AM Best has affirmed the A+ (Superior) financial strength rating for five subsidiaries of Reinsurance Group of America, maintaining a stable outlook as the life reinsurer posted record earnings despite expanding into higher-risk product lines that could fuel future volatility.
The rating agency also affirmed the Long-Term Issuer Credit Rating of "a-" (Excellent) for the parent company and all debt securities, citing "very strong" balance sheet strength and strong operating performance that offset concerns about exposure to annuities, longevity reinsurance and a moderate-sized long-term care block.
The A+ rating places RGA in the second-highest tier of AM Best's scale, just below the top A++ (Superior) category, industry standards showed.
RGA commands 74.45% market share within its directly reported competitive landscape as of Q1 2025, competitive intelligence data showed.
The ratings affirmation comes as RGA reported a 65% surge in full-year net income to US$1.18 billion in 2025, or US$17.69 per diluted share, up from US$10.73 in 2024. Adjusted operating return on equity excluding notable items reached 15.7%, while deployable capital stood at US$3.4 billion at year-end.
RGA deployed US$2.5 billion into in-force block transactions during 2025, led by a US$32 billion coinsurance deal with Equitable Holdings that required US$1.5 billion of capital to reinsure 75% of the insurer's individual life portfolio, company announcements showed.
The Equitable transaction, closed in July, included approximately US$18 billion of general account reserves and US$14 billion of separate account reserves. RGA expected the deal to contribute approximately US$70 million of adjusted operating income before taxes in 2025, rising to US$200 million per annum at maturity, company guidance indicated.
The deployment marked an acceleration from 2024, when RGA committed US$1.7 billion to in-force blocks including a landmark US$4 billion universal life transaction in Canada and a US$4 billion individual life annuities deal in Japan, performance data showed.
In-force block transactions have accelerated as carriers offload legacy portfolios at 60% to 85% of embedded value to improve solvency ratios, with competition intensifying as private equity-backed aggregators and pension funds join traditional reinsurers in bidding for assets, industry analysis indicated.
RGA's consolidated risk-adjusted capitalization measures at the strongest level according to Best's Capital Adequacy Ratio. The reinsurer operates with approximately 50% of revenue generated from international markets.
