RZC — 7.125% Fixed-Rate Reset Subordinated Debentures due 2052

Summary of RGA Q1 2026 Earnings Call

1. Key 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 overall; U.S. traditional premium growth was approximately 1%.
• 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.
• Economic Claims Experience: Favorable by $117 million for the quarter, with cumulative favorable experience of $343 million since 2023.

2. Strategic Updates and Business Highlights

• Regional Performance: Strong results across Asia Pacific, EMEA, and the U.S. driven by disciplined execution and strategic underwriting initiatives.
• Asia Pacific: Notable transactions in Japan, contributing to ongoing growth.
• EMEA: Continued momentum in longevity transactions, leveraging client relationships.
• U.S. Individual Life: Robust activity supported by favorable claims experience and strategic initiatives.
• Capital Deployment: $338 million into in-force transactions, with a focus on high-quality opportunities.
• Private Credit Strategy: Represents 9% of the total portfolio, emphasizing diversification and investment-grade assets.

3. Forward Guidance and Outlook

• 2026 Outlook: Confidence remains high, with strong fundamentals and a healthy pipeline.
• Investment Income: Expected variable investment income return of 7%, below long-term expectations of 10-12% due to a muted real estate environment.
• Shareholder Returns: Anticipated total return of capital between 20% to 30% of after-tax operating earnings over the long term.

4. Bad News, Challenges, or Points of Concern

• U.S. Traditional Premium Growth: Slower growth attributed to strategic recaptures of less profitable treaties in 2025, impacting year-over-year comparisons.
• Regulatory Adjustments: A $200 million negative impact from corrections in subsidiary regulatory capital calculations.
• Market Competition: Increased competition from multiline European reinsurers and U.S. primary insurers establishing internal reinsurance captives could pressure margins.

5. Notable Q&A Insights

• Capital Deployment: Management expressed confidence in meeting financial targets through a combination of capital deployment and shareholder returns, emphasizing quality over quantity in transactions.
• Mortality Favorability: Favorable claims experience attributed to lower frequency of claims; ongoing monitoring of trends related to GLP-1 drugs and their potential impact on mortality assumptions.
• In-Force Management: No notable actions taken in Q1, with expectations for limited financial impact in the near term.
• Regulatory Environment: AG 55 regulations expected to have minimal impact on RGA due to existing practices and strong capital position.

Overall, RGA reported a strong start to 2026, with solid financial performance and strategic initiatives driving growth, despite facing challenges related to competition and regulatory adjustments.