REINSURANCE GROUP OF AMERICA INC
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
RGA$261.90-0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0000898174-25-000085
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000898174-25-000130
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 245 current paragraphs.
101 unchanged; 80 reworded; 49 added; 48 removed; 5 previous and 15 current paragraphs rearranged.
Tables are not compared: 25 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
Consolidated net income
Current report
•The increase in variable investment income and decrease in investment related losses were partially offset by unfavorable claims in the U.S. traditional segment and favorable impacts of in force management actions recognized in the prior year.
Current report
The increase in pre-tax income for the six months ended June 30, 2025, was primarily due to the following:
Current report
Fluctuations in foreign currency to U.S. Dollar exchange rates
Current report
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency exchange fluctuations increased income before income taxes by $10 million and $2 million for the three and six months ended June 30, 2025, respectively, primarily due to the strengthening of the British Pound and Japanese Yen compared to the U.S. dollar.
Current report
•For the three and six months ended June 30, 2025, changes in the fair value of freestanding derivatives decreased investment related losses, net by $50 million and $48 million, respectively, compared to an increase in investment related losses, net of $119 million and $218 million for the three and six months ended June 30, 2024, respectively.
Current report
The effective tax rate was 0.5% and 0.3% for the three and six months ended June 30, 2025, respectively, compared to 24.3% and 23.1% for the three and six months ended June 30, 2024. See Note 13 – “Income Tax” in the Notes to Condensed Consolidated Financial Statements for additional information on the Company’s consolidated effective tax rate.
Current report
•Unfavorable claims experience in the U.S Traditional segment in the current year and favorable impacts of in force management actions recognized in the prior year.
Current report
•An increase in variable investment income.
Current report
•Unfavorable claims experience in the U.S Traditional segment in the current year and favorable impacts of in force management actions recognized in the prior year.
Current report
•An increase in variable investment income.
Current report
Fluctuations in foreign currency to U.S. Dollar exchange rates
Current report
The decreases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to unfavorable claims experience in the Traditional segment in the current period compared to favorable impacts of in force management actions in the prior year, partially offset by improved variable investment income performance.
Current report
•The increase in net premiums and net investment income was primarily due to new business growth from recently executed in force transactions.
Current report
•The increase in adjusted claims and other policy benefits was primarily due to new business growth from recently executed in force transactions and unfavorable claims experience in individual life and group health reinsurance.
Current report
•The future policy benefits remeasurement loss is due to unfavorable individual life claims experience in the current period compared to favorable impacts of in force management actions in the prior year.
Current report
•The increase in net premiums and net investment income was primarily due to new business growth from recently executed in force transactions.
Current report
•The segment added new life business, measured by face amount of life reinsurance in force, of $82.3 billion and $76.9 billion during the six months ended June 30, 2025 and 2024, respectively.
Current report
•The increase in adjusted claims and other policy benefits was primarily due to new business growth from recently executed in force transactions.
Current report
•The decrease in adjusted claims and other policy benefits was primarily due to the single premium PRT transactions executed in the prior year.
Current report
The increase in adjusted operating income before income taxes for the three months ended June 30, 2025, was primarily due to organic growth and favorable experience in longevity business, partially offset by unfavorable experience in group business. The decrease in adjusted operating income before income taxes for the six months ended June 30, 2025, was primarily due to unfavorable experience in group business as compared to favorable experience in 2024, partially offset by favorable experience in longevity business and organic growth.
Current report
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in a decrease in adjusted operating income before income taxes of $4 million for the six months ended June 30, 2025. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Current report
The increase in adjusted operating income before income taxes for the three months ended June 30, 2025, was primarily due to organic growth, partially offset by unfavorable experience in group business. The decrease in adjusted operating income before income taxes for the six months ended June 30, 2025, was primarily due to unfavorable experience in group and life business as compared to favorable experience in 2024, partially offset by organic growth.
Current report
•The increase in the loss ratio for the three months ended June 30, 2025, was primarily due to unfavorable experience in group business in 2025.
Current report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $26.3 billion and $23.8 billion during the six months ended June 30, 2025 and 2024, respectively.
Current report
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to more favorable experience in longevity business and an increase in investment income.
Current report
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to increased net premiums and net investment income, partially offset by increased adjusted claims and other policy benefits and increased policy acquisition costs and other insurance expenses.
Current report
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in increases of $6 million and $7 million in adjusted operating income before income taxes for the three and six months ended June 30, 2025, respectively. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Current report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $97.5 billion and $58.0 billion during the six months ended June 30, 2025 and 2024, respectively.
Current report
•The decrease in the loss ratios for the three months ended June 30, 2025, was primarily due to improved mortality and morbidity claims experience. The increase for the six months ended June 30, 2025, was primarily due to adverse mortality and morbidity claims experience.
Current report
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to increases in net investment income, growth in closed block longevity business and increases in future policy benefits remeasurement gains.
Current report
•The increases in net premiums for the three and six months ended June 30, 2025, were primarily due to increased volumes on new and existing treaties.
Current report
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in increases of $4 million and $1 million in adjusted operating income before income taxes for the three and six months ended June 30, 2025, respectively. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Current report
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily the result of continuous growth in traditional reinsurance business.
