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RGA Q4 Earnings and Revenues Beat Estimates, Premiums Up Y/Y
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Key Takeaways
RGA delivered Q4 2025 adjusted operating EPS of $7.75, beating consensus by 32.3% as revenues rose 23.4%.
RGA results were aided by investment income up 42.7%, a higher 5.2% yield, and favorable currency impacts.
RGA saw strength in Asia/Pacific, U.S. and Latin America, offset by softer EMEA results and a Corporate loss.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $7.75 per share, which beat the Zacks Consensus Estimate by 32.3%. The bottom line surged 55.3% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable impact of 11 cents per diluted share on net income available to RGA shareholders and 9 cents per diluted share on adjusted operating income.
RGA's operating revenues of $6.8 billion beat the Zacks Consensus Estimate by 10.9%. The top line also improved 23.4% year over year on higher net investment income, including variable investment income and other revenues.
Reinsurance Group delivered solid performance in the Asia/Pacific, U.S., Latin America, and Canada segments, which was partially offset by softer results in the Europe, Middle East, and Africa (“EMEA”) segment and unfavorable performance in the Corporate and Other segments. Results also benefited from in-force management actions and earnings diversification.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
Net premiums of $4.8 billion increased 15% year over year and beat the Zacks Consensus Estimates by 9.5%.
Investment income improved 42.7% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 13.6%. The average investment yield increased to 5.2% from 4.8% in the prior-year period due to higher variable investment income.
Total benefits and expenses increased 22.1% year over year to $6.1 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses and Interest credited.
Quarterly Segment Update
U.S. and Latin America: Total pre-tax adjusted operating income was $325 million, which increased 43.2% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $222 million, which increased 47% year over year. Net premiums increased 2.8% from the year-ago quarter to $2.1 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 35% to $103 million, which reflected the earnings contribution from the Equitable transaction.
Canada: Total pre-tax adjusted operating income rose 60% year over year to $64 million.
The Traditional segment delivered a 68.8% year-over-year increase in pre-tax adjusted operating income to $54 million. Net premiums grew 4.2% to $347 million, benefiting from a $1 million favorable impact from foreign currency exchange rates during the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 25% year over year to $10 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating income grew 31.8% to $141 million.
Pre-tax adjusted operating profit of the Traditional segment was $18 million, higher than the year-ago quarter’s profit of $11 million. Foreign currency exchange rates had a favorable effect of $1 million on adjusted operating income before taxes. Premiums increased 19.5% to $583 million. Foreign currency exchange rates had a favorable effect on net premiums of $26 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 28.1% year over year to $123 million. Foreign currency exchange rates had a favorable effect of $6 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income surged nearly 59.4% from the year-ago quarter’s level to $204 million.
The Traditional segment’s pre-tax adjusted operating income rose 85.7% year over year to $117 million, including a $1 million favorable impact from foreign currency exchange rates.
The Financial Solutions segment’s pre-tax adjusted operating income increased 33.9% to $87 million. Foreign currency exchange rates had an immaterial impact, while net premiums climbed 101.5% to $133 million.
Corporate and Other: Pre-tax adjusted operating loss totaled $58 million, reflecting an improvement from a loss of $71 million in the year-ago quarter. Results were unfavorable relative to the expected quarterly average run rate, primarily due to higher general expenses and increased financing costs.
Full-Year Highlights
Adjusted operating earnings were $22.72 per share, slightly exceeding the Zacks Consensus Estimate of $22.57. The figure increased 13.3% year over year.
Revenues totaled $23.9 billion in 2025, modestly above the consensus estimate of $23.6 billion.
Net premiums were $17.2 billion, representing a 3.4% decline from 2024.
Financial Update
As of Dec. 31, 2025, total assets were $156.6 billion, up 32% year over year.
Book value per share, excluding accumulated other comprehensive income, increased 8.8% year over year to $164.66.
