Quick Facts / Company Snapshot
- Company Name: Reinsurance Group of America, Incorporated
- Headquarters: 16600 Swingley Ridge Road, Chesterfield, Missouri 63017
- Founded: December 31, 1992
- Stock Symbol: RGA (New York Stock Exchange)
- Total Assets (2024): $118.7 billion
- Total Equity (2024): $10.9 billion
- Life Reinsurance In Force (2024): $3.9 trillion
- Total Revenues (2024): $22.1 billion
- Net Premiums (2024): $17.8 billion
- Net Income Available to Shareholders (2024): $717 million
- Diluted Earnings Per Share (2024): $10.73
- Employees: Approximately 4,100
- Global Presence: U.S., Latin America, Canada, Europe, Middle East, Africa, Asia, Australia
- Primary Business: Traditional Life and Health Reinsurance, Financial Solutions
- Credit Rating (S&P): A (Senior Debt)
- Insurer Financial Strength Rating (S&P): AA- (Very Strong)
- Dividend Per Share (2024): $3.48
- Share Repurchase Authorization: Up to $500 million (as of Jan 2024)
- Shares Outstanding: 66,024,444 (as of Jan 31, 2025)
- Fiscal Year End: December 31
Company Overview
Reinsurance Group of America, Incorporated (RGA) stands as a premier global provider of traditional life and health reinsurance and financial solutions. Formed on December 31, 1992, RGA serves as an insurance holding company, operating through a vast network of subsidiaries across the United States, Latin America, Canada, Europe, the Middle East, Africa (EMEA), and the Asia Pacific region. As of December 31, 2024, the company held $118.7 billion in total assets and maintained $3.9 trillion of life reinsurance in force.
The core of RGA’s business model is reinsurance, an arrangement where RGA (the reinsurer) agrees to indemnify another insurance company (the ceding company) for all or a portion of the insurance and/or investment risks underwritten by the ceding company. This structure is designed to reduce the net amount at risk for client companies, enhance their financial strength and surplus position, stabilize operating results by leveling fluctuations in loss experience, and assist in meeting regulatory requirements.
RGA is acknowledged as the largest global life and health reinsurer in the world based on 2023 life and health reinsurance revenues. The company’s operations are segmented geographically and by business line, focusing on Traditional Reinsurance—which includes individual and group life, health, disability, and critical illness—and Financial Solutions, which encompasses longevity reinsurance, asset-intensive products, and capital solutions.
Business Segments
RGA manages its operations through geographic-based and business-based segments. Each geographic segment is further divided into Traditional and Financial Solutions businesses.
1. U.S. and Latin America
This is the largest segment by revenue. It markets traditional life and health reinsurance, reinsurance of asset-intensive products, financial reinsurance, and other capital-motivated solutions primarily to U.S. life insurance companies.
- Total Segment Revenue (2024): $12.92 billion
- Percentage of Total Segment Revenue: ~56.7%
- Adjusted Operating Income (2024): $851 million
Operational Scope:
- Traditional: Provides individual and group life and health reinsurance, including long-term care. Business is written on both facultative and automatic treaty bases.
- Financial Solutions: Concentrates on Asset-Intensive reinsurance (annuities, corporate-owned life insurance) and Capital Solutions (financial reinsurance to assist clients with regulatory requirements).
2. Asia Pacific
This segment serves clients through subsidiaries, licensed branch offices, and representative offices throughout Asia and Australia.
- Total Segment Revenue (2024): $4.25 billion
- Percentage of Total Segment Revenue: ~18.7%
- Adjusted Operating Income (2024): $537 million
Operational Scope:
- Traditional: Includes individual and group life and health, critical illness, disability, and superannuation (Australian retirement savings program).
- Financial Solutions: Includes financial reinsurance, asset-intensive products, and certain disability and life blocks containing material investment risks.
3. Europe, Middle East, and Africa (EMEA)
Operates from offices primarily in the UK, Continental Europe, South Africa, and the UAE.
- Total Segment Revenue (2024): $3.14 billion
- Percentage of Total Segment Revenue: ~13.8%
- Adjusted Operating Income (2024): $375 million
Operational Scope:
- Traditional: Principal types include individual and group life and health, critical illness, disability, and underwritten annuities.
- Financial Solutions: Includes longevity reinsurance (closed block annuity reinsurance and longevity swaps), asset-intensive business, and financial reinsurance.
4. Canada
Operates primarily through RGA Life Reinsurance Company of Canada.
