Q3 2025 Reinsurance Group of America Inc Earnings Call

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Good morning, and welcome to the Reinsurance Group of America’s third quarter 2025 earnings conference call.

Please note this event is being recorded.

I'd now like to turn the conference over to Jeff Hopson Senior Vice President Investor Relations. Please go ahead.

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Welcome to Rga's third quarter 2025 conference call I'm joined on the call. This morning by Tony Chang Rga's, President and CEO XO Andre Chief Financial Officer, Leslie Barbie, Chief Investment Officer, and Jonathan Porter, Chief Risk Officer, a quick reminder, before we get going regarding forward looking.

After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then 1 on your telephone keypad to withdraw your question. Please press star then 2

Please note this event is being recorded.

I would now like to turn the conference over to Jeff Hobson, Senior Vice President of Investor Relations. Please go ahead.

Looking information and non-GAAP financial measures some of our comments or answers may contain forward looking statements actual results could differ materially from expected results. Please refer to the earnings release, we issued yesterday for a list of important factors that could cause actual results to differ from expected results.

Jeff Hopson: A quick reminder before we get going regarding forward-looking information and non-GAAP financial measures. Some of our comments or answers may contain forward-looking statements. Actual results could differ materially from expected results. Please refer to the earnings release we issued yesterday for a list of important factors that could cause actual results to differ from expected results. Additionally, during the course of this call, the information we provide may include non-GAAP financial measures. Please see our earnings release, earnings presentation, and quarterly financial supplement, all of which are posted on our website for a discussion of these terms and reconciliations to GAAP measures. Throughout the call, we will be referencing slides from the earnings presentation, which again is posted on our website. I will turn the call over to Tony for his comments. Good morning, everyone, and thank you for joining us.

Additionally, during the course of this call. The information we provide may include non-GAAP financial measures. Please see our earnings release earnings presentation, and quarterly financial supplement all of which are posted on our website for a discussion of.

Arms and reconciliation to GAAP measures throughout the call we will be referencing the slides from the earnings presentation, which again is posted on our website and now I'll turn the call over to Tony for his comments.

Good morning, everyone and thank you for joining us.

Thank you. Welcome to rga's third quarter 2025 conference call. I'm joined on the call this morning by Tony Chang rga's president and CEO axle Andre Chief Financial Officer. Leslie Barbie Chief investment officer and Jonathan Porter. Chief risk officer, a quick reminder before we get going regarding forward-looking information and non-gaap financial measures some of our comments or answers may contain forward-looking statements, actual results. Could differ materially from expected results, please refer to the earnings release, we issued yesterday for a list of important factors that could cause actual results to differ from expected results. Additionally, during the course of this, call, the information, we provide may include non-gaap Financial measures. Please see our earnings, release earnings presentation, and quarterly Financial supplements.

I am delighted to share that we have had a very strong third quarter as demonstrated by the continued successful execution of our strategy.

As well as the record financial performance we delivered.

Let me open with a few key highlights.

All of which are posted on our website for a discussion of these terms and reconciliations to gaap measures throughout the call, we will be referencing slides from the earnings presentation, which again, is posted on our website. And now I'll turn the call over to Tony for his comments.

Firstly, we reported record operating EPS, excluding notable items of $6 37.

Jeff Hopson: I am delighted to share that we have had a very strong Q3, as demonstrated by the continued successful execution of our strategy, as well as the record financial performance we delivered. Let me open with a few key highlights. Firstly, we reported record operating EPS, excluding notable items, of $6.37 per share. These results were strong and above expectations. We had excellent performance overall, with particularly good results in Asia Traditional and AMEA and U.S. Financial Solutions. Our diversified global platform continues to deliver significant long-term value. Secondly, we are seeing a positive contribution from the Equitable transaction, which closed this quarter. Thirdly, new business momentum remains strong. As evidenced by our premium growth and capital deployment into in-force transactions, we are seeing good year-to-date contributions from across our geographies.

Good morning everyone and thank you for joining us.

Sure.

These results were strong and above expectations.

We had excellent performance overall with particularly good results in Asia, traditional and EMEA and U S financial solutions.

I am delighted to share that. We have had a very strong third quarter as demonstrated by the continued successful execution of our strategy as well as the record financial performance. We delivered

Let me open with a few key highlights.

Our diversified global platform continues to deliver significant long term value.

Firstly, we reported record operating, EPS excluding notable items of $6.37 per share.

Secondly, we are seeing a positive contribution from the equitable transaction, which closed this quarter.

These results were strong and above expectations.

Thirdly, new business momentum remains strong.

We had excellent performance overall with particularly good results in Asia, traditional and Amia and US Financial Solutions.

As evidenced by our premium growth and capital deployment into enforced transactions.

Our Diversified Global platform continues to deliver significant long-term value.

We are seeing good year to date contributions from across our geographies.

Our competitive advantages continue to differentiate RJ, leading to good new business results.

Secondly, we are seeing a positive contribution from the Equitable transaction, which closed this quarter.

Thirdly new business momentum. Remains strong

Robust pipeline and the ability to be selective on the opportunities we pursue.

As evidenced by our premium growth and capital deployment into enforced transactions.

Next during the quarter, we repurchased $75 million of common shares.

Jeff Hopson: Our competitive advantages continue to differentiate RGA, leading to good new business results, a robust pipeline, and the ability to be selective on the opportunities we pursue. Next, during the quarter, we repurchased $75 million of common shares. We will continue to balance investing our excess capital into the business and returning it to shareholders in a manner that allows us to execute our strategy and meet our financial targets over time. Finally, we continue to make progress on other strategic initiatives, including the utilization of Ruby Re and the successful execution of in-force management actions. All of these position us for continued long-term success. Let me now provide a few more details on the quarter, including highlights from across our regions, starting with North America. We continue to exceed our new business targets for the traditional business, driven by our strong underwriting capabilities.

We are seeing good year-to-date contributions from across our geographies.

We will continue to balance investing our excess capital into the business and returning it to shareholders in a manner that allows us to execute our strategy and meet our financial targets over time.

Our competitive advantages continue to differentiate RJ leading to good new business results, a robust Pipeline and the ability to be selective on the opportunities, we pursued.

Finally, we continue to make progress on other strategic initiatives, including the utilization of Ruby right and the successful execution of enforce management actions.

Next, during the quarter, we repurchased 75 million common shares.

All of these position us for continued long term success.

We will continue to balance investing our excess Capital into the business and returning it to shareholders in a manner that allows us to execute our strategy and meet our financial targets over time.

Let me now provide a few more details on the quarter, including highlights from across our regions starting with North America.

We continue to exceed our new business targets for the traditional business driven by our strong underwriting capabilities.

Finally we continue to make progress on other strategic initiatives, including the utilization of Ruby reef and the successful execution of enforce management actions.

We closed a significant number of new deals in the quarter and reached a record number of underwriting applications.

All of these position us for continued long-term success.

Let me now provide a few more details on the quarter including highlights from across our regions.

One of these deals was an enhancement of our strategic underwriting program with a digital solution that enabled us to partner exclusively with a key client that has a strong brand and a large distribution footprint.

Starting with North America.

Jeff Hopson: We closed a significant number of new deals in the quarter and reached a record number of underwriting applications. One of these deals was an enhancement of our strategic underwriting program with a digital solution that enabled us to partner exclusively with a key client that has a strong brand and a large distribution footprint. These initiatives differentiate RGA and represent an increasing portion of our U.S. business. This is yet another example of what RGA has done for over 50 years and continues to do its best, which is to be innovative and the leader in underwriting. Also, as indicated, the Equitable transaction closed in the quarter, and we recorded a full quarter of earnings in this period. Results were in line with our expectations. The asset portfolio repositioning is progressing as planned, and our previous guidance on the expected future earnings remains unchanged.

We continue to exceed our new business targets for the traditional business, driven by our strong underwriting capabilities.

These initiatives differentiate RJ and represent an increasing portion of our U S business.

We closed a significant number of new deals in the quarter and reached a record number of underwriting applications.

This is yet. Another example of what <unk> has done for over 50 years and continues to do its best which is to be innovative and the leader in underwriting.

One of these deals was an enhancement of our strategic underwriting program with a digital solution that enabled us to partner exclusively with a key client that has a strong brand and a large distribution footprint.

Also as indicated the equitable transaction closed in the quarter and we recorded a full quarter of earnings in this period.

These initiatives differentiate RJ and represent an increasing portion of our us business.

Results were in line with our expectations.

The asset portfolio repositioning is progressing as planned and our previous guidance on the expected future earnings remains unchanged.

Which is to be Innovative and the leader in underwriting.

Along with the financial gains.

Partnership is yielding strategic benefits through increased underwriting services product development asset management and participation in our Ruby re sidecar.

Also, as indicated, the Equitable transaction closed in the quarter and we recorded a full quarter of earnings in this period.

Results were in line with our expectations.

The depth and breadth of this partnership is one example of the win win opportunities for the benefit of both <unk> and our clients.

Jeff Hopson: Along with the financial gains, the partnership is yielding strategic benefits through increased underwriting services, product development, asset management, and participation in our Ruby Re sidecar. The depth and breadth of this partnership is one example of the win-win opportunities for the benefit of both RGA and our clients. Moving to Asia Pacific, the region continues to perform very well. Traditional results were particularly strong this quarter, continuing its trend of excellent growth and bottom-line results. We continue to delight our clients by staying at the forefront of innovation and helping them navigate evolving strategic needs. Our strategy in Hong Kong is to deliver holistic solutions, combining product development, capital solutions, and technology-enabled underwriting capabilities. We recently won the prestigious Hong Kong Federation of Insurers Outstanding Reinsurance Scheme Award, recognizing one of these holistic solutions. We expect this to lead to repeat transactions of this nature in Hong Kong.

The asset portfolio repositioning is progressing as planned, and our previous guidance on the expected future earnings remains unchanged.

Moving to Asia Pacific.

The region continues to perform very well.

Traditional results were particularly strong this quarter continuing its trend of excellent growth and bottom line results.

Along with the financial gains, the partnership is yielding strategic benefits through increased underwriting Services product development, asset management and participation in our Ruby re Sidecar.

We continue to delight, our clients by staying at the forefront of innovation and helping them navigate evolving strategic needs.

The depth and breadth of this partnership is one. An example of the win-win opportunities for the benefit of both RGA and our clients.

Moving to asia-pacific.

Our strategy in Hong Kong is to deliver holistic solutions combining.

The region continues to perform very well.

<unk> product development capital solutions and technology enabled underwriting capabilities.

Traditional results were particularly strong in this quarter continuing its trend of excellent growth and bottom line results.

We recently won the prestigious Hong Kong Federation of insurers outstanding Reinsurance Scheme Award.

We continue to Delight our clients by staying at the Forefront of innovation and helping them navigate evolving strategic needs.

Recognizing one of these holistic solutions.

Our strategy in Hong Kong is to deliver Holistic Solutions.

We expect this to lead to repeat transactions of this nature in Hong Kong.

In addition, we've been able to leverage these strengths across the region.

Combining product development, Capital Solutions, and Technology enabled underwriting capabilities.

This was best demonstrated in mainland China, where recent regulatory changes allow participating critical illness products like the one in one in Hong Kong to be sold.

We recently won the prestigious Hong Kong Federation of insurers outstanding. Reinsurance scheme, award recognizing, 1 of these Holistic Solutions.

Jeff Hopson: In addition, we've been able to leverage these strengths across the region. This was best demonstrated in mainland China, where recent regulatory changes allow participating critical illness products, like the ones in Hong Kong, to be sold. RGA co-developed a first-of-its-kind critical illness combination product, and early sales performance has been strong. In Korea, RGA remains the market leader in product innovation. Building on the success of last year's cancer treatment product, which launched with 19 clients, we introduced the second-generation version of this product, and our clients have already sold over 1 million policies, demonstrating the strong market demand. Finally, in the AMEA region, RGA remains a clear market leader, and Q3 results reflect that. We successfully closed multiple transactions across the region and across a range of product lines. The strong client satisfaction from RGA executing on our promises will lead to repeat opportunities.

