5 Insightful Analyst Questions From Reinsurance Group of America's Q2 Earnings Call

Reinsurance Group of America’s second quarter was marked by top-line growth but notable profit challenges, prompting a significant negative market reaction. Management attributed the underperformance to claims volatility within the U.S. individual life segment and higher-than-expected claims in healthcare excess, a segment of its U.S. Group business. CEO Tony Cheng described the quarter as “below expectations due to large claims volatility in U.S. individual life and unfavorable claims in our healthcare excess business,” highlighting that these factors offset favorable trends seen earlier in the year. Executives emphasized that these issues were consistent with broader market experiences and stressed that most of the healthcare excess block would be repriced by January 2026.

Is now the time to buy RGA? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Reinsurance Group of America’s Q2 Earnings Call

• John Barnidge (Piper Sandler) asked about the nature of the increased value in-force credits and whether assumptions around medical advances, such as GLP-1 drugs, were incorporated. CEO Tony Cheng confirmed that current credits reflect existing business and assumptions, with no change in actuarial assumptions yet.
• Elyse Greenspan (Wells Fargo) questioned the size and future impact of healthcare excess rate increases. Chief Risk Officer Jonathan Porter stated that implemented rate hikes are “significant” and will continue, aiming to improve margins by 2026.
• Jamminder Bhullar (JPMorgan) pressed on the lag between client health experience and RGA’s results, and the rationale for limited share buybacks. Porter explained claims are quickly known and appropriately reserved, while Cheng emphasized a balanced capital return approach with buybacks considered opportunistically.
• Tom Gallagher (Evercore ISI) probed the limitations of value in-force credits and ways to reduce earnings volatility. CFO Axel Andre outlined regulatory and rating agency guardrails, and Cheng noted potential for balance sheet optimization but stressed a long-term focus.
• Wes Carmichael (Autonomous Research) asked about the outlook for jumbo pension risk transfer (PRT) activity amid industry headwinds. Cheng said RGA sees “green shoots” in its pipeline and remains optimistic for increased activity, particularly in the U.S. market.

Catalysts in Upcoming Quarters

In upcoming quarters, StockStory analysts will watch (1) the impact of healthcare excess repricing on segment margins, (2) the integration and earnings contribution from the Equitable transaction, and (3) execution on global new business wins, especially in Asia and the U.K. Additionally, we will monitor capital deployment between growth investments and shareholder returns, as well as any reduction in claims volatility within the core U.S. segments.

Reinsurance Group of America currently trades at $186.92, down from $192.49 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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