- Total Segment Revenue (2024): $1.89 billion
- Percentage of Total Segment Revenue: ~8.3%
- Adjusted Operating Income (2024): $160 million
Operational Scope:
- Traditional: Engaged in individual life reinsurance, creditor insurance, group life and health, critical illness, and disability reinsurance.
- Financial Solutions: Concentrates on investment and longevity risk within underlying annuities and investment-oriented products.
5. Corporate and Other
Includes investment income from unallocated invested assets, investment-related gains and losses, and service fees. It also houses results from wholly-owned subsidiaries that develop technology and provide consulting solutions.
- Total Segment Revenue (2024): $587 million
- Percentage of Total Segment Revenue: ~2.6%
- Adjusted Operating Loss (2024): $(171) million
History and Evolution
Reinsurance Group of America, Incorporated was formed on December 31, 1992. Since its inception, the company has grown from a domestic reinsurer into a leading global provider.
- 1992: Formation of RGA as an insurance holding company.
- Growth Trajectory: The company expanded its underwriting expertise and industry knowledge to enter international markets, establishing locations in Canada, Asia Pacific, Europe, the Middle East, Africa, and Latin America.
- 2024 Milestone: By the end of 2024, RGA reported $3.9 trillion of life reinsurance in force and $118.7 billion in assets.
RGA has consistently developed capacity in longevity risks, asset-intensive products, and financial reinsurance, evolving beyond traditional mortality risk to become a comprehensive financial solutions partner for insurers.
Products and Services
RGA’s offering is split into two primary categories: Traditional Reinsurance and Financial Solutions.
Traditional Reinsurance
- Life Reinsurance: Reinsurance of individual or group-issued term, whole life, universal life, and joint and last survivor insurance policies.
- Health and Disability Reinsurance: Reinsurance of individual or group health policies and income replacement benefits in the event of disability.
- Long-Term Care: Benefits for persons unable to perform activities of daily living.
- Critical Illness: Benefits upon diagnosis of pre-defined critical illnesses.
- Creditor Insurance: Covers outstanding balances on loans in events of death or disability.
Revenue Profile (2024 Net Premiums):
- U.S. & Latin America Traditional: $7.50 billion
- Canada Traditional: $1.29 billion
- EMEA Traditional: $2.00 billion
- Asia Pacific Traditional: $3.01 billion
Financial Solutions
- Asset-Intensive Reinsurance: Transactions with significant investment components, such as fixed deferred annuities, immediate payouts, and corporate-owned life insurance. RGA manages investment risk to generate spread income.
- Longevity Reinsurance: Assumption of longevity risk for pension plans and annuity products, protecting clients against the risk of people living longer than expected.
- Capital Solutions: Financial reinsurance and fee-based transactions to assist ceding companies in meeting regulatory requirements and enhancing capital efficiency.
- Stable Value Products: Guaranteed investment contracts for retirement plans.
- Pension Risk Transfer (PRT): Lump sum transactions to assume pension liabilities.
Revenue Profile (2024 Net Premiums):
- U.S. & Latin America Financial Solutions: $2.99 billion
- Canada Financial Solutions: $166 million
- EMEA Financial Solutions: $660 million
- Asia Pacific Financial Solutions: $224 million
Brand Portfolio
RGA operates primarily under the master brand Reinsurance Group of America and RGA. Its operating entities function as extensions of this brand in their respective regulatory jurisdictions.
Key Operating Entities (Brands):
- RGA Reinsurance Company: The primary U.S. operating subsidiary.
- RGA Life Reinsurance Company of Canada: The primary Canadian operating subsidiary.
- RGA Global Reinsurance Company, Ltd. (Bermuda)
- RGA International Reinsurance Company dac (Ireland)
- RGA Reinsurance Company of Australia Limited
- RGA Americas Reinsurance Company, Ltd.
- Aurora National Life Assurance Company
These entities allow RGA to leverage its strong credit ratings—such as AA- from S&P for its core operating subsidiaries—to provide security to clients globally.
Geographical Presence
RGA maintains a physical footprint in major financial hubs across the globe.
Region Breakdown
1. United States & Latin America
- Headquarters: Chesterfield, Missouri.
- Operations: Serves U.S. and Latin American clients. The U.S. entity, RGA Reinsurance Company, is the primary subsidiary subject to Regulation XXX.
- Revenue Contribution (2024): $12.92 billion (Total Segment Revenue)
2. Canada
- Offices: Montreal and Toronto.
- Operations: RGA Canada employs its own underwriting, actuarial, and claims staff.