Hi, J code developed a first of its kind critical illness combination product.

We expect this to lead to repeat transactions of this nature in Hong Kong.

And early sales performance has been strong.

In addition, we've been able to leverage these strengths across the region.

In Korea, RGA remains the market leader in product innovation.

Building on the success of last year's cancer treatment product, which launched with 19 clients.

This was best demonstrated in mainland China, where recent regulatory changes allow participating critical illness products, like the 1-in-ones in Hong Kong, to be sold.

We introduced the second generation version of this product and our clients have already sold over 1 million policies, demonstrating the strong market demand.

RJ code developed. A first of its kind critical illness combination product.

An early sales performance has been strong.

In Korea.

RGA remains the market leader in product innovation.

Finally in the EMEA region.

<unk> remains a clear market leader and Q3 results reflect that.

Building on the success of last year's cancer, treatment product, which launched with 19 clients.

We successfully successfully closed multiple transactions across the region and across a range of product lines.

We introduced the second-generation version of this product.

The strong client satisfaction from RJ executing on our promises will lead to repeat opportunities.

And our clients have already sold over 1 million policies, demonstrating the strong market demand.

Finally, in the Amia region.

RGA remains a clear market leader.

In addition, we closed our market first transaction in Switzerland.

And Q3 results. Reflect that.

This follows our success in Belgium last year in a similar market for us and shows Continental Europe is opening up two asset intensive reinsurance.

We successfully successfully closed, multiple transactions across the region and across a range of product lines.

I firmly believe we are best positioned in this market and our innovation will continue to drive growth in the region.

Jeff Hopson: In addition, we closed a market-first transaction in Switzerland. This follows our success in Belgium last year in a similar market-first and shows continental Europe is opening up to asset-intensive reinsurance. I firmly believe we are best positioned in this market, and our innovation will continue to drive growth in the region. Reflecting on the activity from across the globe, I am very pleased with our traditional business results. Traditional business premiums are up 8.5% year-to-date on a constant currency basis, with good growth across regions, and we can rely on this business year in, year out, giving us a strong foundation for continued earnings growth. Now, with regards to transactions, we have deployed $2.4 billion of capital year-to-date. This comprised $1.5 billion into the Equitable transaction. $900 million of capital into over 20 other transactions spread around the globe.

The strong client satisfaction from RGA. Executing on our promises will lead to repeat opportunities.

Reflecting on the activity from across the Globe I am very pleased with our traditional business results.

Traditional business premiums are up eight 5% year to date on a constant currency basis.

In addition, we closed a market first transaction in Switzerland. This follows our success in Belgium last year in a similar Market first and shows Continental, Europe is opening up to asset intensive reinsurance.

With good growth across regions.

I firmly believe we are best positioned in this market and our Innovation will continue to drive growth in the region.

And we can rely on this business year in year out, giving us a strong foundation for continued earnings growth.

Reflecting on the activity from across the globe, I am very pleased with our traditional business results.

Now with regards to transactions, we have deployed $2 $4 billion of capital year to date.

Traditional business premiums are up 8.5% year to date on a constant currency basis.

This comprised of $1 5 billion into the equitable transaction.

With good growth across regions.

And $900 million of capital into over 20, other transactions spread around the globe.

And we can rely on this business year in and year out, giving us a strong foundation for continued earnings growth.

These are high quality transactions that don't always make headlines due to them more modest size.

Now, with regards to transactions, we have deployed $2.4 billion of capital year-to-date.

But equally important as they form a regular base of business that we can also rely on year in year out.

This comprised of $1.5 billion into the Equitable transaction.

They leverage our long standing client relationships, our strength and biometric risks.

And 900 million of capital into over 20 other transactions.

Jeff Hopson: These are high-quality transactions that don't always make headlines due to their more modest size, but are equally important as they form a regular base of business that we can also rely on year in, year out. They leverage our long-standing client relationships, our strength in biometric risk, and often our repeat transactions that are well within our sweet spot. As you can see from these examples, the new business success in all three regions is the result of our now well-entrenched creationary business approach. This approach proactively provides holistic and innovative solutions, leveraging our competitive advantages, and often leads to exclusive and repeat business. Over the past two years, this approach has driven expected lifetime returns of all new business across the company above our target range.

Spread around the globe.

And often a repeat transactions that are well within our sweet spot.

These are high-quality transactions that don't always make headlines due to their more modest size.

As you can see from these examples the new business success in all three regions are the result of our now well entrenched creation Ray business approach.

But they are equally important, as they form a regular base of business that we can also rely on year in and year out.

This approach proactively provides a holistic and innovative solutions.

They leverage our long-standing client relationships. Our strength in biometric risk.

Leveraging our competitive advantages and often leads to exclusive and repeat business.

And often, there are repeat transactions that are well within our sweet spot.

Over the past two years. This approach has driven expected lifetime returns of all new business across the company above our target range.

Three regions are the result of our now well-entrenched Creationary business approach.

This approach proactively provides holistic and innovative solutions.

Looking forward, our new business pipeline is strong across all three regions and we will continue to select the best opportunities based on our expected returns risk appetite and other strategic considerations.

leveraging, our competitive advantages and often leads to exclusive and repeat business,

Another highlight is that the value of in force business margins increased by 16% over the past three quarters.

Jeff Hopson: Looking forward, our new business pipeline is strong across all three regions, and we will continue to select the best opportunities based on our expected returns, risk appetite, and other strategic considerations. Another highlight is that the value of in-force business margins increased by 16% over the past three quarters. This is a measure of our efforts to create long-term value through new business and other management actions and indicates our success in building a sustainable and successful future. It is very gratifying that we can provide an attractive combination of organic growth and are in a strong capital position that enables us to fulfill our healthy pipeline and return a meaningful amount of capital to shareholders. To sum up, we have had an excellent Q3 with many highlights.

Over the past 2 years, this approach has driven expected lifetime returns of all new business across the company about our target range.

This is a measure of our efforts to create long term value through new business and other management actions and indicates our success in building a sustainable and successful future.

Looking forward, our new business pipeline is strong across all 3 regions and we will continue to select the best opportunities based on our expected returns risk, appetite and other strategic considerations.

Yeah.

Finally, it is very gratifying that.

Now we can provide an attractive combination of organic growth.

Another highlight is that the value of enforced, business margins increased by 16% over the past 3 quarters.

And are in a strong capital position that enables us to fulfill our healthy pipeline.

And return a meaningful amount of capital to shareholders.

This is a measure of our efforts to create long-term value through new business and other management actions and indicates our success in building a, sustainable and successful future.

So to sum up we have had an excellent third quarter.

Finally, it is very gratifying.

With many highlights.

That we can provide an attractive combination of organic growth.

We are well positioned in the right markets with the right teams executing with the right strategies and have full confidence that the best is yet to come.

And we are in a strong capital position that enables us to fulfill our healthy pipeline and return a meaningful amount of capital to shareholders.

I will now turn it over to our CFO ex Andre to discuss the financial results in more detail.

to, so, to sum up,

We have had an excellent third quarter.

Jeff Hopson: We are well-positioned in the right markets with the right teams, executing with the right strategies, and have full confidence that the best is yet to come. I will now turn it over to our CFO, Axel André, to discuss the financial results in more detail. Thanks, Tony. Reinsurance Group of America reported pre-tax adjusted operating income, excluding notable items, of $534 million for the quarter, or $6.37 per share after tax. For the trailing 12 months, adjusted operating return on equity, excluding notable items, was 14.2%. Results were strong this quarter and above expectations. Momentum across our business remains good, and we saw notable strength in Asia Traditional and AMEA and U.S. Financial Solutions. As Tony mentioned earlier, we closed the Equitable transaction and recognized a full quarter of income. Results for the block continue to be in line with expectations.

Thanks, Tony.

With many highlights.

<unk> reported pretax adjusted operating income excluding notable items of $534 million for the quarter or $6 37 per share after tax.

We are well positioned in the right markets with the right teams executing with the right strategies and have full confidence that The Best Is Yet To Come.

For the trailing 12 months adjusted operating return on equity excluding notable items was 14, 2%.

I will now turn it over to our CFO axle, Andre to discuss the financial results in more detail.

Thanks Tony.

<unk> were strong this quarter and above expectations momentum across all business remains good and we saw notable strength in Asia, traditional and EMEA and U S financial solutions.

OG reported pre-tax adjusted, operating income excluding renewable, items of 534 million for the quarter or $6.37 per share after tax.

As Tony mentioned earlier, we closed the equitable transaction and recognized a full quarter of income.

For the trading in 12 months, adjusted operating return on Equity excluding notable items was 14.42%.

Results for the block continue to be in line with expectations. As a reminder, this block is expected to have a highly diversified sources of earnings split roughly between fee income underwriting margin and investment spread.

Results were strong this quarter and above expectations.

Momentum across all business remains good, and we saw notable strengths in Asia, traditional, and EMIA in U.S. Financial Solutions.

This is one of the reasons the transaction was so attractive to us given the diversified sources of earnings. This is immediate earnings impact as well as incremental ramp up of some of the assets are repositioned.

Aston mentioned earlier, we closed the Equitable transaction and recognized a full quarter of income.

Jeff Hopson: As a reminder, this block is expected to have highly diversified sources of earnings, split roughly between fee income, underwriting margin, and investment spread. This is one of the reasons the transaction was so attractive to us. Given the diversified sources of earnings, this is immediate earnings impact as well as incremental ramp-up as some of the assets are repositioned. The portfolio repositioning is on track and was approximately 75% complete at the end of the quarter. The remainder will occur over the next six to nine months. During the quarter, we deployed $233 million of capital into in-force transactions, in addition to the previously announced $1.5 billion into the Equitable transaction. We also completed $75 million of share repurchases at an average price of $184.58. Our capital position remained strong, and we ended the quarter with estimated excess capital of $2.3 billion and estimated deployable capital of $3.4 billion.

The portfolio repositioning is on track and was approximately 75% complete at the end of the quarter. The remainder would occur over the next six to nine months.

Results for the block continue to be in line with expectations. As a reminder, this block is expected to have highly diversified sources of earnings splits, roughly between fee income, underwriting margin, and investment spread.

During the quarter, we deployed $233 million of capital into in force transactions. In addition to the previously announced $1 5 billion into the Accretable transaction.

This is 1 of the reasons. The transaction was so attractive to us, given the Diversified sources of earnings. This is immediate earnings impact as well as incremental ramp up as some of the assets are repositioned

We also completed $75 million of share repurchases at an average price of $184 58.

The portfolio repositioning is on track and was approximately 75%. Complete at the end of the quarter.

The remainder will occur over the next 6 to 9 months.

Our capital position remains strong and we ended the quarter with estimated excess capital of $2 $3 billion and estimated deployable capital of three port $4 billion.

During the quarter, we deployed 233 million dollars of capital into enforced transactions. In addition to the previously announced 1.5 billion into the Equitable transaction.

The effective tax rate for the quarter was 19, 6% on adjusted operating income before taxes below the expected range of 23% to 24% primarily due to the jurisdictional mix of earnings.

We still expect a tax rate of 23% to 24% for the full year.

Jeff Hopson: The effective tax rate for the quarter was 19.6% on adjusted operating income before taxes, below the expected range of 23% to 24%, primarily due to the jurisdictional mix of earnings. We still expect a tax rate of 23% to 24% for the full year. Our traditional business premium growth was 8.5% year-to-date on a constant currency basis, which has benefited from strong growth in the U.S., AMEA, and APAC. Premiums are a good indicator of the ongoing vitality of our traditional business, and we continue to have strong momentum across our regions. Turning to biometric claims experience, as outlined on slide 9 of our earnings presentation. Economic claims experience was favorable by $5 million in the quarter, primarily driven by APAC and Canada, partially offset by the U.S. traditional segment. The corresponding current-period financial impact was unfavorable by $50 million. Claims experience in U.S.