Current report
•The increase in segment revenues reflected continuous growth in traditional reinsurance business through net premiums and net investment income.
Current report
•The increase in the loss ratio for the three months ended June 30, 2025, was primarily due to the lower future policy benefits remeasurement gains in the quarter due to more favorable claims experience in the prior year.
Current report
•The increase in net premiums was primarily due to continued traditional reinsurance business growth.
Current report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $28.8 billion and $30.7 billion during the six months ended June 30, 2025 and 2024, respectively.
Current report
•The increase in the loss ratio for the six months ended June 30, 2025, was primarily due to an increase in adjusted claims and other policy benefits and lower future policy benefits remeasurement gains.
Current report
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were driven by new business growth and higher investment returns partially offset by favorable impacts from surrender charges and market value adjustments related to lapses on a single premium annuity block of business in the prior year.
Showing the first 40 of 49 passages. Open the source sections for the rest.
Removed paragraphs (48)
Previous report
Consolidated income before income taxes
Previous report
The increase in income for the three months ended March 31, 2025, was primarily the result of the following:
Previous report
•Favorable claims and underwriting experience across all segments as compared to the prior period.
Previous report
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations decreased income before income taxes by $8 million primarily due to the weakening of the Canadian dollar as compared to the U.S. Dollar. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Previous report
•Changes in the fair value of freestanding derivatives increased investment related losses, net by $2 million in 2025, compared to $99 million in 2024.
Previous report
•Changes in the fair value of embedded derivatives associated with modco/funds withheld treaties, increased investment related losses, net by $11 million in 2025, compared to a decrease in investment related losses, net of $77 million in 2024.
Previous report
See the Investment section within Management Discussion and Analysis, Note 10 – “Investments” and Note 11 – “Derivative Instruments” in the Notes to Condensed Consolidated Financial Statements for additional information on the changes in allowance for credit losses, impairment losses and derivatives.
Previous report
The effective tax rate on a consolidated basis was 22.2% and 22.0% for 2025 and 2024, respectively. The effective tax rate for 2024 was greater than the U.S. Statutory rate of 21.0% primarily due to income in non-U.S. jurisdictions which were partially offset by the release of valuation allowances in non-U.S. jurisdictions. See Note 13 – “Income Tax” in the Notes to Condensed Consolidated Financial Statements for additional information.
Previous report
•Variable investment income was a net loss of $8 million for the three months ended March 31, 2025, compared to income of $10 million in the prior year.
Previous report
The decreases in adjusted operating income were partially offset by the following:
Previous report
•Favorable claims experience across all of the Company’s geographic Traditional segments, particularly the U.S. Traditional segment.
Previous report
Adjusted operating income before income taxes for the first three months of 2025 was lower than the first three months of 2024. The decrease in adjusted operating income before income taxes was primarily due to the runoff in asset-intensive, partially offset by favorable claims experience period over period and new business growth in the Traditional segment.
Previous report
(1)Includes adjusted claims and other policy benefits and future policy benefits remeasurement gains.
Previous report
•The increase in net investment income during the three months ended March 31, 2025, was primarily due to a higher invested asset base in 2025 due to new business growth.
Previous report
•The decrease in other revenues is primarily due to the runoff of asset-intensive business.
Previous report
•The decrease in adjusted operating income before income taxes for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to more favorable experience on the group lines of business in 2024 and unfavorable foreign currency fluctuations in the current period, partially offset by favorable longevity experience.
Previous report
•Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations in the Canadian dollar resulted in a $3 million decrease in adjusted operating income before income taxes for the three months ended March 31, 2025. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Previous report
The following table sets forth the Canada Traditional segment operating results for the periods indicated (dollars in millions):
Previous report
(1)Includes adjusted claims and other policy benefits and future policy benefits remeasurement (gains) losses.
Previous report
The decrease in adjusted operating income before income taxes for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to more favorable experience on the group lines of business in 2024 and unfavorable foreign currency fluctuations.
Previous report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $13.2 billion and $11.5 billion during the first three months of 2025 and 2024, respectively.
Previous report
The increase in adjusted operating income before income taxes for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to more favorable experience on longevity business, partially offset by unfavorable currency exchange fluctuations. The increases in net premiums, net investment income, adjusted claims and other policy benefits and policy acquisitions costs and other insurance expenses were due to a new asset-intensive transaction executed in the second quarter of 2024.
Previous report
•The increase in adjusted operating income before income taxes for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to increased net premiums and an increase in net investment income, partially offset by increased adjusted claims and other policy benefits and decreased policy acquisition costs and other insurance expenses.
Previous report
•Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in a $1 million increase in adjusted operating income before income taxes for the three months ended March 31, 2025. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Previous report
The following table sets forth the EMEA Traditional segment operating results for the periods indicated (dollars in millions):
Previous report
(1)Includes adjusted claims and other policy benefits and future policy benefits remeasurement gains.
Previous report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $63.4 billion and $38.0 billion during the three months ended March 31, 2025, and the same period in 2024, respectively.
Previous report
•The increase in the loss ratio for the first three months of 2025, as compared to the same period in 2024, was primarily due to change in business mix and experience.
