Reinsurance Group of America, Incorporated (RGA) Earnings

Management highlights

Good morning everyone, thanking for joining. We delivered a strong start to 2026 with excellent performance across regions and businesses. Disciplined execution, strong fundamentals, and diversified global platform. Asia Pacific had strong quarter with notable transactions in Japan. EMEA earnings exceeded expectations. U.S. had strong adjusted operating performance. Claims experience was favorable across regions. Profit emergence from recent business. Strategic optionality in global platform. Extended client relationships in North America, closed coinsurance transactions in Asia, completed exclusive transaction in EMEA. Deployed $50 million in share repurchases. Premium growth in traditional with good growth in EMEA and APAC, U.S. traditional premium growth up 1% over prior year. Strong momentum in strategic underwriting initiatives. Capital position strong with excess capital and deployable capital. Biometric claims experience favorable, with economic claims experience favorable by $117 million in the quarter, over half driven by U.S. individual life. Private credit strategy with allocation to private credit, diversified across issuers and asset categories. Book value per share increased with a compounded annual growth rate of 9.9% since 2021

Guidance

Confidence in 2026 and beyond outlook with strong fundamentals, healthy pipeline, durable competitive advantages. Disciplined execution of strategy to deliver intermediate-term financial targets and long-term value. Intend to deploy $400 million of excess capital to reduce financial leverage in 2026. Expect to remain opportunistic with share repurchases and anticipate total shareholder return of capital to range between 20% to 30% of after-tax operating earnings over the long term. Variable investment income return assumed at 7% for 2026, which is below longer term expectations of 10 to 12% due to a muted real estate sales environment

Segment performance

Asia Pacific had another strong quarter, driven by ongoing growth and strong execution with notable transactions in Japan. EMEA's earnings continue to reflect good new business with results exceeding expectations, supported by favorable overall experience and longevity momentum. In the U.S., adjusted operating performance was strong, supported by favorable claims experience and the contribution from recent new business, with individual life being robust and U.S. group results in line with 2026 expectations. The corporate and other segment reported an adjusted operating loss before tax of $65 million primarily due to the timing of certain compensation expenses and slightly unfavorable variable investment income. The U.S. and Latin America traditional results reflected favorable claims experience in individual life and good individual health results, with U.S. group results in line with expectations. Canada traditional results showed favorable individual life and group claims experience, while Canada financial solutions results were in line with expectations. EMEA traditional results had a timing benefit on an annual premium treaty partially offset by unfavorable claims experience in capped cohorts but had favorable economic claims experience, and EMEA's financial solutions results reflected the contribution from recent new business and favorable overall experience. The Asia-Pacific traditional segment had another good quarter with favorable overall experience and the benefit of ongoing growth. The U.S. financial solutions segment was in line with expectations, and the Canada financial solutions segment was also in line with expectations

Analyst Q&A

• Q: Regarding capital deployment, asked if there are enough opportunities to meet or exceed $1.5 billion.

  A: Axel responded that they are tracking in line with expectations, prioritizing quality over quantity, and will allocate capital towards the most compelling opportunities across the globe as well as returning capital to shareholders.

• Q: About the Equitable and Corbridge merger impacting the flow reinsurance agreement.

  A: Anthony said they don't expect any impacts from the news on the Inforce or the Flow transaction and remain very pleased with the transaction executed last year.

• Q: On mortality favorability in the U.S.

  A: Jonathan said Q1 claims experience was favorable due to lower frequency of claims, both large and non-large, and population excess mortality was modest.

• Q: On the excess capital negative impact from correction to subsidiary regulatory capital.

  A: Axel explained that the adjustment reflects a correction in one of the subsidiary regulatory capital calculations, annual experience and assumptions updates, and changes to subsidiary excess capital from finalizing year-end calculations and additions to the entities included.

• Q: On earnings seasonality in the post-LDTI world.

  A: Jonathan said assumptions reflect the seasonality incorporated into reserves, which levelizes the earnings impact.

• Q: On the $26 million benefit flipping to negative.

  A: Axel said it relates to an annual premium treaty where premium is recognized in the first quarter while claims come through the four quarters.

• Q: On new enforced block transactions.

  A: Axel said the pipeline is strong, diversified across the globe, and they focus on the sweet spot combining biometric and asset capabilities, being disciplined and willing to walk away from transactions not meeting risk-return trade-off.

• Q: On slower growth in U.S. traditional.

  A: Axel said 2025 strategic recaptures reduced ongoing premiums, making the year-over-year comparison challenging but they are pleased with the U.S. traditional business.

• Q: On potential sidecar for complex liabilities.

  A: Axel said current focus is on fully deploying Ruby RE, and it's too early to be specific on sidecar structures for complex liabilities.

• Q: On competition from European multiline reinsurers and U.S. primary insurers setting up internal reinsurance capitals.

  A: Tony said they focus on the sweet spot with biometric and asset risk, are uniquely positioned, and are optimistic about their momentum.

• Q: On in-force management actions.

  A: Axel said managing in-force business is core to their strategy, there were no notable actions in Q1, and they expect to remain active but timing and size are unpredictable.

• Q: On UK regulation around captive reinsurance.

  A: Jonathan said recent PRA info on counterparty charges, majority of UK longevity business is on a swap basis, and initial industry takeaways may favor strong counterparties like RGA.

• Q: On economic biometric experience.

  A: Axel said the $343 million economic claims experience not yet recognized will be recognized over a long time period, with the current annual impact to future earnings approximately $20 million.

• Q: On NAIC actuarial guideline 55.

  A: RGA said their standard business practice utilizes the U.S. entity as a reinsurer facing clients, exempt from AG55, and the additional requirements are an extension of existing practices with no material impact expected