- Revenue Contribution (2024): $1.89 billion (Total Segment Revenue)
3. Europe, Middle East, and Africa (EMEA)
- Key Locations: United Kingdom, Continental Europe, South Africa, United Arab Emirates (UAE).
- Operations: Provides full reinsurance services with local underwriting and actuarial support.
- Revenue Contribution (2024): $3.14 billion (Total Segment Revenue)
4. Asia Pacific
- Key Locations: Australia, Hong Kong, Japan, and other Asian markets.
- Operations: Regional team based in Hong Kong supports Asian offices. RGA Australia employs its own full-service staff.
- Revenue Contribution (2024): $4.25 billion (Total Segment Revenue)
Financial Performance Analysis
RGA demonstrated robust financial growth in 2024 compared to previous years, driven by new business production and strong investment performance.
Consolidated Performance Trend
| Metric | 2024 | 2023 | 2022 |
| Total Revenues | $22.1 billion | $18.6 billion | $16.2 billion |
| Net Premiums | $17.8 billion | $15.1 billion | $13.1 billion |
| Net Investment Income | $4.4 billion | $3.6 billion | $3.2 billion |
| Net Income | $724 million | $909 million | $521 million |
| Diluted EPS | $10.73 | $13.44 | $7.64 |
- Revenue Growth: Total revenues increased by $3.5 billion in 2024, largely due to a $2.8 billion increase in net premiums and an $825 million increase in net investment income.
- Net Income Variance: Net income decreased in 2024 compared to 2023, primarily due to non-economic losses on PRT transactions, investment portfolio repositioning losses, and actuarial assumption updates.
Profit and Loss Analysis
2024 Statement of Income Highlights
Revenues:
- Net Premiums: $17,843 million
- Net Investment Income: $4,416 million
- Investment Related Gains (Losses): $(745) million
- Other Revenues: $593 million
- Total Revenues: $22,107 million
Benefits and Expenses:
- Claims and Other Policy Benefits: $16,903 million
- Interest Credited: $1,087 million
- Policy Acquisition Costs & Other Insurance Expenses: $1,641 million
- Other Operating Expenses: $1,268 million
- Interest Expense: $304 million
- Total Benefits and Expenses: $21,127 million
Income:
- Income Before Income Taxes: $980 million
- Provision for Income Taxes: $256 million
- Net Income: $724 million
- Net Income Available to Shareholders: $717 million
Ratios:
- Effective Tax Rate: 26.3%
- Net Margin (Net Income/Total Revenue): ~3.3%
Balance Sheet Analysis
As of December 31, 2024, RGA’s balance sheet reflects significant scale and financial strength.
Assets
- Total Assets: $118.7 billion (up from $97.6 billion in 2023).
- Investments: $98.0 billion.
- Fixed Maturity Securities: $77.6 billion.
- Mortgage Loans: $8.8 billion.
- Funds Withheld at Interest: $5.4 billion.
- Cash and Cash Equivalents: $3.3 billion.
- Deferred Policy Acquisition Costs: $5.5 billion.
Liabilities
- Total Liabilities: $107.8 billion.
- Future Policy Benefits: $53.4 billion.
- Interest-Sensitive Contract Liabilities: $35.1 billion.
- Funds Withheld Payable: $5.0 billion.
- Long-Term Debt: $5.0 billion.
Equity
- Total Equity: $10.9 billion.
- Retained Earnings: $9.3 billion.
- Treasury Stock: $(1.9) billion.
- Accumulated Other Comprehensive Income: $849 million.
Cash Flow Analysis
Operating Activities
- Net Cash Provided by Operating Activities (2024):$9.37 billion.
- This was a significant increase from $4.04 billion in 2023, driven by changes in future policy benefits and operating assets/liabilities.
Investing Activities
- Net Cash Used in Investing Activities (2024):$(12.55) billion.
- Purchases of Fixed Maturity Securities: $(40.66) billion.
- Sales of Fixed Maturity Securities: $28.15 billion.
- Cash Invested in Mortgage Loans: $(1.28) billion.
Financing Activities
- Net Cash Provided by Financing Activities (2024):$3.66 billion.
- Deposits on Investment-type Contracts: $7.58 billion.
- Withdrawals on Investment-type Contracts: $(4.73) billion.
- Dividends to Stockholders: $(229) million.
Board of Directors and Leadership Team
Executive Leadership
- Tony Cheng: President & Chief Executive Officer.
- Axel André: Executive Vice President & Chief Financial Officer.
- Ray Kleeman: Executive Vice President, Chief Human Resources Officer.
- Arthur Ozeki: Executive Vice President, Head of Asia Pacific.