Previous report
The following table sets forth the EMEA Financial Solutions segment operating results for the periods indicated (dollars in millions):
Previous report
•The increase in net premiums was primarily due to increased volumes of closed longevity block transactions.
Previous report
•Adjusted operating income before income taxes was relatively unchanged as an increase in revenue was offset by an increase in benefits and other expenses.
Previous report
•Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in a $3 million decrease in adjusted operating income before income taxes during the three months ended March 31, 2025. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Previous report
The following table sets forth the Asia Pacific Traditional segment operating results for the periods indicated (dollars in millions):
Previous report
(1)Includes adjusted claims and other policy benefits and future policy benefits remeasurement (gains) losses.
Previous report
The decrease in adjusted operating income before income taxes was primarily the result of less favorable underwriting results and lower variable investment income partially offset by favorable model updates.
Previous report
•The increase in net premiums was primarily due to continued business growth in the segment.
Previous report
•The segment added new life business production, measured by face amount of life reinsurance in force, of $14.3 billion and $17.6 billion during the three months ended March 31, 2025 and 2024, respectively, due to new business production.
Previous report
•The increase in net investment income was attributable to higher investment yield partially offset by a decrease in variable investment income.
Previous report
•The increase in the loss ratio for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to less favorable claims experience across the segment.
Previous report
The following table sets forth the Asia Pacific Financial Solutions segment operating results for the periods indicated (dollars in millions):
Showing the first 40 of 48 passages. Open the source sections for the rest.
Reworded paragraphs (80)
Previous wording
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance and growth potential of the Company and future developments associated with the previously announced transaction relating to the master transaction agreement that a Company subsidiary entered into with subsidiaries of Equitable Holdings, Inc., pursuant to which upon the closing thereof, the Company subsidiary would enter into coinsurance and modified coinsurance agreements with those counterparties (the “Reinsurance Transaction”). Forward-looking statements often contain words and phrases such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “pro forma,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.
Current wording
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance, and growth potential of the Company and future developments associated with the previously announced transaction relating to the master transaction agreement that a Company subsidiary entered into with subsidiaries of Equitable Holdings, Inc., pursuant to which on July 31, 2025, such Company subsidiary entered into coinsurance and modified coinsurance agreements with those counterparties (the “Reinsurance Transaction”). Forward-looking statements often contain words and phrases such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “pro forma,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.
Previous wording
Factors that could also cause results or events to differ, possibly materially, from those expressed or implied by forward-looking statements, include, among others: (1) adverse changes in mortality, morbidity, lapsation or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital and credit market conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (4) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines in the market value of assets subject to the Company’s collateral arrangements, (7) action by regulators who have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) the impairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (12) market or economic conditions that adversely affect the value of the Company’s investment securities or result in the impairment of all or a portion of the value of certain of the Company’s investment securities that in turn could affect regulatory capital, (13) market or economic conditions that adversely affect the Company’s ability to make timely sales of investment securities, (14) risks inherent in the Company’s risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (15) the fact that the determination of allowances and impairments taken on the Company’s investments is highly subjective, (16) the stability of and actions by governments and economies in the markets in which the Company operates, including ongoing uncertainties regarding the amount of U.S. sovereign debt and the credit ratings thereof, (17) the Company’s dependence on third parties, including those insurance companies and reinsurers to which the Company cedes some reinsurance, third-party investment managers and others, (18) financial performance of the Company’s clients, (19) the threat of natural disasters, catastrophes, terrorist attacks, pandemics, epidemics or other major public health issues anywhere in the world where the Company or its clients do business, (20) competitive factors and competitors’ responses to the Company’s initiatives, (21) development and introduction of new products and distribut…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Factors that could also cause results or events to differ, possibly materially, from those expressed or implied by forward-looking statements, include, among others: (1) adverse changes in mortality, morbidity, lapsation, or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital, and credit market conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (4) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines in the market value of assets subject to the Company’s collateral arrangements, (7) action by regulators that have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) the impairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (12) market or economic conditions that adversely affect the value of the Company’s investment securities or result in the impairment of all or a portion of the value of certain of the Company’s investment securities that in turn could affect regulatory capital, (13) market or economic conditions that adversely affect the Company’s ability to make timely sales of investment securities, (14) risks inherent in the Company’s risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (15) the fact that the determination of allowances and impairments taken on the Company’s investments is highly subjective, (16) the stability of and actions by governments and economies in the markets in which the Company operates, including ongoing uncertainties regarding the amount of U.S. sovereign debt and the credit ratings thereof, (17) the Company’s dependence on third parties, including those insurance companies and reinsurers to which the Company cedes some reinsurance, third-party investment managers, and others, (18) financial performance of the Company’s clients, (19) the threat of natural disasters, catastrophes, terrorist attacks, pandemics, epidemics or other major public health issues anywhere in the world where the Company or its clients do business, (20) competitive factors and competitors’ responses to the Company’s initiatives, (21) development and introduction of new products and distr…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and described in the periodic reports the Company files with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update these forward-looking statements, even though the Company’s situation may change in the future. For a discussion of these risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see Item 1A – “Risk Factors” in the 2024 Annual Report, as may be supplemented by Item 1A – “Risk Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q.