We also completed $75 million of share repurchases at an average price of $184.58. Our capital position remains strong, and we ended the quarter with an estimated excess capital of $2.3 billion and estimated deployable capital of $3.4 billion.

Yeah.

Our traditional business premium growth was eight 5% year to date on a constant currency basis, which has benefited from strong growth in the U S EMEA and APAC.

Premiums are a good indicator of the ongoing vitality of our traditional business and we continue to have strong momentum across all regions.

The effective tax rate for the quarter was 19.6%, on adjusted operating income before taxes below. The expected range of 23 to 24%, primarily due to the jurisdictional mix of earnings. We still expect a tax rate of 23 to 24% for the full year.

Turning to biometric claims experience as outlined on slide nine of our earnings presentation.

Economic claims experience was favorable by $5 million in the quarter, primarily driven by APAC and Canada, partially offset by the U S traditional segment.

our traditional business premium growth was 8.5% year to date on a constant currency basis, which has benefited from strong growth in the US EMA and APAC,

The corresponding current period financial impact was unfavorable by $50 million.

Premiums are a good indicator of the ongoing vitality of our traditional business, and we continue to have strong momentum across our regions.

Claims experience in U S individual life and group were modestly unfavorable.

Turning to biometric claims experience, as outlined on slide 9 of our earnings presentation.

As discussed last quarter, our expectation was that the group business overall will be approximately breakeven for the second half of the year and that remains true.

Economic claims experience was favorable by 5 million in the quarter primarily driven by aipac and Canada partially offsets by the US traditional segment.

Over the longer term economic claims experience for the total company has been favorable by $277 million since the beginning of 2023, when we more fully emerge from Covid.

Jeff Hopson: individual life and group were modestly unfavorable. As discussed last quarter, our expectation was that the group business overall will be approximately break-even for the second half of the year, and that remains true. Over the longer term, economic claims experience for the total company has been favorable by $277 million since the beginning of 2023, when we more fully emerged from COVID. As a reminder, the favorable economic experience that has not been recognized through the accounting results will be recognized over the remaining life of the business. I'll now make a few comments on the notable items reported in the period, which relate to the results of our annual actuarial assumptions review. The overall economic impact of the assumptions update is positive from a long-term value perspective and future run rates.

James experience in US, individual life and group where modestly unfavorable.

As a reminder, the favorable economic experience that has not been recognized through the accounting results will be recognized over the remaining life of the business.

As discussed last quarter, our expectation was that the group business overall will be approximately break-even for the second half of the year, and that remains true.

I'll now make a few comments on the notable items reported in the period, which relates to the results of our annual actuarial assumption review.

The overall economic impact of the assumptions update is positive from a long term value perspective, and future run rates.

Over the longer-term, economic claims experience for the total company has been favorable by $277 million since the beginning of 2023. When we more fully emerged from Co...

As presented on slide seven the impact can be split into two components, a negative $149 million of current period impact due to <unk> cohort <unk>.

As a reminder, the favorable economic experience that has not been recognized through the accounting results will be recognized over the remaining life of the business.

Anomic, a few comments on the notable items reported in the period, which relates to the results of our annual actual assumptions review.

And a positive $600 million impact to long term value.

Said another way <unk> did not exist. The total impact is a benefit of $450 million.

Jeff Hopson: As presented on slide 7, the impact is split into two components: a negative $149 million current-period impact due to LDTI cohorting and a positive $600 million impact to long-term value. Said another way, if LDTI did not exist, the total impact is a benefit of $450 million. These updates will increase annual run rates by $15 million, gradually increasing to $25 million annually by 2040. Moving to the quarterly segment results on slide 6, the U.S. and Latin America traditional results reflected modestly unfavorable claims experience, partially offset by the favorable impact from in-force management actions. In our group business, as mentioned, results were approximately break-even and in line with our updated 2025 expectations, and the block will be fully repriced by January 2026. The U.S. Financial Solutions results reflected the contribution from the Equitable transaction, partially offset by lower variable investment income.

The overall economic impact of the assumptions update is positive from a long-term value perspective and future run rates.

These updates will increase annual run rates by $15 million gradually increasing to $25 million annually by 2040.

As presented on slide 7, the impact is split into two components: a negative $149 million current period impact due to LDTI cohorting.

And a positive, 600 million dollar impact to long-term value.

Moving to the quarterly segment results on slide six.

The U S and Latin America traditional results reflected modestly unfavorable claims experience, partially offset by the favorable impact from enforce management actions.

Said, another way if LDTI did not exist, the total impact is a benefit of $450 million.

In our group business as mentioned results were approximately breakeven and in line with our updated 2025 expectations and the block will be fully repriced by January 2026.

These updates will increase annual run rates by 15 million gradually increasing to 25 million annually by 2040.

Moving to the quarterly segment results on slide 6.

The U S financial solutions results reflected the contribution from the equitable transaction, partially offset by lower variable investment income.

The U.S. and Latin America traditional results reflected modestly unfavorable claims experience, partially offset by the favorable impact from enforcement management actions.

The results from the Accretable block were in line with expectations.

For the full year, we still expect this transaction to contribute around $70 million of pre tax income increasing to $160 million to $170 million in 2026, and approximately $200 million per year by 2027.

In our group business, as mentioned, results were approximately break-even and in line with our updated 2025 expectations. The block will be fully repriced by January 2026.

Jeff Hopson: The results from the Equitable block were in line with expectations. For the full year, we still expect this transaction to contribute around $70 million of pre-tax income, increasing to $160 to $170 million in 2026 and approximately $200 million per year by 2027. Canada traditional results reflected unfavorable group experience, partially offset by favorable individual life claims experience. The Financial Solutions results in Canada were in line with expectations. In the Europe, Middle East, and Africa region, the traditional results reflected favorable underwriting margins. AMEA's Financial Solution results reflected favorable longevity experience and continued growth in the segment. This segment continues to be a bright spot for us. Turning to our Asia Pacific region, traditional had another good quarter, reflecting favorable claims experience and the benefit of ongoing growth.

The US Financial Solutions results reflected the contribution from the Equitable transaction partially offset by lower variable investment income.

Yeah.

Canada traditional results reflected unfavorable group experience, partially offset by favorable individual life claims experience.

The results from the Equitable block were in line with expectations.

The financial solutions results in Canada were in line with expectations.

In the Europe, Middle East and Africa region. The traditional results reflected favorable underwriting margins Emea's financial solutions results reflected favorable longevity experience and continued growth in the segment.

For the full year. We still expect this transaction to contribute around 70 million dollars of pre-tax income increasing to 160 to 170 million dollars in 2026 and approximately 200 million dollars per year by 2027.

Canada traditional results, reflected unfavorable group experience partially offset by favorable individual. Life claims experience.

This segment continues to be a bright spot for us.

The Financial Solutions results in Canada were in line with expectations.

Turning to our Asia Pacific region.

Traditional had another good quarter, reflecting favorable claims experience and the benefits of ongoing growth.

This segment continues to perform at a high level, a reflection of our excellent competitive position and our execution of value added solutions to clients.

In Europe, the Middle East, and Africa region, the traditional results reflected favorable underwriting margins. EMAs financial solutions results reflected favorable longevity experience and continued growth in the segment.

This segment continues to be a bright spot for us.

Financial solutions results were in line with expectations with a modest unfavorable the unfavorable impact from lower variable investment income.

Turning to our asia-pacific region.

Jeff Hopson: This segment continues to perform at a high level, a reflection of our excellent competitive position and our execution of value-added solutions to clients. Financial solutions results were in line with expectations, with a modest unfavorable impact from lower variable investment income. Finally, the corporate and other segment reported an adjusted operating loss before tax of $58 million, unfavorable compared to the expected quarterly average run rate. This was primarily due to lower variable investment income and higher general expenses. Moving to investments on slides 10 through 13, the non-spread book yield, excluding variable investment income, was slightly lower than Q2, primarily due to higher levels of cash for part of the quarter. The new money rate remains well above the portfolio yield, providing a tailwind to our overall book yield.

Traditional had another good quarter, reflecting favorable claims experience and the benefit of ongoing growth.

Finally, the corporate and other segment reported an adjusted operating loss before tax of $58 million unfavorable.

Unfavorable compared to the expected quarterly average run rate.

This segment continues to perform at a high level, a reflection of our excellent competitive position and our execution of value-added solutions to clients.

Primarily due to lower variable investment income and higher general expenses.

Financial Solutions results were in line with expectations with a modest unfavorable unfavorable impact from lower variable investment income.

Moving to investments on slides 10 through 13, the non spread book yield excluding variable investment income was slightly lower than Q2, primarily due to higher levels of cash for part of the quarter.

The new money rates remains well above the portfolio yield providing a tailwind to our overall book yield.

Finally, the corporate and other segments reported an adjusted operating loss before tax of 58 million unfavorable compared to the expected quarterly average run rate, this was primarily due to lower variable investment income and higher General expenses.

Total variable investment income was below expectations by around $40 million, primarily due to lower real estate joint venture activity.

Overall, our portfolio quality remains high and credit impairments are better than expectations for the year, notably we have zero direct exposure to the recent OTO sector of bankruptcies.

Moving to Investments on slides 10 through 13, the non-real excluding a variable investment income was slightly lower than Q2 primarily due to higher levels of cache. For part of the quarter. The new money rate remains well above the portfolio yield

Jeff Hopson: Total variable investment income was below expectations by around $40 million, primarily due to lower real estate joint venture activity. Overall, our portfolio quality remains high, and credit impairments are better than expectations for the year. Notably, we have zero direct exposure to the recent auto sector bankruptcies. Turning now to capital, our excess capital ended the quarter at an estimated $2.3 billion, and our deployable capital was an estimated $3.4 billion. It's important to note that we manage capital through multiple frameworks, including our internal economic capital, regulatory capital, and rating agency capital. From a regulatory lens, we maintain ample levels of regulatory capital in the jurisdictions where we operate. Also, our strong ratings are important to our counterparty strength. Thus, we manage our rating agency capital to support these ratings. On a holistic basis, considering all capital frameworks, we are well capitalized.

Providing a tailwind to our overall book yield.

Turning now to capital or excess capital ended the quarter at an estimated $2 3 billion.

Total variable investment income was below expectations by around $40 million, primarily due to lower real estate joint venture activity.

And our deployable capital was an estimated $3 4 billion.

Overall, our portfolio.

Remains High. And

credit impairments are

It's important to note that we manage capital through multiple frameworks, including our internal economic capital regulatory capital and rating agency capital.

Notably, we have zero direct exposure to the recent Auto sector bankruptcies.

From a regulatory lens, we maintain ample levels of regulatory capital in the jurisdictions, where we operate also our strong ratings are important to our counterparty strength. Thus, we manage our rating agency capital to support these ratings.

Turning now to Capital, our excess capital ended the quarter at an estimated $2.3 billion, and our deployable capital was an estimated $3.4 billion.

On a holistic basis, considering all capital frameworks, we are well capitalized.

In the quarter, we successfully retro ceded a mid sized block of USP, our tea business to Ruby REIT and we are actively working on additional retro sessions, we still expect the vehicle to be fully deployed by the middle of 2026.

From a regulatory lens, we maintain ample levels of regulatory capital in the jurisdictions where we operate. Also, our strong ratings are important to our counterparty strength. Thus, we manage our rating agency cap at all to support these ratings.

Yeah.

Looking ahead, we will balance capital deployment into the business with returning capital to shareholders through quarterly dividends and share repurchases. Our intention remains to be opportunistic with share repurchases quarter by quarter, depending on our capital position our forward view of our transaction pipeline and valuation metrics.

Jeff Hopson: In the quarter, we successfully retroceded a mid-sized block of U.S. PRT business to Ruby Re, and we are actively working on additional retrocessions. We still expect the vehicle to be fully deployed by the middle of 2026. Looking ahead, we will balance capital deployment into the business with returning capital to shareholders through quarterly dividends and share repurchases. Our intention remains to be opportunistic with share repurchases quarter by quarter, depending on our capital position, a forward view of our transaction pipeline, and valuation metrics. Over the longer term, we expect total shareholder return of capital through dividends and share repurchases to range between 20% to 30% of after-tax operating earnings on average, consistent with our long history. During the quarter, we continued our long track record of increasing book value per share.