Adjusted operating return on equity was 14.7%, representing a 90-basis-point year-over-year increase.
Capital Deployment
RGA deployed $2.5 billion into in-force block transactions, including $1.5 billion deployed into the transaction with subsidiaries of Equitable Holdings, Inc.
Reinsurance Group repurchased shares of $50 million in the quarter and $125 million of common shares in 2025. The company’s board of directors declared a quarterly dividend of 93 cents. Effective Feb. 3, 2026, the dividend will be paid out on March 3, 2026, to shareholders of record as of Feb. 17, 2026.
On Jan. 29, 2026, RGA’s board of directors approved a new share repurchase program authorizing the buyback of up to $500 million of its outstanding common stock. The authorization, which became effective immediately, replaces the company’s previous repurchase program approved in 2024.
Everest Group, Ltd. (EG - Free Report) reported a fourth-quarter 2025 operating income of $13.26 per share, which missed the Zacks Consensus Estimate by 0.8%. The bottom line improved from the year-ago loss of $18.39.
Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7% on strong performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.
Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $1.94 per share, which missed the Zacks Consensus Estimate by 8%. The bottom line increased 38.5% year over year. Adjusted operating revenues amounted to $2 billion, which increased 5.7% year over year.
The increase was due to higher earnings across all segments, partially offset by higher accruals in Corporate for performance-based compensation, reflecting strong results in 2025. The fourth-quarter 2025 earnings per share also benefited from reduced share count from share repurchases.
Arthur J. Gallagher & Co. (AJG - Free Report) reported fourth-quarter 2025 adjusted net earnings of $2.38 per share, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 11.7% on a year-over-year basis. Total revenues of $3.6 billion beat the Zacks Consensus Estimate by 0.3%. The top line also improved 33.8% year over year.
Arthur J. Gallagher’s total expenses increased 44.7% year over year to $3.4 billion in the reported quarter. Earnings before interest, tax, depreciation, and amortization and change in estimated acquisition earnout payables (EBITDAC) grew 3.3% from the prior-year quarter’s level to $710 million.
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RGA Q4 Earnings and Revenues Beat Estimates, Premiums Up Y/Y
Key Takeaways
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $7.75 per share, which beat the Zacks Consensus Estimate by 32.3%. The bottom line surged 55.3% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable impact of 11 cents per diluted share on net income available to RGA shareholders and 9 cents per diluted share on adjusted operating income.
RGA's operating revenues of $6.8 billion beat the Zacks Consensus Estimate by 10.9%. The top line also improved 23.4% year over year on higher net investment income, including variable investment income and other revenues.
Reinsurance Group delivered solid performance in the Asia/Pacific, U.S., Latin America, and Canada segments, which was partially offset by softer results in the Europe, Middle East, and Africa (“EMEA”) segment and unfavorable performance in the Corporate and Other segments. Results also benefited from in-force management actions and earnings diversification.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
Reinsurance Group of America, Incorporated price-consensus-eps-surprise-chart | Reinsurance Group of America, Incorporated Quote
Net premiums of $4.8 billion increased 15% year over year and beat the Zacks Consensus Estimates by 9.5%.
Investment income improved 42.7% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 13.6%. The average investment yield increased to 5.2% from 4.8% in the prior-year period due to higher variable investment income.
Total benefits and expenses increased 22.1% year over year to $6.1 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses and Interest credited.
Quarterly Segment Update
U.S. and Latin America: Total pre-tax adjusted operating income was $325 million, which increased 43.2% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $222 million, which increased 47% year over year. Net premiums increased 2.8% from the year-ago quarter to $2.1 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 35% to $103 million, which reflected the earnings contribution from the Equitable transaction.
Canada: Total pre-tax adjusted operating income rose 60% year over year to $64 million.