Current wording
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and described in the periodic reports the Company files with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update these forward-looking statements, even though the Company’s situation may change in the future, except as required under applicable securities law. For a discussion of the risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see Item 1A – “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as may be supplemented by Item 1A – “Risk
Previous wording
The Company is among the leading global providers of life reinsurance and financial solutions, with $4.0 trillion of life reinsurance in force and assets of $128.2 billion as of March 31, 2025. Traditional reinsurance includes individual and group life and health, disability and critical illness reinsurance. Financial Solutions includes longevity reinsurance, asset-intensive reinsurance, capital solutions, including financial reinsurance and stable value products. The Company derives revenues primarily from renewal premiums from existing reinsurance treaties, new business premiums from existing or new reinsurance treaties, fee income from Financial Solutions business and income earned on invested assets.
Current wording
The Company is among the leading global providers of life reinsurance and financial solutions, with $4.1 trillion of life reinsurance in force and assets of $133.5 billion as of June 30, 2025. Traditional reinsurance includes individual and group life and health, disability, and critical illness reinsurance. Financial Solutions includes longevity reinsurance, asset-intensive reinsurance, capital solutions, including financial reinsurance and stable value products. The Company derives revenues primarily from renewal premiums from existing reinsurance treaties, new business premiums from existing or new reinsurance treaties, fee income from Financial Solutions business and income earned on invested assets.
Previous wording
The Company’s Traditional business involves reinsuring life insurance policies that are often in force for the remaining lifetime of the underlying individuals insured, with premiums earned typically over a period of 10 to 30 years. To a lesser extent, the Company also reinsures health business typically reinsured for one to three years. Each year, however, a portion of the business under existing treaties terminates due to, among other things, lapses or voluntary surrenders of underlying policies, deaths of insureds, and the exercise of recapture options by ceding companies. The Company’s Financial Solutions business, includes significant asset-intensive and longevity risk transactions, which allow its clients to take advantage of growth opportunities and manage their capital, longevity and investment risk. The Company also works with partners to provide pension plan sponsors solutions that enable them to diversify and protect the benefits provided to the annuitants.
Current wording
The Company’s Traditional business involves reinsuring life insurance policies that are often in force for the remaining lifetime of the underlying individuals insured, with premiums earned typically over a period of 10 to 30 years. To a lesser extent, the Company also reinsures health business, typically for one to three years. Each year, however, a portion of the business under existing treaties terminates due to, among other things, lapses or voluntary surrenders of underlying policies, deaths of insureds, and the exercise of recapture options by ceding companies. The Company’s Financial Solutions business includes significant asset-intensive and longevity risk transactions, which allow its clients to take advantage of growth opportunities and manage their capital, longevity and investment risk. The Company also works with partners to provide pension solutions that enable plan sponsors to diversify and protect the benefits provided to the annuitants.
Previous wording
For its traditional business, the Company’s profitability largely depends on the volume and amount of death- and health-related claims incurred and the ability to adequately price the risks it assumes. While death claims are reasonably predictable over a period of many years, claims become less predictable over shorter periods and are subject to significant fluctuation from quarter to quarter and year to year. For longevity business, the Company’s profitability depends on the lifespan of the underlying contract holders and the investment performance for certain contracts. Additionally, the Company generates profits on investment spreads associated with the reinsurance of investment type contracts and generates fees from financial reinsurance transactions, which are typically shorter duration than its traditional life reinsurance business. The Company believes its sources of liquidity are sufficient to cover potential claims payments on both a short-term and long-term basis.
Current wording
For its traditional business, the Company’s profitability largely depends on the volume and amount of death- and health-related claims incurred and the ability to adequately price the risks it assumes. While death claims are reasonably predictable over a period of many years, claims become less predictable over shorter periods and are subject to significant fluctuation from quarter to quarter and year to year. For longevity business, the Company’s profitability depends on the lifespan of the underlying contract holders and the investment performance for certain contracts. Additionally, the Company generates profits on investment spreads associated with the reinsurance of investment type contracts and generates fees from financial reinsurance transactions, which are typically shorter duration than its traditional life reinsurance business. The Company believes that its sources of liquidity are sufficient to cover potential claims payments on both a short-term and long-term basis.
Previous wording
A discussion regarding the Company’s financial condition and results of operations for the three months ended March 31, 2025 and 2024 are presented below.
Current wording
A discussion of the Company’s financial condition and results of operations for the three and six months ended June 30, 2025 and 2024 is presented below.
Previous wording
•The increase in net premiums was primarily due to new business growth.
Current wording
The increase in pre-tax income for the three months ended June 30, 2025, was primarily the result of:
Previous wording
•During 2024, the Company recognized a non-economic loss at the inception of a single premium pension risk transfer (“PRT”). The non-economic loss at inception is the difference between the single premium received and the valuation of the initial reserve based on interest rates prescribed by U.S. GAAP.
Current wording
•During 2024, the Company recognized a non-economic loss at the inception of a single premium pension risk transfer (“PRT”) transaction. The non-economic loss at inception is the difference between the single premium received and the valuation of the initial reserve based on interest rates prescribed by U.S. GAAP.
Previous wording
•During 2025 and 2024, the Company repositioned its investment portfolio to generate higher yields which led to net capital losses of $51 million and $102 million, respectively.
