Reinsurance Group of America boosts net income on life experience
The company reported net income available to shareholders of $462 million for the second quarter.
Reinsurance Group of America (RGA) reported a significant increase in second-quarter net income available to shareholders, which rose to $462 million, or $7.01 a share.
The results were driven by a sharp recovery in traditional life and group experience within the Americas, alongside contributions from a prior-year transaction with Equitable Holdings.
Adjusted operating income for the quarter reached $586 million, or $8.89 a share, up from $315 million, or $4.72 a share, in the second quarter of 2024. Consolidated net premiums rose 7.7% year-over-year to $4.5 billion, though the figure declined sequentially from $4.6 billion in the first quarter.
In the U.S. and Latin America segment, traditional adjusted operating income rose to $165 million from $4 million in the prior-year quarter. Financial solutions adjusted operating income in the same region increased to $154 million from $97 million, due to strong variable investment income and the 2024 Equitable Holdings transaction.
Growth extended to the Asia Pacific region, where traditional adjusted operating income rose to $129 million from $104 million a year earlier. Asia Pacific financial solutions adjusted operating income increased to $120 million from $77 million in the prior-year quarter.
Investment performance remained a contributor as the average investment yield rose to 5.33% from 5.31% in the second quarter of 2024 and 4.93% in the first quarter of 2025. Investment income, excluding spread-based businesses, grew 10.3% year-over-year, a deceleration from the 19.3% growth reported in the previous quarter.
Trailing twelve month adjusted operating ROE was 17.4% as of the second quarter, compared with 15.2% as of the first quarter. The effective tax rate on pre-tax income for the quarter was 23.4%, down from 24.9% in the first quarter.
The Board declared a regular quarterly dividend of $0.98, representing a 5.4% increase over the prior dividend.