On the holistic basis considering all capital Frameworks we are well capitalized.

In the quarter, we successfully retro seeded, a mid-sized block of us PRT business to Ruby re and we are actively working on additional retro sessions. We still expect the vehicle to be fully deployed by the middle of 2026.

Over the longer term, we expect total shareholder return of capital through dividends and share repurchases to range between 20% to 30% of after tax operating earnings on average consistent with our long history.

During the quarter, we continued our long track record of increasing book value per share as shown on slide 17, while book value per share, excluding <unk> and the impacts from <unk> 36 embedded derivatives increased to $159 83.

Looking ahead, we will balance Capital deployment into the business with returning Capital to shareholders through quarterly, dividends and share repurchases. Our intention remains to be opportunistic with share repurchases quarter by quarter depending on our Capital position. A forward view of our transaction Pipeline and valuation metrics.

Over the longer term, we expect total shareholder return of capital.

Which represents a compounded annual growth rate of nine 7% since the beginning of 2021.

Through dividends and share repurchases to range between 20 to 30% of after tax operating earnings on average consistent with our long history.

Jeff Hopson: As shown on slide 17, our book value per share, excluding AOCI and impacts from B36 embedded derivatives, increased to $159.83, which represents a compounded annual growth rate of 9.7% since the beginning of 2021. Moving to slide 18, we provided an update on the value of in-force business margins, which significantly increased since the end of 2024, reflecting the very strong new business momentum. Overall, we believe this is an additional lens through which to assess the long-term earnings power of our business that will emerge over time, and we are pleased with the results. All in all, this was a great quarter with strong operating results. In addition, we continue to advance many strategic objectives. Our long-term strategy remains well on track, and we are confident in our ability to deliver on our intermediate-term financial targets.

Moving to slide 18, we provided an update on the value of in force business margins, which significantly increased since the end of 2020 for rift.

Reflecting the very strong new business momentum.

Overall, we believe this has an additional lens through which to assess the long term earnings power of our business that will emerge over time.

During the quarter. We continued our long track record of increasing book value per share. As shown on slide 17, our book value per share excluding aoci and impacts from b36 embedded. Derivatives increased to 15983 cents which represents a compounded annual growth rate of 9.7% since the beginning of 2021.

The results.

All in all this was a great quarter with strong operating results. In addition, we continue to advance many strategic objectives. Our long term strategy remains well on track and we are confident in our ability to deliver on our intermediate term financial targets.

Moving to slide 18, we provided an update on the value of enforce business margins. Which significantly increase since the end of 2024

Reflecting the very strong new business momentum.

We continue to see very good opportunities across our geographies and business lines and remain well capitalized to execute on our strategic plan.

Overall, we believe this is an additional lens through which to assess the long-term earnings power of our business that will emerge over time and...

with the results.

We also believe we are in a position to return excess capital to shareholders through dividends and share repurchases.

With that I would like to thank everyone for your continued interest in <unk>. This concludes our prepared remarks, we would now like to open it up for questions.

Jeff Hopson: We continue to see very good opportunities across our geographies and business lines and remain well capitalized to execute on our strategic plan. We also believe we are in a position to return excess capital to shareholders through dividends and share repurchases. With that, I would like to thank everyone for your continued interest in RGA. This concludes our prepared remarks. We would now like to open it up for questions. Thank you. We will now begin the question and answer session. Please limit yourself to one question and a single follow-up. If you have additional questions, you can rejoin the queue. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star and then two.

All in all, this was a great quarter with strong operating results. In addition, we continue to advance many strategic objectives or long-term strategy remains well on track. And we are confident in our ability to deliver on our intermediate term Financial targets.

Thank you.

We will now begin the question and answer session. Please limit yourself to one question and a single follow up if you have additional questions you can rejoin the queue.

We continue to see very good opportunities across our geographies and business lines and remain. Well capitalized to execute on our strategic plan.

We also believe we are in a position to return excess Capital to shareholders through dividends and share repurchases.

Ask a question you May press Star then one on your telephone keypad.

If you are using a speakerphone please pick up your handset before pressing the keys.

With that, I would like to thank everyone for your continued interest in RGA. This concludes our prepared remarks. We would now like to open it up for questions.

To withdraw your question. Please press Star and then two.

At this time, we will pause momentarily to assemble our roster.

And your first question today will come from Wes Carmichael with Autonomous research. Please go ahead.

Thank you. We will now begin the question and answer session. Please let me yourself to 1 question and a single follow-up. If you have additional questions, you can rejoin the queue.

to ask a question, you may press star then 1 on your telephone keypad,

Hey, good morning. Thank you for taking the question. The first one was just on the U S claims activity in traditional in the quarter just wanted to see if you could unpack current experience if thats just normal volatility in your view, if there's anything one time ish kind of items in there.

If you are using a speaker-phone, please pick up your handset before pressing the keys.

Jeff Hopson: At this time, we will pause momentarily to assemble our roster. Your first question today will come from Wes Carmichael with Autonomous Research. Please go ahead. Hey, good morning. Thank you for taking the question. The first one was just on the U.S. claims activity and traditional. In the quarter, I just wanted to see if you would unpack current experience, if that's just normal volatility in your view, or if there's any one-time-ish kind of items in there. Yeah, sure, Wes. Thanks for the question. On the U.S. triad side, we had about $30 million of negative claims experience on the individual life side. That's really kind of normal volatility if you look at it. On a historical basis, it's well below a standard deviation. Frankly, modest. Noise there.

To withdraw your question. Please press star and then 2

At this time, we will pause momentarily to assemble our roster.

Yeah sure. Thanks for the question.

And your first question today, will come from West Carmichael with autonomous research. Please go ahead.

The U S trad side.

So we had about 30.

$30 million of claims experience from negative claims experience on the individual life side.

That's really kind of normal volatility if you look at it.

Hey, good morning, thank you for taking the question. Uh, the first 1 was just on the US claims activity and traditional in the quarter. Just wanted to see if you would unpack, Uh, current experience, if that's just normal volatility, in your view, if there's any 1-time, ish, kind of items in there,

Historical basis, it's well below a standard deviation, so frankly modest.

Modest noise, there and then on the group side as indicated last quarter and consistent with the expectations that we had said we had about a $20 million negative experience.

Got it thanks, Axel and maybe sticking with that segment U S. Traditional in the current quarter.

Yeah, sure, always. Thanks for the question. Um, on the US Strat side. Um, so we had about, um, 30 million dollars of, uh, claims experience from of negative claims experience on the individual life side. Uh, that's really kind of normal volatility, you know, if you look at it, um, on on a, on a historical basis, it's a, it's well below a standard deviation.

Were there any one time items that impacted premiums it looked like premium growth was a little bit softer there than the rest of the enterprise and if so what was kind of the underlying growth rate there.

Jeff Hopson: On the group side, as indicated last quarter and consistent with the expectations that we had set, we had about a $20 million negative experience. Got it. Thanks, Axel. Maybe sticking with that segment, U.S. traditional in the current quarter. Were there any one-time items that impacted premiums? It looks like premium growth was a little bit softer there than the rest of the enterprise. If so, what was kind of the underlying growth rate there? Yeah. On the U.S. premium side, in the quarter, we had an in-force action, a recapture of a treaty, which resulted in a positive impact to the results of about $20 million. The flip side of that is that we didn't record the premiums that we would have got from that treaty. That's really the main driver for the reduction in premiums. Your next question today will come from John Barnidge with Piper Sandler.

Yes, so on the on the U S premium side. So in the quarter, we had a <unk> section. So a recapture of a treaty, which resulted in a positive impact to the results of about $20 million.

So, frankly, modest, uh, modest noise there. And then on the group side, as indicated, last quarter, uh, inconsistent with the expectations that we had set, we had about a 20 million dollar negative experience,

The flipside of that is that we didn't we didn't record the premiums that we would have got from that treaty and so that's really the main driver for the.

Got it. Thanks axle. And and maybe sticking with the that segment us traditional on the current quarter. Um, were there any 1 time items that impacted premiums? It looked like premium growth was a little bit softer there than the rest of the Enterprise. And and if so, what was kind of the underlying growth rate their

The reduction in premiums.

And your next question today will come from John Barnidge with Piper Sandler. Please go ahead.

Good morning, Thanks for the opportunity.

There was a recent report in September.

With three suggesting the mortality reduction from <unk>, one drugs of up to six 4% in the U S and $5 one.

Um, yeah, so on the on the US premium side. So in the quarter we uh we had a, an enforce action. So a a recapture of a treaty which uh, resulted in a positive impact, um, to the results of about 20 million dollars. Uh, and so the flip side of that is that we didn't, uh, we didn't record the premiums that we would have got from that treaty. And so that's really the main driver for the, the, the reduction in premiums.

The U K.

Jeff Hopson: Please go ahead. Good morning. Thanks for the opportunity. There was a recent report in September from Swiss Re suggesting a mortality reduction from GLP-1 drugs of up to 6.4% in the U.S. and 5.1% in the U.K. How soon would it make sense to maybe recognize that benefit either in pricing or in your assumptions? Thank you. Hi, John. Thanks for the question. This is Jonathan. We haven't made any material changes to our assumptions due to anti-obesity medication, but the benefits from these medications have increased our confidence that our existing mortality improvement assumptions will be realized in the future. We've done some significant modeling and analysis, and we continue to believe that anti-obesity medications, including GLP-1s, will have a meaningful benefit on population-level mortality.

How soon would it make sense to maybe recognize that benefit either in pricing.

Good morning, thanks for the opportunity.

Or in your assumptions. Thank you.

Hi, John Thanks for the question this is Jonathan.

So we havent made any material changes to our assumptions due to the anti obesity medication, but the benefits from these medications have increased our confidence that our existing mortality improvement assumptions will be realized in the future. We've done some significant modeling and analysis and we continue to believe that anti obesity medications, including <unk>, while they're meaningful.

there is a recent report, in September, from a Swiss re suggesting a mortality reduction from gdlp, 1, drugs of up to 6.4% in the US and 5.1

in the UK.

How soon would it make sense to maybe recognize that benefit, either on pricing?

Or in your assumptions. Thank you.

Benefit on population level mortality and going forward, we will continue to regularly assess the data in our model and expectations as to how this population improvement translates through to our insured book of business.

Specifically for the study that you referenced.

Our analysis is generally aligned with a central estimate that test Swiss re has as well.

Jeff Hopson: Going forward, we'll continue to regularly assess the data and our model and expectations as to how this population improvement translates through to our insured book of business. Specifically for the study that you referenced, our analysis is generally aligned with a central estimate that Swiss Re has as well. Our numbers are consistent with their central estimate. I think the numbers you quoted were on the high end of their estimate. Thank you. Yeah, those were the bull case outcomes. My follow-up, I believe the lift to annual run rate is $15 million over the intermediate term and would be expected to grow. To what level would it be expected to grow in the max year? Thank you for the opportunity to ask questions. Thank you, John. Just to clarify, I think you referred to the impact of the actual assumptions update.

So our numbers are consistent with our centralized and I think the numbers you quoted were on the high end of their estimate.

Yeah.

Thank you, yes, those were the bulk case outcomes. My followup believed the live to annual run rate is $15 million over the intermediate term and would be expected to grow.

Hi John, thanks for the question. This is Jonathan. Uh, so we have it made any material changes to our assumptions due to anti-obesity medication. But the benefits from these medications have increased our confidence that our existing mortality Improvement. Assumptions will be realized in the future. We've done some significant modeling and Analysis and we continue to believe that anti-obesity to medications including glp 1's. We'll have a meaningful benefit on population level mortality and going forward. We'll continue to regularly assess the data and our model and expectations as to how this population, um, Improvement translates through to our insured book of business.

What level would be expected to grow in the Max year. Thank you for the opportunity to ask questions.