Current wording
•During the three and six months ended June 30, 2025, the Company repositioned its investment portfolio to generate higher yields which led to net capital losses of $35 million and $86 million, respectively, compared to net capital losses of $162 million and $264 million for the three and six months ended June 30, 2024, respectively.
Previous wording
•The Company incurred $8 million and $39 million of changes in allowance for credit losses and impairments during the three months ended March 31, 2025 and 2024, respectively.
Current wording
•The Company incurred $68 million and $76 million of changes in allowance for credit losses and impairments during the three and six months ended June 30, 2025, respectively, compared to $18 million and $57 million during the three and six months ended June 30, 2024, respectively.
Previous wording
Market risk benefits represents the impact related to market risk benefits, which consist of guaranteed minimum benefits associated with the Company’s reinsurance of variable and indexed annuities. The changes in fair value of the freestanding derivatives purchased by the Company to hedge the liability are reflected in investment related gains (losses), net. The change in fair value of market risk benefits for guaranteed minimum benefits, after allowing for changes in the associated freestanding derivatives, decreased income before income taxes by $3 million and $9 million in 2025 and 2024, respectively.
Current wording
Market risk benefits represent the impact related to market risk benefits, which consist of guaranteed minimum benefits associated with the Company’s reinsurance of variable and indexed annuities. The change in fair value of the freestanding derivatives purchased by the Company to hedge the liability is reflected in investment related gains (losses), net. The change in fair value of market risk benefits for guaranteed minimum benefits, after allowing for changes in the associated freestanding derivatives, increased (decreased) income before income taxes by $1 million and $(2) million for the three and six months ended June 30, 2025, respectively. The change in fair value of market risk benefits for guaranteed minimum benefits, after allowing for changes in the associated freestanding derivatives, did not have any impact on the three months ended June 30, 2024, and resulted in a decrease to income before income taxes of $9 million for the six months ended June 30, 2024.
Previous wording
Non-economic changes in insurance liabilities include the initial loss on PRT transactions, net of amortization and changes in the fair value of embedded derivatives associated with the Company’s reinsurance of indexed products. The initial loss at inception of a PRT transaction is the difference between the single premium received and the valuation of the initial reserve based on interest rates prescribed by U.S. GAAP. During 2025 and 2024, the Company incurred non-economic losses of $6 million and $136 million, respectively.
Current wording
Non-economic changes in insurance liabilities include the initial loss on PRT transactions, net of amortization and changes in the fair value of embedded derivatives associated with the Company’s reinsurance of indexed products. The initial loss at inception of a PRT transaction is the difference between the single premium received and the valuation of the initial reserve based on interest rates prescribed by U.S. GAAP. The Company incurred non-economic losses of $23 million and $29 million for the three and six months ended June 30, 2025, respectively, compared to gains (losses) of $9 million and $(127) million for the three and six months ended June 30, 2024, respectively.
Previous wording
Non-GAAP Measure – Adjusted operating income before income taxes is not determined in accordance with U.S. GAAP. The Company principally uses adjusted operating income before income taxes in evaluating performance because the Company believes that such measure, when reviewed in conjunction with relevant U.S. GAAP measure (i.e., income before income taxes), presents a clearer picture of its operating performance and assist the Company in the allocation of its resources. The Company believes that this non-GAAP financial measure provides investors and other third parties with a better understanding of the Company’s results of operations, financial statements and the underlying profitability drivers and trends of the Company’s businesses by excluding specified items which may not be indicative of the Company’s ongoing operating performance and may fluctuate significantly from period to period. This measure should be considered supplementary to the Company’s financial results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Consequently, the Company’s non-GAAP financial measures may not be comparable to similar measures used by other companies.
Current wording
Non-GAAP Measure – Adjusted operating income before income taxes is not determined in accordance with U.S. GAAP. The Company principally uses adjusted operating income before income taxes in evaluating performance because the Company believes that such measure, when reviewed in conjunction with relevant U.S. GAAP measure (i.e., income before income taxes), presents a clearer picture of its operating performance and assists the Company in the allocation of its resources. The Company believes that this non-GAAP financial measure provides investors and other third parties with a better understanding of the Company’s results of operations, financial statements and the underlying profitability drivers and trends of the Company’s businesses by excluding specified items which may not be indicative of the Company’s ongoing operating performance and may fluctuate significantly from period to period. This measure should be considered supplementary to the Company’s financial results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Consequently, the Company’s non-GAAP financial measures may not be comparable to similar measures used by other companies.
Previous wording
Adjusted operating income (loss) before taxes is calculated as income (loss) before income taxes excluding, as applicable:
Current wording
Adjusted operating income (loss) before income taxes is calculated as income (loss) before income taxes excluding, as applicable:
Previous wording
•Non-economic losses at contract inception for direct pension risk transfer single premium business (which are amortized into adjusted operating income within claims and other policy benefits over the estimated lives of the contracts);
Current wording
•Non-economic losses at contract inception for direct pension risk transfer single premium business (which are amortized into adjusted operating income within adjusted claims and other policy benefits over the estimated lives of the contracts);
Previous wording
The decrease in investment related losses, net was partially offset by the following:
Current wording
The decrease in adjusted operating income before income taxes was partially offset by the following:
Previous wording
Three months ended March 31, 2025, compared to the three months ended March 31, 2024
Current wording
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
Previous wording
•A decrease in other income is due to a reduction in surrender charges related to a decline in lapses on a single premium block of business.
