Reinsurance Group of America, Incorporated Q2 FY26 Earnings Analysis

- Continued strong momentum in new business pipeline; high quality and globally diversified opportunities (Page 7). - Growth driven by strategic underwriting initiatives and product innovation across regions, especially in Asia, U.K., and U.S. (Page 7). - Focus on transactions combining biometric and asset capabilities, targeting attractive risk-return profiles (Page 7). - Positive outlook on U.S. traditional business with ongoing improvement in risk profile and underwriting (Page 8). - Maintained optimism about business momentum and disciplined positioning in reinsurance markets despite competition (Page 9). - Capital deployed selectively, with strategic optionality across global markets to pursue best risk-adjusted opportunities (Pages 5, 9). - Expectation to remain active on in-force management but with limited near-term financial impact (Page 10).

- The current annual impact of the economic claims experience not yet recognized is approximately $20 million, which is baked into future earnings expectations. (Page 11) - RGA remains confident in achieving its intermediate-term financial targets, supported by strong fundamentals, healthy new business momentum, and solid investment performance. (Pages 4, 3, 2) - The company expects earnings seasonality to be more leveled post-LDTI due to seasonality assumptions incorporated into reserves. (Page 6) - Capital deployment is disciplined and strategically focused to fund growth and return capital to shareholders, intending total shareholder return of 20%-30% of after-tax operating earnings long term. (Page 4, 5) - No material impact expected from regulatory changes; business model resilient across regimes. (Page 11) - EPS run rate for Q1 estimated at approximately $6.70 per share, with a 7% variable investment income return assumption for 2026, below the longer-term 10%-12% expectation. (Page 3)

- Continued focus on capital deployment into in-force transactions, with $338 million deployed in the recent quarter. - Ongoing efforts to fully deploy Ruby Re sidecar capital expected within the year. - Considering potential launch of a new sidecar vehicle for complex liabilities like long-term care and universal life with secondary guarantees, though it is too early for specifics as focus remains on Ruby Re. - Strategic recaptures in 2025 reduced lower-quality, less profitable blocks, enhancing overall risk profile. - Capital management strategy includes selective deployment to fund growth, generate fee income, and return capital to shareholders via dividends and share repurchases. - Estimated excess capital of $2.4 billion and next 12 months deployable capital of $2.9 billion, with plans to allocate $400 million to reduce financial leverage in 2026. - Ongoing disciplined capital allocation focused on transactions meeting return thresholds and risk frameworks.

- No specific mention of new fundraising through debt or equity in the current quarter. - Capital deployment is focused on in-force transactions and returning capital to shareholders via dividends and share buybacks. - The company has an estimated $2.4 billion in excess capital and $2.9 billion in deployable capital over the next 12 months, indicating strong capital availability. - They plan to allocate $400 million of excess capital to reducing financial leverage during 2026. - Third-party capital (e.g., sidecars like Ruby Re) remains a core element of capital management, but completion of current fundraising efforts is ongoing, with Ruby Re capital deployment expected this year. - Overall, RGA is prioritizing disciplined capital deployment over raising new debt or equity at this time.

- The pipeline remains strong, high quality, and well diversified globally. - Asia shows strength in product development, middle-class market, and Financial Solutions amidst new capital frameworks in Japan and Korea. - The U.K. longevity business maintains strong momentum, driven by a robust team. - In the U.S., momentum benefits from strategic repositioning around biometric and underwriting strength and industry realignment. - The focus remains on the "sweet spot" combining biometric and asset capabilities. - RGA maintains discipline, willing to walk away from deals that don't meet risk-return trade-offs. - Current capital deployment priorities include fully deploying Ruby Re this year. - No notable in-force management actions during Q1, but the company expects to remain active, though timing/size are unpredictable.