Reinsurance Group of America, Incorporated (RGA) Earnings

Management highlights

- Overall Quarter Performance • RGA delivered a record operating quarter, with pre-tax adjusted operating income of $761 million ($8.89 after-tax per share), and a 12-month trailing adjusted operating return on equity of 18.4% (excluding AOCI and notable items). • Key performance drivers were strong investment results from higher new money yields and strong variable investment income, plus incremental earnings from new business written in prior years. - Strategic Priorities • Leverage combined core strengths: deep biometric risk expertise, proven asset management capabilities, global reach, leading life and health brand, and flexibility to partner across the industry. • Execute four focus areas: 1) Create win-win client transactions that deliver higher returns for RGA; 2) Meet rising global demand for risk and capital solutions leveraging RGA's strong balance sheet and trusted brand; 3) Optimize the balance sheet via in-force liability management, improved risk-adjusted returns, and diversified capital sources; 4) Maintain disciplined capital stewardship, balancing growth investment and shareholder returns. • Prioritize reducing exposure to U.S. capped cohorts to lower earnings volatility and improve overall business risk/return profile; U.S. capped exposure has fallen 25% since LDTI adoption three and a half years ago. - Operational and Capital Updates • U.S. strategic underwriting program volumes are on track to double year-over-year, with underwriting capabilities growing from a value-added service to a core driver of reinsurance business growth that often leads to larger in-force transactions. • New closed transactions this quarter included a Hong Kong flow coinsurance treaty for longevity-focused products (Asia), an asset-intensive transaction expanding continental European presence (EMEA), and expanded strategic underwriting client relationships (U.S.). • Year-to-date 2026, RGA has deployed $500 million into in-force transactions. This quarter, it returned $111 million to shareholders ($50 million in share repurchases, $61 million in dividends), and announced a 5.4% dividend increase payable in Q3 2026. • Ended the quarter with $2.2 billion in excess capital, maintained strong capital positions across all regulatory and rating agency frameworks, and plans to pay down $400 million in debt in September 2026. • Core portfolio yield (excluding VII) was 4.96%, with a 6.02% new money rate (up quarter-over-quarter on higher market yields and increased allocation to investment-grade private assets). Annualized alternative equity (BII) returns were 15% for the quarter and 11% year-to-date, well above the 7% 2026 full-year target.

Guidance

- Management maintains high confidence in meeting or exceeding intermediate-term financial targets: 8% to 10% annual EPS growth, 13% to 15% return on equity, and a 20% to 30% payout ratio for shareholder returns. - Strong year-to-date performance increases management confidence that full-year 2026 alternative equity returns will meet or exceed the 7% annual target, with no upward revision to the target issued at this time. - RGA will continue to opportunistically balance capital deployment for attractive new business opportunities with returning excess capital to shareholders via dividends and buybacks; if attractive market deployment opportunities are not available, the company will prioritize additional capital return to shareholders. - Reducing U.S. capped cohort exposure will continue as an ongoing priority over time, with natural runoff from aging business and incremental targeted management actions.

Segment performance

1. U.S. and Latin America: Traditional segment saw favorable individual life claims experience and strong variable investment income (VII); U.S. Group claims were in line with updated expectations and ongoing repricing work is on track for 2026. Financial solutions results were favorable driven by VII, in-force actions, and favorable longevity experience. 2. Canada: Traditional earnings were in line with expectations; financial solutions results were favorable driven by strong VII. 3. Europe, Middle East and Africa (EMEA): Traditional results were favorable driven by one-time items; financial solutions results were favorable driven by higher investment income. 4. Asia Pacific: Traditional segment delivered another healthy quarter driven by new business contribution; financial solutions saw favorable VII and strong new business contribution. 5. Corporate and other: Reported an adjusted pre-tax operating loss of $35 million, which was better than expectations due to strong VII and lower financing costs. Aggregate total traditional premiums grew 2.2% (0.9% constant currency), impacted by previously announced in-force management actions. Year-to-date total premiums excluding PRT grew 10.5% (9.3% constant currency).

Risks & headwinds

- Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from projected outcomes, with additional detail on risks available in RGA's periodic SEC filings. - Reducing exposure to capped cohorts is a priority specifically because these blocks increase earnings volatility, which negatively impacts overall business profile. - The impact of recent Hong Kong tax law changes on MCV business is still uncertain, and it is too early to assess what effect, if any, the changes will have on RGA's Asia Pacific business results.

Analyst Q&A

• Q: U.S. traditional premium growth has been modest due to in-force management actions, but strategic underwriting program volumes are on track to double. What is the outlook for U.S. traditional premium growth? /

  A: Underlying U.S. traditional growth is solid, with market share growth driven by underwriting initiative momentum. In-force management actions have reduced reported premium growth while also cutting capped cohort exposure by 25% and improving the business' earnings profile. Excluding non-recurring actions, year-to-date U.S. traditional and total traditional premiums grew 3%, and total U.S. premium excluding PRT grew approximately 8% this quarter and year-to-date, which is a better indicator of underlying growth. (348 characters)

• Q: Favorable mortality experience has been seen across the industry. How does RGA view current and future mortality trends? /

  A: RGA's favorable quarterly and year-to-date mortality results align with broader favorable industry and population trends, and reflect the company's biometric and risk selection expertise. U.S. individual mortality was in line with expectations this quarter overall and for large claims, with capped cohorts modestly favorable and uncapped cohorts in line. There were no notable trends across age or issue year cohorts, and year-to-date U.S. individual claims have been $70 million favorable, consistent with industry observations. (381 characters)

• Q: Year-to-date capital deployment is $500 million, against a prior annual target of $1.5 billion. Is that target still appropriate, and what is the pipeline outlook? /

  A: Transaction timing varies quarter to quarter, but the pipeline remains healthy, high quality, and diversified across regions, and year-to-date returns have met or exceeded return targets. Management remains confident in hitting intermediate-term EPS, ROE, and payout targets, with multiple levers (including in-force deployment, organic growth, investment returns, in-force management) to support growth targets. Capital stewardship is a core priority, and if attractive deployment opportunities are not available, the company will return more capital to shareholders. (378 characters)

• Q: Hong Kong's new tax law may impact MCV business. What share of APAC revenue comes from Hong Kong/MCV, and what impact do you expect? /

  A: RGA does not disclose country-level segment breakdowns for Asia Pacific, but notes that Hong Kong is an important market within the region, which is core to RGA's global business. It is too early to assess the impact of the new tax law, and RGA's Hong Kong business is heavily protection-focused with lower reliance on investment income than many peer products. RGA will continue to monitor developments as the policy evolves. (312 characters)

• Q: Alternative equity returned 15% annualized in Q2 and 11% year-to-date, well above the 7% target. What is your outlook for the full year? /

  A: Strong year-to-date broad-based alternative returns have increased management confidence that full-year 2026 returns will meet or exceed the 7% target, but management is not revising the full-year target at this time. It is still too early to forecast 2027 alternative returns, and updates will be provided if expectations change. (253 characters)