Summary of RZB Q1 2026 Earnings Call

1Key Financial Results and Metrics

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

Adjusted Operating Return on Equity: 16.2% for the trailing twelve months.

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

Economic Claims Experience: Favorable by $117 million in Q1, with a cumulative favorable experience of $343 million since 2023.

Share Repurchases: $50 million in Q1, totaling $175 million since reinstating buybacks.

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

2Strategic Updates and Business Highlights

Strong performance across all regions, particularly in Asia Pacific and EMEA, driven by new business and favorable claims experience.

Successful execution of strategic underwriting initiatives in the U.S., contributing to robust individual life activity.

Continued focus on disciplined capital deployment, with $338 million allocated to in-force transactions in Q1.

Emphasis on leveraging competitive advantages, including biometric expertise and a diversified global platform.

Ongoing momentum in longevity transactions and strong client relationships, particularly in EMEA and Asia.

3Forward Guidance and Outlook

Confidence in achieving intermediate-term financial targets and long-term shareholder value.

Anticipation of continued strong fundamentals and a healthy pipeline for 2026 and beyond.

Expected variable investment income return of 7% for 2026, below long-term expectations of 10-12% due to muted real estate sales.

4Bad News, Challenges, or Points of Concern

Declining traditional premium growth in the U.S. attributed to strategic recaptures of lower-quality treaties.

Potential competitive pressures from European multiline reinsurers as the P&C cycle softens.

Increased scrutiny on regulatory capital calculations, with a $200 million negative adjustment impacting excess capital estimates.

The impact of the Equitable and Corebridge merger on existing flow reinsurance agreements remains uncertain.

5Notable Q&A Insights

Management expressed confidence in capital deployment strategies, indicating a focus on quality over quantity in transactions.

The favorable mortality trends in the U.S. were attributed to lower claim frequencies; however, the long-term impact of GLP-1 medications on mortality assumptions remains to be fully assessed.

The company does not foresee significant impacts from new U.K. regulations related to captive reinsurance, as most of their longevity business operates on a swap basis.

Future earnings recognition of the $343 million favorable economic claims experience is expected to be gradual, approximately $20 million annually. Overall, RZB demonstrated a strong start to 2026 with solid financial performance and strategic execution, while also navigating challenges related to competition and regulatory adjustments.