Uh, specifically for the study that you referenced. Uh, our, our analysis is generally aligned with, uh, a central estimate that that Swiss re has as well. Um, so the our numbers are consistent with their centralism. I think the numbers you quoted were on the high end of their estimate.

Uh huh.

Yes. So thank you John So just to clarify I think you referred to the impact of the actual assumptions update as I mentioned.

The accounting impact and does the sort of long term value impact $600 million, which would be recognized over time.

Thank you. Yeah those were the bulk case outcomes. Uh my follow-up. Believe the lift to annual run rate is 15 million over their intermediate term and would be expected to grow.

That $600 million esque.

To what level would it be expected to grow in the max year? Thank you for the opportunity to ask questions.

<unk> would increase our run rates by $15 million next year, So annual increase of $15 million, which then gradually ramp up ramps up to a $25 million.

Jeff Hopson: As I mentioned, there's the accounting impact, and there's the kind of long-term value impact, the $600 million, which will be recognized over time. That $600 million essentially would increase our run rates by $15 million next year, so annual increase of $15 million, which then gradually ramps up to a $25 million increase to the annual run rates by 2040. Your next question today will come from Jimmy Bhullar with JPMorgan. Please go ahead. Hey, I had a couple of questions. First, just on your expectations for Ruby Re. You mentioned you expect it to be, the pipeline to be filled or whatever your intentions were in terms of business activity. What type of liabilities are you considering for the structure? Obviously, there's a lot of demand for reinsurance or deals on some of these legacy liabilities. To what extent do those fit in your plans as well?

Um, yes. So thank you, John. So just to clarify, I think you you refer to the uh the impact of the actual assumptions. Uh, update. As I mentioned.

The increase to the annual run rate by 2040.

And your next question today will come from Jimmy Buhler with Jpmorgan. Please go ahead.

Hey, I had a couple of questions first one just on <unk>.

The your expectation for it will be the you mentioned you expect it to be.

The pipeline to be filled or your whatever your intentions were in terms of business activity what type of liabilities are you considering for the structure.

There was this, the accounting impact and there's the the type of long-term value impact, uh, the 600 million dollars, which would be recognized over time. Uh, that 600 million dollars essentially would increase our run rates by 15 million dollars, uh, next year, so annual increase of 15 million dollars, which then gradually ramp up, ramps up to a 25 million dollar uh uh increase to the annual run rate by 2040.

And your next question today will come from Jimmy Bueller with J.P. Morgan. Please go ahead.

Obviously, theres a lot of demand for reinsurance or deals on them.

These legacy liabilities.

To what extend do those fit in your plans as well and then I have a follow up.

Sure. Thanks. Thanks for the question, yes, so we will be re so we were pleased to see another transaction.

Seeded into the vehicle this quarter as.

As you May recall, the vehicle was set up to really.

Take in U S asset intensive type transactions.

Jeff Hopson: I have a follow-up. Sure. Thanks for the question. Ruby Re, we were pleased to see another transaction seeded into the vehicle this quarter. As you may recall, the vehicle was set up to really take in U.S. asset-intensive type transactions. We have a pipeline of transactions that we already have on our books that we're working through the process of seeding into the vehicle, which is why we're saying we have the confidence that we will be fully deployed by the middle of 2026. Taking a step back, we've mentioned that sidecars, third-party capital, is a core component of our strategy. We expect in the future to be pursuing other sidecars and for that to be a nice supplement to our ability to deploy capital over time. The type of liabilities include just annuities or LPC VAs with living benefits as well?

Hey, uh, I had a couple of questions first, just on, um, your expectations for Ruby. You mentioned you expected it to be, um, the pipeline to be filled or your whatever your intentions were in terms of business activity. What type of liabilities are you considering for the structure? And, um, obviously there's a lot of demand for reinsurance or deals on some of these legacy liabilities. To what extent do those that are in your...

Plans as well. And then I have a follow-up.

In terms of we have a pipeline of transactions that we already have on our books that we're working through the process of seeding into the vehicle.

<unk>, which is why we're saying we have the confidence that we will be fully deployed by the middle of 2026.

I think just taking a step back we've mentioned that side cars third party capital.

Sure, thank thanks for the question. Um yeah so Ruby re um so we were pleased to see another transaction uh seated into the vehicle this quarter. Uh as you may recall the recall was set up to really um take in US asset intensive type transactions.

As a core component of our strategy.

We expect in the future to be pursuing other side cars and.

And for that should be a nice supplement to our ability to deploy a total overtime.

Um in terms of, you know, we have a pipeline of transactions that we already have on our books that we're working through the process of seating into the vehicle uh which which is why we're saying we have the confidence that we will be fully deployed by the middle of 2026.

And then the type of liabilities include.

Just annuities or like LTC the living.

<unk> as well.

Yeah.

So <unk> really focused on relatively simple liabilities, what we call asset intensive.

Things such as pension risk transfer.

Um you know, I think just taking a step back we've we've mentioned that sidecars third-party Capital uh, you know, is a core component of our strategy. Um we expect in the future to be uh pursuing other side cars. Uh, and for that to be a nice supplement to our ability to deploy all over time,

Other types of liabilities that have some biometric risk, but that are relatively relatively vanilla.

As we explore new vehicles for the vehicles. We will also potentially open the aperture of liabilities, but I want to make clear that we focus on what's where our expertise is our expertise is in combining the two sides of the balance sheet the biometric risk in the asset side.

And then the types of liabilities include, um, just to note, or, um, like LPCs, EVs, with living benefits as well.

Jeff Hopson: Ruby Re is really focused on relatively simple liabilities, what we call asset-intensive. Those are things such as pension risk transfer, other types of liabilities that have some biometric risk, but that are relatively vanilla. As we explore new vehicles, further vehicles, we will also potentially open the aperture of liabilities. I want to make clear that we focus on where our expertise is. Our expertise is in combining the two sides of the balance sheet, the biometric risk and the asset side, in the types of transactions that we have a track record of executing. The intent is not to open new avenues that we have no expertise or track record in. Your next question today will come from Ryan Krueger with KBW. Please go ahead. Hey, thanks. Good morning. I had a question on in-force actions. You've done a number of things over the last few years.

And the types of transactions that we have a track record of executing so the intent is not to open new avenues that we have no expertise or track record in.

And your next question today will come from Ryan Krueger with <unk>. Please go ahead.

Hey, Thanks, Good morning, I had a question on in force actions, you've done a number of things over the last few years.

I was just hoping to get an update on how far along you think you are at this point and in the kind of opportunities that you still haven't going forward to do more actions on the in force.

Of liabilities, but I want to make clear that, you know we focus on what where our expertise is. Our expertise in is in combining the 2 sides of the balance sheet, the biometric risk and the asset side uh in the types of transactions that we have a track record of executing. So the intent is not to um, open new avenues that we have no expertise or track record in.

And your next question today, will come from Ryan grigor with KBW. Please go ahead.

So maybe I can I can get started just in terms of the numbers and pass it onto Tony.

So in force actions, we've talked about it on the number of calls we had significant.

Jeff Hopson: I was just hoping to get an update on how far along you think you are at this point in the kind of opportunities that you'd still have going forward to do more actions on the in-force. Maybe I can get started just in terms of the numbers and pass it on to Tony. In-force actions, we've talked about it on a number of calls. We had significant contribution to earnings in 2023, 2024. If you recall, at the beginning of the year when we talked about our intermediate-term financial targets, we said that we were expecting about $50 million a year of in-force actions. Of course, as we said, those can be lumpy, and at times, you can have a year where you are well above the $50 million, potentially below. This year, 2025, year to date, we're at about $45 million of cumulative in-force actions.

Contribution to earnings in $2023 2024, if you recall at the beginning of the year, when we talked about or intermediate term financial targets. We said that we were we were expecting about $50 million a year of in force actions of course, it's as we as we said those can be lumpy and so we cannot.

Hey, thanks. Good morning. Uh, I had a question on in force actions. You you've done a number of things over the last few years. Um, it's just helping to get an update on, you know, how far along you think you. You are at this point in in the the kind of opportunities that you would you still have going forward to do more actions on the in force.

So, so maybe I can, I can get started just in terms of the numbers and, and pass it on to Tony. Um, you know, so info sections, we we've talked about it, uh, on the number of calls, we had significant

Times, you can have a year, where you are well above the $50 million potentially below.

This year 2025 year to date, we're at about $45 million of cumulative enforce actions. So it's nice nicer and on track and consistent with that with that run rate.

And then we have a number of opportunities to continue to execute on enforce management actions throughout the book, Yes, Ryan maybe just to add.

Contribution to earnings in 2023 2024. Um if you recall uh at the beginning of the year, when we talked about our intermediate term Financial targets, we said that you know we were um we were expecting about $50 million a year of enforce actions. Of course, it's as we as we said, those can be lumpy. And so we can at times you can have a year where you are well above the fifty million dollars potentially below um this year 2025 um year to date.

This is a discipline that.

Jeff Hopson: It's nice and on track and consistent with that run rate. We have a number of opportunities to continue to execute on in-force management actions throughout the book. Yeah, Ryan, maybe just to add, this is a discipline that I would argue started in the U.S. before, but is very much around the globe. Even this quarter, we're seeing those actions. It's not just the U.S., it's across the globe. That's the first point. The second point is I want to emphasize that's why risk management is so critical for us. We are all over the risk, and then it's a question of, okay, how do we, once we fully understand the blocks of business, we then leverage our strong partnerships with our clients to come up with true win-win solutions.

I would argue it started in the U S before but it's very much around the globe. So even this quarter, we're seeing those actions not just the U S. That's across the globe.

So that's the first point and then the second point is.

We're at about 45 million dollars of cumulative, enforce actions, so it's nice. Nice and on track and consistent with that, uh, with that run rate. Um, and then we have, you know, a number of opportunities to continue to um to execute on enforcement actions throughout the book.

I want to emphasize that's why risk management is so critical for us.

Yeah, Ron. Maybe just to add um,

you know, this is a discipline that um,

We are all over the risk.

And then it's a question of Okay. How do we once we fully as we didn't fully understand the blocks of business. We then leverage off our strong partnerships with our clients to come up with a true win win solutions oftentimes.

I would argue it started in the U.S. before, but it's very much around the globe. So even this quarter, we're seeing those actions. It's not just the U.S.; it's across the globe. So that's the first point. And then the second point is,

As we go through these conversations with our clients it really hasnt impacted our ability to write new business, but then sometimes it actually strengthens it because youre getting through.

Yes.

Tough conversations in the right manner.

Jeff Hopson: Oftentimes, as we go through these conversations with our clients, it really hasn't impacted our ability to write new business with them. Sometimes it actually strengthens it because you're getting through potentially tough conversations in the right manner. We're very delighted with our approach, and as Axel André said, we continue to deliver on it. It's not drying up in any way. It's just an ongoing part of our business that we expect to continue to do going forward. Thank you. I had a follow-up, I guess going back to last quarter on the value in-force benefit to excess capital. It just seems like there's been some skepticism from others about if this is fully, if that benefit is fully able to be deployed into growth going forward. I just wanted to come back to that and confirm that there's no restrictions on that.

We're very delighted with our approach.

And as <unk> said, we continue to deliver on it we don't its not drawing up in any way. It's just an ongoing part of our business.

We expect to continue to do going forward.

Thank you.

And then I had a follow up I guess going back to last quarter is on the value enforce benefit to access capital.

There's been some skepticism from.

This is not from you but from others about.

If this is felipe.

You know, I want to emphasize that's why risk management is so critical for us. Um you know we we all over the risk. Um and then it's a question of okay how do we once we fully as we do fully understand the blocks of business? We then leverage off our strong Partnerships with our clients to come up with, you know, true win-win Solutions. Often times uh as we go through these conversations with our clients. It really hasn't impacted our ability to write new business with them. Sometimes that actually strengthens it because, you know, you're getting through, you know, potentially tough conversations in the right manner. So, uh, we're very delighted with our approach, um, and as, as axial said, you know, we continue to deliver on it, we don't, it's not drying up in any way, it's just an ongoing part of our business, um, that we expect to continue to do going forward.