Board of Directors
- Stephen T. O’Hearn: Chair of the Board.
- Tony Cheng: Director.
- Pina Albo: Director.
- Michele M. Bang: Director.
- John J. Gauthier: Director.
- Patricia L. Guinn: Director.
- Hazel M. McNeilage: Director.
- George Nichols III: Director.
- Alison Rand: Director.
- Shundrawn Thomas: Director.
- Khanh T. Tran: Director.
- Steven C. Van Wyk: Director.
Board Committees:
- Audit Committee
- Human Capital & Compensation Committee
- Investment Committee
- Nominating & Governance Committee
- Risk Committee
- Cybersecurity & Technology Committee
Subsidiaries, Associates, Joint Ventures
RGA operates through a network of wholly-owned subsidiaries.
Key Subsidiaries :
- RGA Reinsurance Company (Missouri): Primary U.S. operating entity.
- RGA Life Reinsurance Company of Canada (Canada)
- RGA Americas Reinsurance Company, Ltd. (Bermuda)
- RGA International Reinsurance Company dac (Ireland)
- RGA Reinsurance Company of Australia Limited (Australia)
- Aurora National Life Assurance Company (Missouri)
- RGA Reinsurance Company (Barbados) Ltd. (Barbados)
- RGA Global Reinsurance Company, Ltd. (Bermuda)
- RGA Worldwide Reinsurance Company, Ltd. (Barbados)
- Omnilife Insurance Company Limited (United Kingdom)
- Hodge Life Assurance Company Limited (United Kingdom)
- Rockwood Reinsurance Company (Missouri)
- Chesterfield Reinsurance Company (Missouri)
Physical Properties
RGA’s physical footprint supports its global operations through a mix of owned and leased properties.
- Global Headquarters: 16600 Swingley Ridge Road, Chesterfield, Missouri. This is an owned site.
- Leased Offices: The company leases office space in various locations globally to support its segments in Canada, Europe, Asia, and Australia.
- Condition: Management believes existing facilities are in good operating condition and suitable for the conduct of business.
Segment-wise Performance
1. U.S. and Latin America
- Financials (2024):
- Revenues: $12.9 billion.
- Adjusted Operating Income: $851 million.
- Performance Drivers:
- Traditional: Benefited from management in-force actions (rate increases, recaptures) and new transactions.
- Financial Solutions: Saw lower contributions from new business compared to the prior year but maintained a strong asset base of $22.0 billion.
2. Canada
- Financials (2024):
- Revenues: $1.89 billion.
- Adjusted Operating Income: $160 million.
- Performance Drivers:
- Traditional: Favorable experience on group business and gains from future policy benefits remeasurement.
- Financial Solutions: Adjusted operating income decreased due to a large one-time gain in the prior year (2023), but net premiums increased due to new transactions.
3. EMEA
- Financials (2024):
- Revenues: $3.14 billion.
- Adjusted Operating Income: $375 million.
- Performance Drivers:
- Traditional: Improvement in mortality experience, particularly in the UK and South Africa.
- Financial Solutions: Decrease in adjusted operating income due to remeasurement losses, though net premiums grew due to closed longevity block transactions.
4. Asia Pacific
- Financials (2024):
- Revenues: $4.25 billion.
- Adjusted Operating Income: $537 million.
- Performance Drivers:
- Traditional: Adjusted operating income decreased due to unfavorable mortality/morbidity assumption updates.
- Financial Solutions: Adjusted operating income increased to $255 million, driven by new business growth and a $7.3 billion increase in the invested asset base from new asset-intensive transactions.
Founders
RGA was formed on December 31, 1992. While specific individual founders are not detailed in the provided 2024 Annual Report, the company was established as an insurance holding company to aggregate and manage reinsurance operations, eventually growing into the global entity it is today.
Shareholding Pattern
RGA is a publicly traded company on the New York Stock Exchange.
- Total Shares Outstanding: 66,024,444 (as of January 31, 2025).
- Market Value of Non-Affiliate Stock: Approximately $13.5 billion (as of June 30, 2024).
- Dividend Policy: RGA paid $229 million in dividends to shareholders in 2024 ($3.48 per share).
- Share Repurchase: The Board authorized a $500 million share repurchase program in January 2024. No shares were repurchased under this program during 2024.
Investments and Capital Expenditure Plans
RGA maintains a diversified high-quality investment portfolio to support its liabilities.
Investment Portfolio (2024)
- Total Cash and Invested Assets: $101.4 billion.
- Fixed Maturity Securities: $77.6 billion (76.6% of total).
