Reinsurance Group of America, Incorporated RGA reported first-quarter 2025 adjusted operating earnings of $5.66 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line decreased 6% from the year-ago quarter’s figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Net foreign currency fluctuations had a favorable effect of 9 cents per share on adjusted operating income. 

RGA's operating revenues of $5.3 billion missed the Zacks Consensus Estimate by 7%. The top line declined 13.7% year over year due to higher net premiums and net investment income. Net premiums of $4 billion rose 23.9% year over year. 

Investment income increased 13% from the prior-year quarter to $1.2 billion on higher average invested assets. Average investment yield decreased to 4.64% from 4.7% in the year-ago period, reflecting lower variable investment income and lower yield on cash and cash equivalents, partially offset by higher new money rates.

Total benefits and expenses at Reinsurance Group decreased 19% year over year to $4.9 billion on lower claims and other policy benefits.

Quarterly Segment Update

U.S. and Latin America: Total pre-tax adjusted operating income was $207 million in the quarter under discussion, which increased 5% year over year. 

The Traditional segment reported a pre-tax adjusted operating income of $140 million, which increased 9.4% year over year, reflecting favorable Individual Life large claims experience. Net premiums rose 12% from the year-ago quarter to $1.9 billion.

 The Financial Solutions segment’s pre-tax adjusted operating income of $67 million decreased 25.6% year over year on lower variable investment income.

Canada: Total pre-tax adjusted operating income decreased 18.9% year over year to $43 million. 

The Traditional segment’s pre-tax adjusted operating income surged 60% year over year to $32 million, reflecting unfavorable lapse experience, partially offset by favorable claims experience. Net premiums marginally increased to $319 million. Foreign currency exchange rates had an adverse effect on net premiums of $20 million in the quarter. 

The Financial Solutions segment’s pre-tax adjusted operating income increased 57.1% year over year to $11 million, reflecting favorable longevity experience. Foreign currency exchange rates had an adverse effect of $1 million on pre-tax adjusted operating income.

EMEA: Total pre-tax adjusted operating income was $140 million, down 65.2% year over year. 

Pre-tax adjusted operating loss of the Traditional segment was $50 million, up 31.6% year over year on a timing benefit on an annual premium treaty and favorable claims experience. Premiums increased 8.9% to $540 million in the quarter. Foreign currency exchange rates had a favorable effect on net premiums of $3 million in the quarter. 

Financial Solutions' pre-tax adjusted operating income increased 16.9% year over year to $90 million and reflected favorable overall experience

Asia/Pacific: Total pre-tax adjusted operating income was $165 million, which decreased 1.8% from the year-ago quarter.

The Traditional segment’s pre-tax adjusted operating income was $106 million, which decreased 2.7% from the year-ago quarter. Foreign currency exchange rates had a favorable effect of $23 million on pre-tax adjusted operating income. Premiums increased 8.5% to $777 million in the quarter. 

The Financial Solutions segment’s pre-tax adjusted operating income was flat year over year at $66 million.  Foreign currency exchange rates had a favorable effect of $1 million on pre-tax adjusted operating income. Premiums increased 143% to $112 million in the quarter.

Corporate and Other: Pre-tax adjusted operating loss was $70 million, wider than the year-ago quarter’s loss of $38 million. The higher loss was primarily due to lower variable investment income.

Financial Update

As of March 31, 2025, the company had assets worth $128.2 billion, up 8% from 2024 end.   

As of March 31, 2025, Reinsurance Group’s book value per share, excluding accumulated other comprehensive income, increased 1.6% from 2024 end to $153.80.

The adjusted operating return on equity (excluding accumulated other comprehensive income) was 13.4%, which contracted 140 basis points year over year. 

RGA estimates adjusted operating ROE to be 13% to 15%, reflecting the expectation of continued strong fundamentals of its business in the foreseeable future.

Capital Deployment

RGA deployed capital of $418 million into in-force block transactions in the first quarter. 

The board of directors declared a quarterly dividend of 89 cents. The dividend will be paid out on May 27 to shareholders of record as of May 13.

Zacks Rank

RGA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

MGIC Investment Corporation MTG reported first-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 13.6%. Moreover, the bottom line increased 15.4% year over year. Total operating revenues of $305 million increased 0.7% year over year due to higher net investment income and net premiums earned. The top line however missed the consensus mark by 1.5%.

Insurance in force increased 1% from the prior-year quarter to $293.8 billion. The Zacks Consensus Estimate was $297 billion. Our estimate was $296.8 billion. Persistency — the percentage of insurance remaining in force from one year prior — was 84.7% as of March 31, 2025, down from 85.7% in the year-ago quarter. Net premiums written increased 0.7% year over year to $235 million. The figure was lower than our estimate of $238.4 million.

Radian Group RDN reported first-quarter 2025 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line decreased 3.9% year over year. Operating revenues remained flat year over year at $306 million.  It missed the Zacks Consensus Estimate by 6.4%. 

MI New insurance written decreased 17.7% year over year to $9.5 billion. Net premiums earned were $234 million, flat year over year. Persistency was 83.7% as of March 31, 2025, contracting 60 basis points year over year.

Prudential Financial, Inc. PRU reported first-quarter 2025 adjusted operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 2.5%. The bottom line rose 7.8% year over year. Total revenues of $13.4 billion declined 38% year over year and missed the Zacks Consensus Estimate by 7.7%. The decrease in revenues was due to lower premiums. 

Total benefits and expenses amounted to $18.9 billion, which declined 41% year over year in the first quarter. This decrease was due to lower insurance and annuity benefits, interest expense and operating expenses. The figure was higher than our estimate of $13 billion.

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