Reinsurance Group of America (RGA) has reported strong third-quarter results, with record adjusted operating income excluding notable items, driven by robust performance across Asia, EMEA, and US financial solutions businesses.
The global life and health reinsurer posted net income of US$253 million, or US$3.81 per diluted share, up from US$156 million, or US$2.33 per share, in the prior-year quarter. Adjusted operating income rose to US$310 million, or US$4.66 per share, compared with US$242 million, or US$3.62 per share, last year.
Excluding notable items, adjusted operating income reached a record US$424 million, or US$6.37 per diluted share, beating last year’s US$410 million, or US$6.13 per share.
Return on equity (ROE) stood at 7.4%, while adjusted operating ROE was 13.2%, or 14.2% excluding notable items, for the trailing twelve months.
RGA deployed approximately US$1.7 billion of capital during the quarter, including US$1.5 billion toward an in-force transaction with subsidiaries of Equitable Holdings, Inc., as part of its growing block acquisition strategy. The company also repurchased US$75 million of common shares and reported estimated deployable capital of US$3.4 billion.
“Our record third quarter operating results were strong and above expectations,” said Tony Cheng (pictured), president and CEO. “We saw exceptional performance in Asia Traditional and in our EMEA and US Financial Solutions businesses. The Equitable transaction contributed as expected, and our global diversification continues to be a key strength.”
Cheng said RGA’s pipeline remains “attractive and heavily weighted toward exclusive opportunities,” noting that the balance sheet “is strong, with estimated excess capital of US$2.3 billion.”
The company completed its annual actuarial assumption review, which resulted in a US$149 million unfavorable impact on third-quarter pre-tax operating income but a positive US$600 million effect on expected future cash flows.
Net premiums fell slightly to US$4.28 billion from US$4.39 billion a year earlier, largely reflecting the absence of a large single-premium pension transfer recorded in the prior period. Investment income rose 12.4% (excluding spread-based business), supported by a larger invested asset base, while average investment yield declined to 4.73% from 5.08%.
The effective tax rate for the quarter was 20.3% on pre-tax income and 19.6% on adjusted operating income, both below the company’s expected range, driven by jurisdictional mix and foreign tax benefits.
RGA’s board declared a quarterly dividend of US$0.93 per share, payable Nov. 25, 2025, to shareholders of record as of Nov. 11, 2025.
Looking ahead, Cheng said RGA remains confident in its growth trajectory. “We’re well-positioned in our markets with a proven strategy and a long track record of successful execution,” he said. “We expect to continue delivering attractive financial results in the future.”
RGA’s total assets stood at US$152 billion as of Sept. 30, up from US$120 billion a year earlier.