Current wording
•A decrease in other income due to a reduction in surrender charges related to a decline in lapses on a single premium block of business.
Previous wording
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations increased adjusted operating income before income taxes by $8 million due to the weakening of the Canadian dollar and British Pound as compared to the U.S. Dollar. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.
Current wording
Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency exchange fluctuations increased adjusted operating income before income taxes by $9 million and $1 million for the three and six months ended June 30, 2025, respectively, primarily due to the strengthening of the British Pound and Japanese Yen compared to the U.S. dollar.
Previous wording
The decrease in premiums was primarily due to single premium pension risk transfer (“PRT”) transactions completed during 2024. The PRT single premiums received were offset by an increase in benefits. Excluding the impact of the PRT transaction, premium increased due to organic growth on existing treaties and new business production, measured by the face amount of reinsurance in force, of $131.7 billion during 2025 compared to $109.1 billion during 2024. Consolidated assumed life reinsurance in force increased to $3,950.9 billion as of March 31, 2025, from $3,729.8 billion as of March 31, 2024, due to new business production and changes in foreign exchange rates.
Current wording
The increase in premiums for the three months ended June 30, 2025, was due to organic growth on existing treaties and new business production. The decrease in premiums for the six months ended June 30, 2025, was primarily due to single premium pension risk transfer (“PRT”) transactions completed during 2024. The PRT single premiums received were offset by increases in reserves. Organic growth and new business production, measured by the face amount of life reinsurance in force, were $242.6 billion and $198.7 billion during the six months ended June 30, 2025 and 2024, respectively. Consolidated assumed life reinsurance in force increased to $4,091.3 billion as of June 30, 2025, from $3,767.7 billion as of June 30, 2024, primarily due to new business production.
Previous wording
The increase in net investment income was primarily attributable to an increase in the average invested asset base and higher risk-free rates earned on new investments and higher yields earned on alternative and private asset classes, partially offset by a decrease in variable investment income associated with joint venture and limited partnership investments. The following summarizes the primary drivers contributing to the increase in net investment income for the three months ended March 31, 2025 and 2024:
Current wording
The increase in net investment income was primarily attributable to an increase in the average invested asset base, higher risk-free rates earned on new investments and an increase in variable investment income associated with joint venture and limited partnership investments. The following summarizes the primary drivers contributing to the increase in net investment income for the three and six months ended June 30, 2025 and 2024:
Previous wording
•The average invested assets at amortized cost, excluding spread related business, totaled $44.0 billion and $38.5 billion in 2025 and 2024, respectively.
Current wording
•The average invested assets at amortized cost, excluding spread related business, totaled $45.7 billion and$38.1 billion in 2025 and 2024, respectively.
Previous wording
•The average yield earned on investments, excluding spread related business, was 4.64% and 4.70% in 2025 and 2024, respectively. The decrease in investment yield for the three months ended March 31, 2025, in comparison with the same period in the prior year, was primarily due to decreased variable income from limited partnerships and real estate joint ventures and lower yield on cash and cash equivalents. These decreases were slightly offset by increased yield due to higher new money rates.
Current wording
•The average yield earned on investments, excluding spread related business, was 5.31% and 4.65% for the three months ended June 30, 2025 and 2024, respectively and 4.98% and 4.67% for the six months ended June 30, 2025 and 2024, respectively. The increase in investment yield for the three and six months ended June 30, 2025, in comparison with the same period in the prior year, was primarily due to higher risk-free rates earned on new investments and an increase in variable investment income associated with joint venture and limited partnership investments.
Previous wording
The average yield will vary from year to year depending on several variables, including the prevailing risk-fee interest rate and credit spread environment, prepayment fees and make-whole premiums, changes in the mix of the underlying investments and cash and cash equivalents balances. Variable investment income from joint ventures and limited partnerships will also vary from year to year and is highly dependent on the timing of dividends and distributions on certain investments. Investment income is allocated to the operating segments based upon average assets and related capital levels deemed appropriate to support segment operations.
Current wording
The average yield will vary from year to year depending on several variables, including the prevailing risk-free interest rate and credit spread environment, prepayment fees and make-whole premiums, changes in the mix of the underlying investments and cash and cash equivalents balances. Variable investment income from joint ventures and limited partnerships will also vary from year to year and is highly dependent on the timing of dividends and distributions on certain investments. Investment income is allocated to the operating segments based upon average assets and related capital levels deemed appropriate to support segment operations.
Previous wording
Adjusted operating income before income taxes for the U.S. and Latin America Traditional segment for the first three months of 2025 increased compared to the first three months of 2024 due to new business growth.
Current wording
Adjusted operating income before income taxes for the U.S. and Latin America Traditional segment for the three months ended June 30, 2025, decreased compared to the three months ended June 30, 2024, due to unfavorable claims experience in the current period, compared to favorable impacts of in force management actions in the prior year.
Previous wording
•The slight increase in policy acquisition costs and other insurance expenses as a percentage of net premiums was primarily due to varying allowance levels within coinsurance type arrangements and the mix of new business between coinsurance versus yearly renewable term.