- Mortgage Loans: $8.8 billion (8.7% of total).
- Funds Withheld at Interest: $5.4 billion (5.4% of total).
- Investment Yield: The average investment yield (excluding spread-related business) was 4.82% in 2024, up from 4.68% in 2023.
Capital Expenditure & Strategy
- Portfolio Repositioning: In 2024, RGA repositioned its portfolio to generate higher yields, incurring $617 million in net capital losses to improve future income.
- Asset Allocation: Increased allocation to higher-yielding private and alternative assets.
- Capital Management: RGA utilizes an internal economic capital model to allocate capital to segments based on risk.
Future Strategy
RGA’s strategy focuses on capitalizing on industry trends through four key pillars:
- Leading with Expertise and Innovation: Combining product development with new reinsurance structures and leveraging data/analytics to open markets.
- Succeeding Together: Deepening global and regional client relationships and fostering third-party partnerships to accelerate innovation.
- Prioritizing Agility, Impact, and Scale: Prioritizing high-growth opportunities that fit risk appetites and capitalizing on the operating model to increase responsiveness.
- Building for Future Generations: Pursuing a balanced approach to in-force management, portfolio optimization, and fostering an inclusive culture.
Strategic Shifts:
- Retention Limit Increase: Effective January 1, 2025, RGA decided to increase its per life retention limit from $8 million to $30 million. This reflects the company’s increased size and ability to absorb volatility, and it is expected to increase future profits.
Key Strengths
- Market Leadership: Recognized as the largest global life and health reinsurer based on 2023 revenues.
- Financial Strength: Maintains “AA-” (Very Strong) insurer financial strength ratings from S&P.
- Diversification: balanced portfolio across geographies (North America, EMEA, Asia Pacific) and business lines (Traditional vs. Financial Solutions).
- Underwriting Expertise: Deep knowledge in facultative underwriting, allowing RGA to price complex risks effectively.
- Client Relationships: Long-standing relationships with the largest life insurance companies in the world. No single client generated 10% or more of total gross premiums in 2024.
Key Challenges and Risks
RGA discloses several risks that could materially affect its business:
- Actuarial Assumptions: Deviations in mortality, morbidity, or lapse rates from pricing assumptions can negatively affect income.
- Investment Risk: Exposure to interest rate fluctuations, credit defaults, and market volatility. A significant portion of assets are fixed maturity securities.
- Regulatory Risk: Highly regulated across multiple jurisdictions. Changes in capital requirements (e.g., NAIC Group Capital Calculation) or tax laws can impact operations.
- Cybersecurity: Dependence on computer systems and handling of personal data makes RGA susceptible to cyber threats and privacy regulations.
- Pandemic Risk: Vulnerability to epidemics (like COVID-19) which increase mortality claims and disrupt economic conditions.
- Counterparty Risk: Reliance on retrocessionaires and ceding companies to fulfill financial obligations.
Conclusion and Strategic Outlook
Reinsurance Group of America continues to assert its dominance as a global leader in life and health reinsurance. With $3.9 trillion in life reinsurance in force and a strategic pivot toward higher retention limits in 2025, the company is positioning itself for enhanced profitability. RGA’s ability to navigate complex regulatory landscapes, manage a $118 billion balance sheet, and innovate in financial solutions underpins its resilience. As it moves forward, the focus remains on leveraging its underwriting expertise and capital strength to solve the evolving risk management needs of insurers worldwide.
FAQ Section
Q1: What is RGA’s primary business?
A1: RGA primarily provides traditional life and health reinsurance and financial solutions, helping other insurance companies manage risk and capital.
Q2: Where is RGA headquartered?
A2: RGA is headquartered in Chesterfield, Missouri, USA.
Q3: Does RGA sell insurance directly to consumers?
A3: No, RGA is a reinsurer. It provides insurance to other insurance companies (ceding companies), not directly to individual policyholders.
Q4: What is RGA’s stock ticker symbol?
A4: RGA trades on the New York Stock Exchange under the ticker symbol RGA.
Q5: How large is RGA?
A5: As of December 31, 2024, RGA had $118.7 billion in total assets and $3.9 trillion of life reinsurance in force.
Q6: Does RGA pay dividends?
A6: Yes, RGA paid $3.48 per share in dividends to stockholders during 2024.
Q7: Who regulates RGA?
A7: RGA is regulated by the Missouri Department of Commerce and Insurance (MDCI) as its group supervisor, along with various other state and international regulatory bodies where its subsidiaries operate.
Official Site: https://www.rgare.com
Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.
