Reinsurance Group of America (RGA) reported net income of US$180 million for the second quarter of 2025.
This compares with US$203 million during the same period last year. Adjusted operating income for the quarter was US$315 million, down from US$365 million in the prior-year quarter. Net foreign currency fluctuations added US$0.08 per diluted share to net income and US$0.12 per diluted share to adjusted operating income compared with last year.
Consolidated net premiums reached US$4.2 billion in the quarter, a 5.9% increase from the prior year, including a US$45 million favorable effect from foreign currency movements. The comparable period in 2024 included roughly US$280 million in premiums from a one-time US pension risk transfer transaction under the company’s Financial Solutions segment.
Investment income, excluding spread-based businesses, rose 36.5% compared to last year. RGA attributed the increase to higher average invested assets, stronger variable investment returns, and improved new money rates. The average investment yield for the quarter was 5.31%, up from 4.65% a year earlier.
The company reported an effective tax rate of 47% on pre-tax income for the quarter, higher than its anticipated range of 23% to 24%. RGA cited valuation allowances on foreign tax credits and tax expenses related to a legal entity restructuring as contributing factors.
During the quarter, RGA also finalized a reinsurance agreement with Equitable Holdings to assume 75% of a US life insurance block with approximately US$18 billion in general-account reserves. The transaction was supported by a US$700 million subordinated debenture issuance.
RGA expects this deal to contribute around US$200 million in annual pre-tax income going forward, adding to its long-term earnings base and aligning with its capital deployment strategy.
The company reported deploying US$307 million into in-force transactions during the same quarter, following a pattern of increased activity over the past year. For 2024, RGA recorded US$1.34 billion in adjusted operating income, supported by a series of block transactions and organic growth across multiple markets.
These second-quarter results follow a strong start to 2025. In the first quarter, RGA reported net income of US$286 million and adjusted operating income of US$378 million. The company deployed US$418 million in capital during that period and maintained an estimated US$1.3 billion in deployable capital, excluding the impact of the Equitable deal.
Tony Cheng, RGA’s president and CEO, said operating results came in below expectations due to claims volatility in the US Individual Life business, despite strong first-quarter performance.
“Looking forward, we remain optimistic about our business prospects,” Cheng said. “RGA is well positioned in its markets, with a proven strategy. We point to a long track record of successful execution, which has produced strong financial results, and we expect to continue to deliver attractive financial results in the future.”
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