Reinsurance Group of America Q2 Earnings Call Highlights

RGA generated $761 million in pretax adjusted operating income, or $8.89 per share after tax, with an 18.4% trailing-12-month adjusted ROE. Strong investment income, new business and favorable claims experience drove results. Investment and claims results exceeded expectations: Core portfolio yield reached 4.96%, while variable investment income produced a 15% annualized return for the quarter. Economic claims were $31 million better than expected, contributing a $14 million earnings benefit. Capital deployment remained active: RGA invested $158 million in in-force transactions, returned $111 million to shareholders and raised its dividend 5.4%. Management maintained targets for 8%–10% EPS growth, 13%–15% ROE and a 20%–30% payout ratio.

Reinsurance Group of America reported a record operating quarter in the second quarter of 2026, supported by investment income, recent new business, and modestly favorable claims experience across its global operations. President and CEO Tony Cheng said results were strong across regions and business lines, with contributions from both biometric underwriting and asset management. The company deployed capital in in-force transactions and organic flow business across the U.S., Asia Pacific, and Europe, the Middle East and Africa, while maintaining its return standards.

New CFO Laura Cockrill said RGA generated pretax adjusted operating income of $761 million, or $8.89 per share after tax. Its trailing-12-month adjusted operating return on equity was 18.4%, excluding accumulated other comprehensive income and notable items. Investment results were a major contributor. The yield on RGA’s core investment portfolio, excluding variable investment income, was 4.96% during the quarter. Its new-money rate increased to 6.02%, reflecting higher market yields and a greater allocation to investment-grade private assets. Annualized returns on variable investment income were 15% for the quarter and 11% year to date, above the company’s 7% planned return for 2026. Chief Investment Officer Jayson Bronchetti said the results were driven by realized gains and broad-based outperformance among alternative equity investments. RGA maintained its 7% variable investment income target for the remainder of the year but said strong results through the first half increased its confidence that it could meet or potentially exceed that level.

In the U.S. and Latin America, traditional business results benefited from favorable individual life claims experience and strong variable investment income. U.S. group claims were in line with the company’s updated expectations, while repricing actions were on track to produce solid results through 2026, Cockrill said. Financial Solutions results in the U.S. were favorable due to variable investment income, in-force actions, and longevity experience. Cockrill said the Equitable transaction remained on track with its expected financial results, with claims experience on the acquired block in line with expectations since the transaction closed. In Canada, traditional earnings met expectations and Financial Solutions benefited from strong variable investment income. EMEA traditional results were favorable due to one-time i...