Current wording
•The increase in policy acquisition costs and other insurance expenses as a percentage of net premiums was primarily due to varying allowance levels within coinsurance type arrangements and the mix of new business between coinsurance versus yearly renewable term.
Previous wording
The decrease in adjusted operating income before income taxes for the U.S. and Latin America Financial Solutions segment was primarily due to the runoff of asset-intensive business.
Current wording
The increase in adjusted operating income before income taxes for the U.S. and Latin America Financial Solutions segment was primarily due to an increase in variable investment income and higher investment yields.
Previous wording
•The book value of the invested asset base supporting asset-intensive transactions increased to $25.8 billion as of March 31, 2025, from $22.0 billion as of December 31, 2024, resulting in an increase in investment income partially offset by a decrease in variable investment income. As of March 31, 2025 and December 31, 2024, $3.2 billion and $3.3 billion, respectively, of the invested assets were funds withheld at interest, of which greater than 90% was associated with two clients.
Current wording
•The book value of the invested asset base supporting asset-intensive transactions increased to $25.5 billion as of June 30, 2025, from $22.1 billion as of June 30, 2024, resulting in an increase in investment income. As of June 30, 2025 and June 30, 2024, $3.1 billion and $3.5 billion, respectively, of the invested assets were funds withheld at interest, of which more than 90% was associated with two clients.
Previous wording
•The increase in the asset base was primarily due to $2.8 billion from new transactions and $1.0 billion of net organic growth.
Current wording
•The increase in the asset base was primarily due to $4.9 billion from new transactions and growth from treaties open to new business, offset by $1.5 billion in run-off of existing in force transactions.
Previous wording
•The increase in net premiums was primarily due to new group business and organic growth in all lines of business, mostly offset by unfavorable foreign currency fluctuations.
Current wording
•The increase in net premiums was primarily due to organic growth in all lines of business, partially offset by unfavorable foreign currency fluctuations.
Previous wording
•The increase in the loss ratio for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to more favorable experience on the group lines of business in 2024 and future policy benefits remeasurement losses in 2025 as compared to future policy benefits remeasurement gains in 2024.
Current wording
•The increase in the loss ratio for the six months ended June 30, 2025, was primarily due to unfavorable experience in group business in 2025 as compared to favorable experience in 2024 and future policy benefits remeasurement losses in 2025 as compared to future policy benefits remeasurement gains in 2024.
Previous wording
The Europe, Middle East and Africa (“EMEA”) operations consists of two major segments: Traditional and Financial Solutions. The Traditional segment primarily provides reinsurance through yearly renewable term and coinsurance agreements on a variety of life, health and critical illness products. Reinsurance agreements may be facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. The Financial Solutions segment consists of reinsurance and other transactions associated with longevity closed blocks, payout annuities, capital management solutions and financial reinsurance.
Current wording
The Europe, Middle East and Africa (“EMEA”) operations consist of two major segments: Traditional and Financial Solutions. The Traditional segment primarily provides reinsurance through yearly renewable term and coinsurance agreements on a variety of life, health and critical illness products. Reinsurance agreements may be facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. The Financial Solutions segment consists of reinsurance and other transactions associated with longevity closed blocks, payout annuities, capital management solutions and financial reinsurance.
Previous wording
The increase in adjusted operating income before income taxes for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to increased net premiums, decreased policy acquisition costs and other insurance expenses, partially offset by increased adjusted claims and other policy benefits.
Current wording
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to increased net premiums and net investment income, partially offset by increased adjusted claims and other policy benefits. The increases in adjusted operating income before income taxes for the six months ended June 30, 2025, were primarily due to increased net premiums and net investment income, decreased future policy benefits remeasurement losses, decreased policy acquisition costs and other insurance expenses, partially offset by increased adjusted claims and other policy benefits.
Previous wording
•The increase in net premiums was due to increased business volume on new and existing treaties in the first three months of 2025.
Current wording
•The increases in net premiums for the three and six months ended June 30, 2025, were primarily due to increased business volume on new and existing treaties.
Previous wording
•The increase in net investment income was primarily related to an increase in invested assets supporting the segment.
Current wording
•The increases in net investment income for the three and six months ended June 30, 2025, were primarily related to an increase in invested assets supporting the segment and an increase in new money rates.
Previous wording
•The increase in adjusted claims and other policy benefits was the result of increased volumes of closed block longevity and asset-intensive transactions.
Current wording
•The increases in adjusted claims and other policy benefits for the three and six months ended June 30, 2025, were the result of increased volumes of closed block longevity and asset-intensive transactions.
Previous wording
The Asia Pacific operations include business generated by its offices throughout Asia and Australia. The Traditional segment’s principal types of reinsurance include individual and group life and health, critical illness, disability and superannuation. Reinsurance agreements may be facultative or automatic agreements covering primarily individual risks, and in some markets, group risks. Superannuation is the Australian government mandated compulsory retirement savings program. Superannuation funds accumulate retirement funds for employees, and, in addition, typically offer life and disability insurance coverage. The Financial Solutions segment includes financial reinsurance, asset-intensive and certain disability and life blocks.
