Reinsurance Group of America (RGA) posted a 65% surge in full-year net income, delivering US$1.18 billion to shareholders in 2025 as record quarterly results offset a sharp pullback in pension risk transfer activity.
The life and health reinsurer earned US$17.69 per diluted share for the year, up from US$10.73 in 2024. Adjusted operating income climbed to US$1.52 billion, or US$22.72 per share, while adjusted operating ROE excluding notable items hit 15.7%.
Fourth-quarter profits drove much of the gains. Net income tripled to US$463 million from US$148 million a year earlier. Adjusted operating income rose 54% to US$515 million.
The quarter capped a strong second half. In the third quarter, RGA posted net income of US$253 million and record adjusted operating income excluding notable items of US$424 million. Asia, EMEA, and the US financial solutions business powered results in both periods.
Consolidated net premiums jumped 15% to US$4.8 billion in the fourth quarter. But full-year premiums slipped 3.4% to US$17.2 billion, weighed down by a collapse in pension risk transfer volumes.
Single premium PRT transactions contributed just US$300 million in 2025, down from US$2.9 billion a year earlier.
The retreat was not unique to RGA. October Three's Mark Unhoch noted that uncertainty around economic conditions and litigation has prompted companies to delay pension risk transfers, particularly jumbo deals.
Legal & General data shows market volatility curbed the number of US transactions exceeding US$1 billion in 2025, even as overall activity remained elevated.
LIMRA figures put total US single-premium PRT volume at US$51.8 billion in 2024, up 14% year on year. Seven jumbo transactions that year totaled approximately US$22 billion – a concentration that amplified the 2025 shortfall when large deals failed to materialize.
Aon estimates full-year 2025 US PRT premiums at US$45–US$50 billion, with fourth-quarter settlements exceeding the first three quarters combined.
RGA deployed US$2.5 billion into in-force block transactions during 2025 and bought back US$125 million in shares. Deployable capital stood at US$3.4 billion at year-end.
President and chief executive Tony Cheng (pictured above) said contributions from most segments demonstrated "the strength and diversity of our global platform and local teams."
Financial metrics have tracked at or ahead of targets since the company launched its current strategy cycle in 2023, he added.
"Our balance sheet is strong, business conditions are favorable, and we have a proven strategy that I expect to result in attractive financial results over time," Cheng said.