That benefit is fully able to be deployed.

Growth going forward.

So I guess I just wanted to just.

Come back to that in.

Confirm that there's no restrictions on that.

The full blessing from rating agencies.

Part of your capital that you can deploy now going forward.

Yeah. So thanks, Thanks, Ryan for the question so.

So let me let me so first let me say that yes. We have this capital represents real capital that is available to be deployed in two transactions.

Thank you. Uh and then I had a follow-up, I guess going back to last quarter it. Um, on the value, enforced benefit to to access Capital. Um, just seems like there's there's been some skepticism from out, you know, that that this is, um, not from you, but from others about, um, you know, if this is fully if if that if that benefit is fully able to be deployed um, into into growth going forward. Um, so I guess I just wanted to, you know, just just come back to that and

Jeff Hopson: You have the full blessing from rating agencies, and that's a part of your capital that you can deploy now going forward. Yeah, thanks, Ryan, for the question. First, let me say that, yes, this capital represents real capital that is available to be deployed into transactions. Let me take a step back and remind you, our excess capital is really across our three frameworks: economic capital, regulatory, and rating agency. We really look at what is the binding constraint. We have at least that amount of excess capital from each of the following lenses since we take the binding constraints. I think everybody would recognize that from a regulatory capital perspective, that is capital that is there in the legal entities available to be deployed. Obviously, there are different regulatory frameworks and different legal entities, but real capital available to be deployed.

But let me take a step back and remind you our excess capital is really across all three frameworks economic capital regulatory and rating agency and we really look at what is the biting constraint. So we have at least.

Confirm that like there's no restrictions on on that you know you you have the full blessing from raiding agencies and that's that's a part of your Capital. They can deploy now going forward

Yeah, so thanks. Thanks, Ryan, for the question. So, um,

The amount of excess capital from each of the following lenses since we take the binding constraints.

Everybody would recognize that from a regulatory capital perspective that is capital that is there in the legal entities available to be deployed.

Obviously, there is different regulatory frameworks in different legal entities, but degree capital available to be deployed.

So let let me let me so first, let me say that. Yes, we we we this Capital represents real Capital. That is available to be deployed into transactions. Um, in but let me take a step back and remind you, our excess. Capital is really across all 3 Frameworks economic capital Regulatory and raising agency and we really look at what is the biting constraint. So we have at least

So the recognition of these value of in force.

To your point is from a rating agency perspective, I want to remind you that we recognize only a portion of the value of in force for only a portion of our block and even when we do there is a significant haircuts that is applied to that value of in force within the rating agency frameworks.

Jeff Hopson: The recognition of this value of in-force, to your point, is from a rating agency perspective. I want to remind you that we recognize only a portion, the value of in-force for only a portion of our block. Even when we do, there's a significant haircut that is applied to that value of in-force within the rating agency frameworks. That value of in-force does amortize over the life of the business. Over time, we expect to add further to our store of value of in-force by looking at our in-force, the blocks that have not been currently evaluated by the rating agencies, as well as new business.

That amount of excess capital from each of the following lenses, since we take the binding constraints. Um, I think everybody would recognize it from a regulatory capital perspective that is, you know, capital that is there in the legal entities available to be deployed. Um, obviously there's different regulatory frameworks and different legal entities, but the real capital available to be deployed.

Thats value of in force does amortize over the life of the business, but over time, we expect to add further.

Further to our store of value of enforced by looking at our enforce the blocks that have not been current.

Evaluated.

The rating agencies as well as new business.

Um, so the recognition of this value of enforce, um, to your point is from a rating agency perspective. Uh, I want to remind you that we recognize only a portion the value of force, for only a portion of our block. And even when we do, there's a significant haircut that is applied to that value of enforce within the rating agency Frameworks.

And just two points one one item that if you look at our value of in force business margin exit abates in the presentation the growth of that by 16% since over the first nine months of the year shows that there is a robust growth in our store of value of in force and the potential to recognize that capital for.

Jeff Hopson: Just to point to one item, if you look at our value of in-force business margin exhibit in the presentation, the growth of that by 16% over the first nine months of the year shows that there's robust growth in our store of value of in-force and the potential to recognize that capital from a rating agency perspective. Ryan, let me just add one other point. I know you were referring to deployment into the business. With regards to, let's say, potential buybacks, we've indicated how much we're planning to return to shareholders. Just to answer your question, the only criteria we would look at beyond the strategic ones with regards to buyback would be, do we have sufficient liquidity and our leverage ratios? Otherwise, this capital is fully available to buyback. I just want to add to Axel André's comments.

Add further, um, further to our store of value of enforce, by looking at our enforce, the blocks that have not been current, um, evaluated by the rating agencies as well as new business.

A rating agency perspective.

Yeah, Ryan let me just add one other point.

You are referring to deployment into the business.

Yeah.

With regards to let's say potential buybacks, we have indicated.

How much we're going to we are planning to return to shareholders, but just to answer. Your question. There is the only criteria. We would look at beyond the strategic ones with regards to buyback would be do we have sufficient liquidity and leverage ratios otherwise this capital is.

Um and just to point to 1 um, 1 item. If you look at our value of enforced, business margin exhibits in the presentation, the growth of that by 16% since uh, over the first 9 months of the year shows that there's there's a robust growth in our store of uh of value of enforce and and the potential to recognize that capital from a rating agency perspective.

Fully available to buy back so just want to add to <unk> comments.

And our next question today will come from will <unk> with Raymond James. Please go ahead.

Yes.

Hey, good morning regarding the UK mortality assumption review impact.

Those claims that you're seeing today or is it more of a long term expectation for higher mortality.

Ryan. Let me, let me just add 1, another Point. Um, I know you were referring to the deployment into the business. Um, you know, with regards to let's say potential BuyBacks with indicated, you know, how much we're going to return. We're planning to return to shareholders but just to answer your question, there is, yeah, the only criteria we would look at um, beyond the Strategic ones with regards to the buyback would be do we have sufficient liquidity and and our leverage ratios? Otherwise this capital is you know, fully available to buy back. So just want to add add to Axel's comments.

Jeff Hopson: Our next question today will come from Wilma Burdis with Raymond James. Please go ahead. Good morning. Regarding the UK mortality assumption review impact, are those claims that you're seeing today, or is it more of a long-term expectation for higher mortality? Could you also just provide some color on what you're seeing in terms of UK mortality trends? Thanks. Hi, Wilma. This is Jonathan. Thanks for the question. Part of the assumption review this quarter, we've increased our expectation for future UK mortality. That's resulted in an increase in future mortality claims and an offsetting decrease to future longevity claims. This change to assumptions reflects ongoing excess mortality we're seeing in the UK population, which likely reflects challenges with the national health system, as well as a thorough review of recent experience in our own book of business.

And could you also just provide some color on what youre seeing in terms of U K mortality trends. Thanks.

And our next question today will come from Wilma Berdis with Raymond James. Please go ahead.

Yes, Hi, this is Jonathan thanks for the question.

Hey, good morning.

So part of the assumption review this quarter, we've increased our expectation for future U K mortality and that's resulted in an increase in future mortality claims and an offsetting decrease to future longevity claims.

regarding the

So let's change the assumptions reflects ongoing excess mortality, we're seeing in the U K population, which likely reflects challenges with the national health system as well as a thorough review of recent experience in our own book of business.

Mortality assumption review, impact are those claims that you're seeing today or is it more of a long-term expectation for higher mortality? And could you also just provide some color on what you're seeing in terms of UK? Mortality Trends? Thanks.

Under <unk> Jai as Axel mentioned most of this U K mortality impact was recognized in the current period as a strengthening of reserves on cap cohorts and the benefit from the longevity business are deferred and amortized into future periods. So on a net economic basis looking at both mortality and longevity combined and just looking at the U K specifically.

Yeah, hi Wilma. This is Jonathan. Thanks for the question. Um, so part of the Assumption review this quarter, we've increased our expectations for future UK mortality, and that's resulted in an increase in future, mortality claims and an offsetting decrease to Future longevity claims.

So, this changed your assumptions. It reflects the ongoing excess mortality we're seeing in the UK population, which likely reflects challenges with the national health system, as well as a thorough review of recent experience in our own book of business.

Jeff Hopson: Under LDTI, as Axel mentioned, most of this UK mortality impact is recognized in the current period as a strengthening of reserves on cap cohorts, and the benefits on the longevity business are deferred and amortized into future periods. On a net economic basis, looking at both mortality and longevity combined, and just looking at the UK specifically, it's actually pretty neutral. That's given our balanced book of business. There's not much net economic effect of the changes. Thank you. Now the second question, now that the Equitable block is closed, could you provide a little bit more color on your expectation for accounting smoothing on the mortality on that block? Thanks. Sure. Thanks, Wilma. For the Equitable block, there will be accounting smoothing of volatility. We expect roughly about 50% of that block to benefit from that smoothing of results over time.

<unk>.

Pretty neutral so that's given our balanced book of business. There is not much net economic effect of the changes.

Okay. Thank you.

Now with the Ecuador second question now that the equitable block is closed could you provide a little bit more color on your expectation for accounting cooling on the mortality on that block.

Uh, under LDTI, as Axel mentioned, most of this UK mortality impact is recognized in the current period as a strengthening of reserves on cap cohorts. The benefits of the longevity business are deferred and amortized into future periods.

Sure.

Yes, sure Thanks will.

Yes.

So, on a net economic basis, looking at both mortality and longevity combined, and just looking at the UK specifically, it's actually pretty neutral. This is given our balance book of business. There's not much net economic effect of the changes.

For the equitable block.

There is there will be accounting some smoothing of volatility we expect roughly about 50% of that block to be two two benefits from.

That's moving of results over time.

Okay, thank you. Um, now that the Equitable second question now that the Equitable block is closed, could you provide a little bit more color on your expectation for accounting? Smoothing on the mortality on that block? Thanks.

And your next question today will come from Alex Scott with Barclays. Please go ahead.

Hey.

First one I had is just on the group headwind that you guys have had in the medical piece of things can you talk about what you're seeing there that kind of repricing youre, taking and just any further commentary on the trajectory there.

Sure, yeah, sure. Well, thanks, um, yes. So the for the Equitable block, um, there's there, there will be accounting smoothing of volatility. Um, we expect roughly about 50% of that block to be, uh, to to benefit from, uh, that's moving of results over time.

Jeff Hopson: Your next question today will come from Alex Scott with Barclays. Please go ahead. First one I had is just on the group headwind that you guys have had from the medical piece of things. Can you talk about what you're seeing there, the kind of repricing you're taking, and just any further commentary on the trajectory there? Sure. I can start here. Look, on the group side, like we mentioned last quarter, it's short-term business, right? It all gets repriced over the course of a year. As we mentioned, we had started to take repricing actions. By January 1, 2026, by January 2026, all of the block will be repriced. From there on, we have expectations of profitability for all segments of the group business. Got it. Thank you. The second one I have is maybe a little bit more of a pointed question, so apologies in advance.

Sure I can I can start here look on the group side like we mentioned.

And your next question today will come from Alex Scott with Barclays. Please go ahead.

Last quarter, it's short term business right. So it all gets repriced over the course of the year.

And as we mentioned we had started to take repricing actions.

By Jan one 2026 weeks will by Jan 2026.

Hey um first 1 I had is just on the the group headwind that you guys have had from the medical, uh, piece of things. Can you talk about what you're seeing there? They kind of repricing. You're taking and just any further commentary on the trajectory there.

All of the block will be repriced and so from there on it's we have expectations of profitability for for all segments of the group business.

Got it thank you.

The second one I have is maybe a little bit more of a pointed question. So apologies in advance, but you know.

As we kind of go around and talk to industry participants and go to some of the conferences and so forth one of the things that comes up and I think look I think some of the investors are hearing these kind of things too.

Sure, I can, I can start here. Um, look on the group side, like we mentioned, um, last quarter, its short-term business, right? So it all gets repriced over the course of a year. Um, and as we mentioned, you know, we, we had started to take re-pricing actions by by Jan 1 2026, we buy January 2026, um, all of the block will be repriced. And so from there on, it's, uh, you know, we have expectations of profitability for, um, for all segments of the group business.

