into in-force transactions, with a disciplined approach to capital allocation.

New business activity remains robust, with a healthy pipeline and strategic underwriting programs expected to double in volume.

3Forward Guidance and Outlook

RGA maintains confidence in meeting or exceeding intermediate-term financial targets, including 8%-10% EPS growth and 13%-15% ROE.

The company expects to use $400 million of excess capital to pay down debt in September.

Anticipates continued favorable claims experience and investment returns, with a strong focus on capital stewardship.

4Bad News, Challenges, or Points of Concern

Traditional premium growth in the U.S. faced challenges due to in-force management actions, impacting overall growth metrics.

The corporate segment reported an adjusted operating loss of $35 million, although this was better than expectations.

Concerns regarding the potential impact of regulatory changes in Hong Kong on the business, particularly in the MCB sector.

The company remains cautious about the appetite for legacy liabilities, maintaining a selective approach to ULSG and LTC risks.

5Notable Q&A Insights

Management emphasized the importance of their underwriting programs and the quality of new business, which are expected to drive future growth.

The reduction of capped cohort exposure by 25% was highlighted as a priority for reducing earnings volatility.

There was a discussion on the impact of one-time items contributing to earnings this quarter, with assurances that these are not indicative of ongoing trends.

Management reiterated their commitment to disciplined capital management and the flexibility to return capital to shareholders if market opportunities do not align with their return expectations. Overall, RGA reported a record operating quarter with strong fundamentals and a healthy outlook, despite facing some challenges in premium growth and regulatory uncertainties.