Current wording
The Asia Pacific operations include business generated by the Company’s offices throughout Asia and Australia. The Traditional segment’s principal types of reinsurance include individual and group life and health, critical illness, disability and superannuation. Reinsurance agreements may be facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. Superannuation is the Australian government mandated compulsory retirement savings program. Superannuation funds accumulate retirement funds for employees, and, in addition, typically offer life and disability insurance coverage. The Financial Solutions segment includes financial reinsurance, asset-intensive and certain disability and life blocks.
Previous wording
The increase in adjusted operating income before income taxes for the first three months of 2025 was primarily due to increased net investment income and increased net premiums, partially offset by increased adjusted claims and other policy benefits related to closed longevity blocks.
Current wording
The increases in adjusted operating income before income taxes for the three and six months ended June 30, 2025, were primarily due to increases in net premiums partially offset by decreases in future policy benefits remeasurement gains.
Previous wording
The invested asset base supporting asset-intensive transactions increased to $25.0 billion as of March 31, 2025, from $18.6 billion as of March 31, 2024. The increase in the asset base compared to March 31, 2024, was primarily due to approximately $4.5 billion from recently executed transactions and net organic growth of $1.9 billion from existing in-force blocks. The amount of reinsurance assumed from client companies, as measured by pre-tax statutory surplus, risk based capital and other financial reinsurance structures was $2.1 billion and $1.4 billion for the three months ended March 31, 2025 and 2024, respectively. Fees earned from this business can vary significantly depending on the size, complexity and timing of the transactions and, therefore, can fluctuate from period to period.
Current wording
The invested asset base supporting asset-intensive transactions increased to $26.9 billion as of June 30, 2025, from $19.4 billion as of June 30, 2024. The increase in the asset base compared to June 30, 2024, was primarily due to approximately $4.6 billion from recently executed transactions and net organic growth of $2.9 billion from existing in force blocks. The amount of reinsurance assumed from client companies, as measured by pre-tax statutory surplus, risk based capital and other financial reinsurance structures, was $2.3 billion and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively. Fees earned from this business can vary significantly depending on the size, complexity, and timing of the transactions and, therefore, can fluctuate from period to period.
Showing the first 40 of 80 pairs. Open the source sections for the rest.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q and in other periodic and current reports filed with the SEC.
Current report — wording carried from elsewhere
•A decrease in investment related losses resulting from lower unfavorable impacts from portfolio repositioning, in addition to gains on freestanding derivatives, compared to the prior year.
Current report — wording carried from elsewhere
•An increase in variable investment income from limited partnerships and real estate joint ventures and an increase in investment income attributable to an increase in invested assets and higher new money rate.
Current report — wording carried from elsewhere
The decrease in adjusted operating income before income taxes in 2025 was primarily the result of the following:
Current report — wording carried from elsewhere
•An increase in operating and financing costs to support new business growth.
Current report — wording carried from elsewhere
The decrease in adjusted operating income before income taxes was partially offset by the following:
Current report — wording carried from elsewhere
•An increase in investment income attributable to an increase in invested assets and higher new money rates.
Current report — wording carried from elsewhere
•The increase in policy acquisition costs and other insurance expenses as a percentage of net premiums was primarily due to varying allowance levels within coinsurance type arrangements and the mix of new business between coinsurance versus yearly renewable term.
Current report — wording carried from elsewhere
•The decrease in net premiums was primarily due to the single premium pension risk transfer (“PRT”) transactions executed in the prior year.
Current report — wording carried from elsewhere
•The increase in net premiums was primarily organic growth in all lines of business, partially offset by unfavorable foreign currency fluctuations.
Current report — wording carried from elsewhere
On March 13, 2023, the Company entered into a syndicated revolving credit facility with a five year term and an overall capacity of $850 million. See Note 18 – “Financing Activities” in the Notes to Consolidated Financial Statements in the 2024 Annual Report for further information.
Current report — wording carried from elsewhere
•Revolving credit facility– Drawing funds under a revolving credit facility which the Company had availability of $850 million as of June 30, 2025.
Current report — wording carried from elsewhere
•Federal Home Loan Bank (“FHLB”)– The Company has $537 million of funds available through collateralized borrowings from the FHLB as of June 30, 2025.
Current report — wording carried from elsewhere
•Committed Credit Facility– The Company’s subsidiaries, RGA Reinsurance Company and RGA Americas Reinsurance Company, Ltd. maintain a $200 million committed credit facility with a third-party financial institution to provide contingent capital to these entities.
Current report — wording carried from elsewhere
As of June 30, 2025, the Company could have borrowed these additional amounts without violating any of its existing debt covenants.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The following table sets forth the U.S. and Latin America Traditional segment operating results for the periods indicated (dollars in millions):
Previous report — wording carried elsewhere
•The increase in adjusted claims and other policy benefits was primarily due to new business growth.
Previous report — wording carried elsewhere
The following table sets forth the Canada Financial Solutions segment operating results for the periods indicated (dollars in millions):
Previous report — wording carried elsewhere
•The decrease in policy acquisition costs and other insurance expenses as a percentage of net premiums was largely due to an increase in premiums with lower allowances.
Previous report — wording carried elsewhere
•The decrease in other income is due to a reduction in surrender charges related to a decline in lapses on a single premium block of business.