The Traditional segment delivered a 68.8% year-over-year increase in pre-tax adjusted operating income to $54 million. Net premiums grew 4.2% to $347 million, benefiting from a $1 million favorable impact from foreign currency exchange rates during the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 25% year over year to $10 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating income grew 31.8% to $141 million.
Pre-tax adjusted operating profit of the Traditional segment was $18 million, higher than the year-ago quarter’s profit of $11 million. Foreign currency exchange rates had a favorable effect of $1 million on adjusted operating income before taxes. Premiums increased 19.5% to $583 million. Foreign currency exchange rates had a favorable effect on net premiums of $26 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 28.1% year over year to $123 million. Foreign currency exchange rates had a favorable effect of $6 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income surged nearly 59.4% from the year-ago quarter’s level to $204 million.
The Traditional segment’s pre-tax adjusted operating income rose 85.7% year over year to $117 million, including a $1 million favorable impact from foreign currency exchange rates.
The Financial Solutions segment’s pre-tax adjusted operating income increased 33.9% to $87 million. Foreign currency exchange rates had an immaterial impact, while net premiums climbed 101.5% to $133 million.
Corporate and Other: Pre-tax adjusted operating loss totaled $58 million, reflecting an improvement from a loss of $71 million in the year-ago quarter. Results were unfavorable relative to the expected quarterly average run rate, primarily due to higher general expenses and increased financing costs.
Full-Year Highlights
Adjusted operating earnings were $22.72 per share, slightly exceeding the Zacks Consensus Estimate of $22.57. The figure increased 13.3% year over year.
Revenues totaled $23.9 billion in 2025, modestly above the consensus estimate of $23.6 billion.
Net premiums were $17.2 billion, representing a 3.4% decline from 2024.
Financial Update
As of Dec. 31, 2025, total assets were $156.6 billion, up 32% year over year.
Book value per share, excluding accumulated other comprehensive income, increased 8.8% year over year to $164.66.
Adjusted operating return on equity was 14.7%, representing a 90-basis-point year-over-year increase.
Capital Deployment
RGA deployed $2.5 billion into in-force block transactions, including $1.5 billion deployed into the transaction with subsidiaries of Equitable Holdings, Inc.
Reinsurance Group repurchased shares of $50 million in the quarter and $125 million of common shares in 2025.
The company’s board of directors declared a quarterly dividend of 93 cents. Effective Feb. 3, 2026, the dividend will be paid out on March 3, 2026, to shareholders of record as of Feb. 17, 2026.
On Jan. 29, 2026, RGA’s board of directors approved a new share repurchase program authorizing the buyback of up to $500 million of its outstanding common stock. The authorization, which became effective immediately, replaces the company’s previous repurchase program approved in 2024.
Zacks Rank
RGA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
Everest Group, Ltd. (EG - Free Report) reported a fourth-quarter 2025 operating income of $13.26 per share, which missed the Zacks Consensus Estimate by 0.8%. The bottom line improved from the year-ago loss of $18.39.
Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7% on strong performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.
Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $1.94 per share, which missed the Zacks Consensus Estimate by 8%. The bottom line increased 38.5% year over year. Adjusted operating revenues amounted to $2 billion, which increased 5.7% year over year.
The increase was due to higher earnings across all segments, partially offset by higher accruals in Corporate for performance-based compensation, reflecting strong results in 2025. The fourth-quarter 2025 earnings per share also benefited from reduced share count from share repurchases.
Arthur J. Gallagher & Co. (AJG - Free Report) reported fourth-quarter 2025 adjusted net earnings of $2.38 per share, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 11.7% on a year-over-year basis. Total revenues of $3.6 billion beat the Zacks Consensus Estimate by 0.3%. The top line also improved 33.8% year over year.
Arthur J. Gallagher’s total expenses increased 44.7% year over year to $3.4 billion in the reported quarter. Earnings before interest, tax, depreciation, and amortization and change in estimated acquisition earnout payables (EBITDAC) grew 3.3% from the prior-year quarter’s level to $710 million.