The.

RGA is getting more competitive getting more aggressive maybe accepting lower IRR as to win business and.

Jeff Hopson: As we kind of go around and talk to industry participants and go to some of the conferences and so forth, one of the things that comes up, and I think some, look, I think some of the investors are hearing these kinds of things too, is that RGA is getting more competitive, getting more aggressive, maybe accepting lower IRRs to win business. I think it's important to kind of hear your retort on it just because it does seem to be something that impacts your stock. I would love to just kind of get your point of view on is that just sort of sour grapes because you guys are winning, or is there more to it? I just want to see what your response is to those kinds of comments that we're hearing. Yeah, Alex, let me take that. Look, there's a lot there.

Alright.

It's important to kind of hear your reward on a just because it does seem to be something that impacts your stock.

Love to just kind of get to your point of view on it.

Is that just sort of sour grapes, because you guys are winning or.

Is there more to it I just wanted to see what your responses to those kind of comments that were here.

Yeah, Alex let me take that look.

There's a lot there firstly.

With regards to risk risk taking risks.

Theres been no change in our risk tolerance.

Risk appetite our processes.

Leaders our culture.

And we probably couldnt change it if we want it and why would we change it has been in huge competitive advantage for us.

Is, is there more to it? I I just want to, you know, see what what your response is to. Those kind of comments that we're hearing.

Yeah, Alex. Let me take.

Um, look.

Jeff Hopson: Firstly, with regards to risk, risk-taking, there's been no change in our risk tolerance, our risk appetite, our processes, our leaders, our culture. We probably couldn't change it if we wanted, and why would we change it? It has been a huge competitive advantage for us over 52 years. You can see it throughout our whole organization. Even our business approach is all around discipline. Why do we just choose and select the business that we want, i.e., the business that is exclusive and plays to our strengths of local offices, our strengths of ability to do biometric and asset risk, our incredibly strong client relationships? It's purely because it is better quality business and, in my mind, less risky than tended business. You see that not only in what we pursue, but also what we don't pursue.

There's a lot there. Um,

52 years.

And you can see it throughout the whole organization like even our business approach is all around discipline why do we choose and select the business that we want I E.

The business that it's exclusive and plays to our strengths of all.

Local offices, our strengths of ability to do biometric and asset risk ALS incredibly strong client relationships, it's purely because it is better quality business and and in my mind less risky than the intended.

<unk> and you say that not only in what we pursue but also what we don't pursue I mean.

<unk> does not come up because we're not participating in many of the recent U S. Tenders for risks that are just not in our sweet spot number one debt tender like I said, we believe very much pursue exclusive transactions and number two.

They're not in our sweet spot, they're not the risks we liked.

Jeff Hopson: I mean, our name does not come up because we're not participating in many of the recent U.S. tenders for risks that are just not in our sweet spot. Number one, they're tenders. Like I said, we very much pursue exclusive transactions. Number two, they're not in our sweet spot. They're not the risks we like. Look, this has always been our approach. It will continue to be our approach. When I heard commentary like you suggested, it just took me back to the Asian days where, when we started Success 20 years ago, of course, you're going to hear these things. That's what one would expect. We just follow our strategy, follow our culture. It hasn't changed. We're so excited about our future growth and our future returns that we can provide to shareholders. The next question will come from Suneet Kamath with Jefferies. Please go ahead. Great.

You know, with regards to risk risk-taking risk, you know, there's that there's been no change in our risk tolerance. You know our risk appetite, our processes, our, our leaders, our culture. Um, you know, and and we probably couldn't change it if we want it. And why would we change it? It is been a huge competitive Advantage for us, you know, the 52 years. Um so you know and you can see it throughout the whole organization like even our business approach is all around discipline. Why do we choose choose and select the business that we want?

Look.

This is always been our approach it will continue to be our approach.

When I heard commentary like you suggested just took me back to the Asian days, where when we started success 20 years ago of course, Youre going to hear these things.

That's what one would expect we just follow our strategy follow our culture Hasnt changed.

And we're so excited about our future growth and our future.

Returns that we can provide to shareholders.

The next question will come from Smedes come out with Jefferies. Please go ahead.

Alright, thank you.

So if I think back to when we started talking about <unk> I think the commentary was this was supposed to be a benefit to RGA because of the smoothing and if I just look at recent results. It just doesn't seem like that's playing out youre getting more of the bad and the good and I was just curious is this just because theres a larger.

Name does not come up because we're not participating in many of the recent, uh, U.S. tenders for risks that are just not in our sweet spot. Number one, they're tenders. Like I said, we very much pursue exclusive transactions. And number two, um, they're not in our sweet spot. They're not the risk we like. So, look, you know, this has always been our approach. It will continue to be our approach. You know, when I heard commentary like you suggested, it just took me back to the Asian days. You know, where, uh, when we started success 20 years ago, of course, you're going to hear these things. Um, that's what I would expect. We just follow our strategy, follow our culture; it hasn't changed. Um, and we're so excited about our future growth and our future, uh, returns that we can, you know, provide to shareholders.

Jeff Hopson: Thank you. If I think back to when we started talking about LDTI, I think the commentary was this was supposed to be a benefit to Reinsurance Group of America because of the smoothing. If I just look at recent results, it just doesn't seem like that's playing out. You're getting more of the bad than the good. I was just curious, is this just because there's a larger portion of your block that's in capped cohorts, and that's what's causing it? Can you give us a sense of what percentage of your business is capped versus uncapped? I just don't think we're seeing the smoothing that we expected when we first started to talk about this. Sure. Thanks for the question. Look, I think we still believe that LDTI is a benefit in terms of smoothing results over time. That may not play out quarter by quarter exactly.

The next question will come from Sunni Kamath with Jeff. Please go ahead.

A portion of your block that's in cap cohorts and Thats whats, causing it or can you give us a sense of what percentage of your business is capped versus uncapped because I. Just don't think we're seeing the smoothing that we expected when we first event to talk about this.

Sure. Thanks for the question.

I think I think we still believe that El DTI is.

It is a benefit in terms of smoothing results over time.

No Thats may not play out quarter by quarter exactly I think if you look at the presentation in the recent quarters or if you look at older presentations that have a longer longer track record youll see that in general the.

Great. Thank you. Um, so if I think back to when we started talking about ldti, I I think the commentary was this was supposed to be a benefit to RGA because of the smoothing and and if I just look at recent results, it just doesn't seem like that's playing out. You're, you're getting more of the bad than the good and I was just curious is this just because there's a larger portion of your block that's in cap cohorts and that's what's causing it or can you give us a sense of what percentage of your business is captive versus uncapped? Because I just don't think we're seeing the smoothing that we expected when we first started to talk about that.

The impact to that cooked it comes through on an accounting basis is less than the than the economic. So there is theres. Some theres some level of smoothing and some reduction of the noise there.

Jeff Hopson: If you look at the presentation in the recent quarters, or if you look at older presentations that have a longer track record, you'll see that, in general, the impact that comes through on an accounting basis is less than the economic. There's some level of smoothing and some reduction of the noise there. Nonetheless, you're correct that for those capped cohorts, the results flow through immediately. Capped cohorts, over time, you would expect that over time, there will be some portion of cohorts that are capped. That will result, therefore, in a bit more volatility on the negative side. Yeah. Suneet, just to give you a number to size it for you, for our traditional business in total across the world, about 15% of our business is in capped cohorts. Got it. Okay. That's helpful. Suneet, just let me add one more point.

Nonetheless, you're correct that when for those caps cohorts are the results flow through immediately in <unk>.

GAAP cohorts over time, you would expect that over time, there will be some portion of cohorts that are capped.

And that will result, therefore in a bit more volatility on the negative side.

Yeah, and then just.

Just to give you a number to size it for you for our traditional business in total across the world about 15% of our business is in capped cohorts.

Got it okay maybe helpful.

Sure, thanks for the question. Um, we got, I think I think we still believe that ldti, um, is, uh, you know, is a benefit in terms of smoothing results over time. Um, now that may not play out quarter by quarter. Exactly. I think, if you look at the presentation in the the, you know, recent quarters, or if you look at at older presentations that have a longer longer track record, you'll see that in general, the impact that that comes through on an accounting basis is is less than the, um, than the economic. So there's there's some, there's some level of smoothing and some reduction of the noise there. Um, now, nonetheless, you correct that when for those capped cohorts, uh, the results flow through, um, immediately and, and um, and GAP cohorts, you know, over time you would expect that over time. There will be some portion of of cohorts that are capped.

So just let me add one more point I mean look these cap cohorts.

And that will result, therefore, in a bit more volatility on the negative side.

To us.

Like I said earlier on the risk management is our DNA.

Critical path.

And therefore these cap cohorts, obviously blocks, we monitor very closely and our first whole ground fault.

Yeah and then uh so you just just to give you a number to size it for you for our traditional business and total the world about 15% of our businesses in cap cohorts.

Got it, okay.

The in force actions that you see.

Jeff Hopson: These capped cohorts, like I said earlier, risk management is our DNA, our critical part. Therefore, these capped cohorts, obviously, blocks we monitor very closely and are fertile ground for the in-force actions that you see us doing. That's, as I said earlier, an integral part of our way of generating. Further profit and ROE. Yeah, that makes sense. My second question is on the economic solvency regime in Japan. As I think about over the past couple of quarters, I think you guys have talked about that as an opportunity. We're a couple of quarters away from it actually being implemented. Has it turned out to be the opportunity that you thought it was, or were companies able to figure out solutions that didn't require RGA's capabilities? Just curious where we sit there. Yeah, no, thanks, Suneet.

Doing and.

It's an it. Just let me add 1 1 more point. I mean, look, these cap cohorts.

And that's as I said earlier, an integral part of our way of generating.

The profit and ROE.

Yeah, no that makes sense and then I guess my second question is on the economic solvency in Japan.

To us. Um, like I said earlier, look risk management is is is our DNA our, our critical part um and therefore you know these cap cohorts obviously blocks we monitor very closely and a fertile ground for

About over the past couple of quarters I think you guys have talked about that as an opportunity.

But where I guess, a couple of quarters away from actually being implemented and I guess.

As it turned out to be the opportunity that you thought it was or where companies able to figure out solutions that didn't require rga's capabilities, just curious kind of where we sit there.

The enforce actions that you see us um, doing um and and that's as I said earlier, an integral part of our way of of of of um generating you know, further profit and and Roe.

Yeah, no. Thanks, Nate look I will.

I'd say the first inklings of it driving opportunities, there's probably about five or six years ago.

Yeah, no. That that makes sense. And then I guess my second question is on the economic solvency in Japan. You know, is I think about over the past couple quarters, you know. I think you guys have talked about that as as an opportunity. Um, but we're I guess a couple of quarters away from it actually being implemented and I guess

It's not just switched the light on and it becomes relevant I mean, the companies have been preparing for this for.

Capabilities. Just curious kind of where we sit there.

Number of years and as a result, we've been able to win good business and I'd say, it's it's been the essential part of why you are seeing increased activity in Japan on on co insurance.

Jeff Hopson: Look, I would say the first inklings of it driving opportunities was probably about five or six years ago. It's not just switched a light on and it becomes relevant. The companies have been preparing for this for a number of years. As a result, we've been able to win good business. I'd say it's been the essential part of why you're seeing increased activity in Japan.

Blocks.

Al I mean, we are partners in the market of both obviously the local companies as well as some of the multinational global companies.

So there could be other tools available for some of the global companies. They may have internal reinsurers and and so on but for US It has been a driver of opportunity.

Operator: Coinsurance of blocks, you know, our partners in the market are both, obviously, the local companies, as well as some of the multinationals or global companies. There could be other tools available for some of the global companies. They may have internal reinsurers and so on. For us, it has been a driver of opportunity. It continues to be. We're very selective, once again, on what we pursue, which will predominantly be those blocks of businesses that have both biometric as well as asset risk, as well as, you know, usually it's going to be with longstanding clients that we may have had decades-long relationships with on the biometric risk side.

It continues to be well.

Very selective once again on what we pursue which will predominantly be those blocks of businesses that.

Both biometric as well as asset risk as.

As well as.

Usually it's gonna be with long standing clients that we might have had decades long relationships with on the biometric risk side.

Yeah, no, thanks Nate. Look. I would say it, it, it, you know, the first inklings of it, driving opportunities was probably about 5 or 6 years ago. So it's not just switched a light on, and it becomes relevant. I mean, the companies have been preparing for this for a number of years and as a result we've been able to win good business. And I'd say it's it's been the essential part of why you're seeing increased activity in Japan on on Co Insurance, you know, of of of of blocks, um you you you know our I mean we our our partners in the market are both obviously the local companies as well as some of the multinationals or global companies. Um, so there could be other tools available for some of the the global companies they may have internal reinsurers and and so on. But you know for us it has been a driver of of opportunity. Um, it continues to be um we're very selective once again on

Our last question of the day comes from Tom Gallagher with Evercore. Please go ahead.

Good morning.

If I look at the earnings power in the quarter and I adjust for we'll call. It the accounting noise in the cap versus uncapped cohort I sort of unwind that forget.

What we pursue, uh, which will predominantly be, uh, those blocks of businesses that have both, you know, biometric as well as asset risk. Um, as well as, you know, usually it's going to be with long-standing clients that we may have had decades-long relationships with on the biometric risk side.

[Company Representative]: Our last question of the day comes from Tom Gallagher with Evercore. Please go ahead.

You had about $7 of earnings power in the quarter.

Our last question of the day comes from Tom Gallagher with evercore, please go ahead.

Jeff Hopson: Good morning. If I look at the earnings power in the quarter and I adjust for, we'll call it the accounting noise in the cap versus uncapped cohort, I sort of unwind that. You get about $7 of earnings power in the quarter. That seems well above the kind of levels that you guys have guided to if I think about glide path. I'm assuming there was significant over-earnings in some of the segments versus what you think is trendable. Can you help kind of unpack $7 and maybe get us back to a more reasonable trend line? 'Cause that does seem quite high.

It seems well above.

The kind of levels that you guys have guided to if I think about glide path now I'm, assuming there was like significant over earnings and some of the segments versus what you think is trend at all but can you can you help kind of unpack $7 and maybe getting us back to a more reasonable trend line because that does seem.

Good morning. If if I, if I look at the earnings power in the quarter,

Quite high.

Sure. Thanks for the question Tom.

Yes, so when we think of kind of what are the pieces in the in the earnings this quarter.

I think we talked we mentioned the claims experience.

So overall about $50 million and then the offsetting impact of in force actions, which across the globe.

Axel André: Sure. Thanks for the question, Tom. Yes. When we think of kind of what are the pieces in the earnings this quarter, I think we talked, we mentioned the claims experience, so overall about $50 million, and then the offsetting impact of in-force management actions, which across the globe, in the quarter, it's about $40 million. So $40 million of positive to offset some of that $50 million negative. We mentioned the VII, which is a headwind of about $40 million this quarter. On the tax side, we had a benefit. This was a really good quarter. We're very, very pleased. I think a lot of the result is capital deployment, of earnings coming up, coming online. We've talked about the ramp-up of earnings as we do the portfolio repositioning.

And I adjust for, we'll call it the accounting noise in the uh cap versus uncap cohort. I I sort of uh unwind that to get about 7 dollars of earnings power in the quarter. Now, that seems well above, um, the kind of levels that you guys have got it to if I think about Glide path. Now, I'm assuming there was like significant over earnings in some of the segments versus what you think is trendable. But can you, can you help kind of unpack, 7 dollars and maybe getting us back to a more reasonable trend line, because that does seem quite High.

In the quarter, it's about $40 million, so $40 million of positive to offset some of that 15 negative.

Sure. Thanks for the question, Tom.

We mentioned the VII.

As.

A headwind of about $40 million this quarter and then on the tax side, we had a we had a benefit so.

So yes. This was a really good quarter, we're very very pleased I think a lot of the a lot of the result of capital deployment.

Earnings coming up coming online we've talked about is kind of the ramp up of earnings with as we do the portfolio repositioning obviously we had.

Yes. So when we think of kind of what are the pieces in the in the earnings this quarter, uh, so I think we talked, we mentioned the claims experience um through overall about 15 million dollars. And then the offsetting impact of enforce actions which across the globe um in the quarter is about 14 million dollars. So $40 million of positive to offset some of that 15 negative. Um,

Equitable to transaction, which is one example of that capital deployment, but it's a lumpy one and it came in this quarter, it's very tangible.

So you look things are clicking well and so we're very excited about the earnings growth.

Trajectory from here on.

Axel André: Obviously, we had Equitable, the transaction, which is one example of that capital deployment, but it's a lumpy one, and it came in this quarter. It's very tangible. Things are clicking well. We're very excited about the earnings growth trajectory from here on.

And Tom Let me just add a couple of points.

We always say and as you know it you know.

One quarter's results.

Just one quarter's results.

If you do a similar analysis for the year, we've had an excellent quarter. That's why we described it that way and so the year to date, we're having very strong year to date relative to expectations. So I'd encourage you to just maybe look back over the three quarters, it's probably a better gauge of Av.

Operator: Yeah. Tom, let me just add a couple of points. As we always say, and as you know, one quarter's results is just one quarter's results. If you do a similar analysis for the year, we've had an excellent quarter. That's why we describe it that way. For the year to date, we're having a very strong year to date, relative to expectation. I'd encourage you to just maybe look back over the three quarters. It's probably a better gauge of where we're at in terms of sustainable earnings power for '25.

Where we're at in terms of sustainable earnings power for the 425.

Good good point Tony the.

We mentioned the the VII, uh, which is, um, you know, a, a headwind of about 40 million dollars, this quarter. And then on the tax side we had a, we had a benefit. So yeah, this was a really good quarter. Uh, we're very, very pleased. I think a lot of the, a lot of the result of capital deployment of, um, of earnings coming up coming online. We've talked about, kind of the, the ramp up of earnings. With, as we do the portfolio, repositioning obviously we had um, Equitable the transaction, you know, which is 1 example of that Capital deployment. But it's, it's a lumpy 1 and it came in this quarter. It's very tangible. Um, so yeah, look things are clicking well and and so we're we're very excited about the the earnings growth, um, trajectory from here on. Yeah. And so Tom, let me just add a couple of points, you know, as we always say and as you know, you know, 1 quarter as a result is just 1 quarter as a result. So uh, if you do a similar analysis for the year, you know, we've had an excellent quarter, that's why we describe it that way.

My follow up is on <unk>.

Have you considered any partnerships with alternative managers, we've seen multiple.

Primary life companies enter into these partnerships.

And for the year today we're having a very strong year to date, you know, relative to expectations. So I'd encourage you to just maybe look back over the 3 quarters. It's probably a better gauge of of of, you know, where we're at, in terms of our sustainable, you know, earnings power for for for 25.

Jeff Hopson: Good point, Tony. My follow-up is on, have you considered any partnerships with alternative managers? We've seen multiple primary life companies enter into these partnerships. I guess what I wonder is with the asset-intensive business, kind of a critical part of your growth, I wonder, and with a lot of the competitors for those types of deals seemingly having, we'll call it pretty enhanced alternative strategies, whether it's private credit or other things, is that something that you'd consider?

And I guess, what I wonder is with the asset intensive business.

Kind of a critical part of your growth.

I wonder and with a lot of the competitors for those types of deals seemingly having yes, we'll call it pretty enhanced alternative strategies, whether it's private credit or or other things.

Uh good good point Tony. The um my follow-up is on. Have you considered any Partnerships with alternative managers? You know, we've seen multiple

Uh, primary life companies enter into these partnerships.

Is that something that you'd consider.

And I guess what I wonder is, with the acid-intensive business...

Yeah.

Thanks for the question, Tom look I'd say, a few things one is.

With regards to private assets obviously.

The bulk of it still internally, but we do have a number of external relationships, where we feel doesn't make sense for us to build build the capabilities or they've got scale.

Axel André: Yeah, thanks for the question, Tom. Look, I'd say a few things. One is, with regards to private assets, obviously, we do the bulk of it still internally, but we do have a number of external relationships where, you know, we feel it doesn't make sense for us to build the capabilities or they've got, you know, scale that, you know, we would not be able to achieve. That's the fundamental principle in which we've been operating. I really want to center you towards we don't compete on pure asset transactions. That is not our sweet spot, you know? To be honest, there's no point us really bidding too much on those types of blocks because we know our price probably will not be competitive.

uh kind of a critical part of your growth. Uh I wonder and and with you know a lot of the competitors for those types of deals seemingly having you know we'll call it pretty enhanced alternative strategies whether it's private credit or or other things is that is that something that you'd consider?

Yeah.

We would not be able to achieve so that's the fundamental principle in which.

Operating but I really want to send to you towards we don't compete on pure asset transactions that is not our sweet spot and to be honest. There is no point us really bidding too much on those types of blocks, because we know how prices probably will not be competitive. So that's why we always turn back to what have we done.

That asset transaction have material biometric risk, which obviously is our very much our sweet spot is a leveraged off relationships that we have maybe had for decades.

I really want to send that thought yes, we do.

The material asset.

Axel André: That's why we always turn back to does that asset transaction have material biometric risk, which obviously is very much our sweet spot, is a leverage of relationships that we've maybe had for decades. I really want to center that thought. Yes, we do material asset reinsurance or asset-intensive reinsurance, but it always comes with biometric. A lot of the blocks, as I shared in my comments, are smaller in nature. They're more modest in nature. They're not always the headline-grabbing ones, because the ones that rely on those relationships and those partnerships, we're just servicing that client that's asked us to help them for many, many, many years, and we continue to do that.

Reinsurance all asset intensive reinsurance, but it always comes with biometric and and and a lot of the blocks as I shared in my comments off of smaller in nature than not are more modest in nature. They are not always the headline grabbing ones.

Because the ones that rely on those relationships and those partnerships.

Just servicing that client.

Asked us to help them for many many many years and we continue to do that.

Still in internally. But we do have a number of external relationships where, you know, we feel it doesn't make sense for us to build build the capabilities or they've got, you know, scale, um, that, you know, we would not be able to achieve. So that's the fundamental principle in which, you know, we've been operating but I I really want to send you towards. We don't compete on pure asset transactions that is not our sweet spot, you know. And to be honest there's no point us really bidding too much on those types of blocks because we know our price probably will not be competitive. So that's why we always turn back to what have we does that asset transaction have material biometric risk, which obviously is our very much. Our sweet spot is a leveraged of relationships that we maybe had for decades and so I really want to Center that thought. Yes, we do, you know, the material asset, um, reinsurance or asset intensive reinsurance, but it always comes with biometric and and and a lot of the blocks as I shared in my cam.

This concludes our question and answer session I would like to turn the conference back over to Tony Chang for any closing remarks.

Well. Thank you for your questions and your continued interest in RGA, our strong quarter and continued growth and long term value continues to fuel future growth and returns for RJ and this ends today's call. Thank you.

Comments on smaller in nature, uh, they're not, or more modest in nature. They're not always the headline-grabbing ones, um, because the ones that rely on those relationships and those partnerships, you know, we're just servicing that client that's asked us to help them for many, many, many years. And we continue to do that.

[Company Representative]: This concludes our question and answer session. I would like to turn the conference back over to Tony Cheng for any closing remarks.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: Thank you for your questions and your continued interest in RGA. Our strong quarter and continued growth in long-term value continues to fuel future growth and returns for RGA. This ends today's call. Thank you.

This concludes our question and answer session. I would like to turn the conference back over to Tony Cheng for any closing remarks.

Well, thank you for your question.

And your continued interest in RGA, our strong quarter and continued growth in long-term value, continues to fuel future growth and returns for RJ. And this ends today's call. Thank you.

[Company Representative]: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.