Reinsurance Group of America, Incorporated (RGA) Business Profile

What it does

Reinsurance Group of America, Incorporated, or RGA, takes on risks from insurance companies. In a reinsurance agreement, an insurer transfers some or all of the risk it has accepted from its own policyholders to RGA. This can help the insurer manage its exposure, support its financial strength and write more business.

RGA reinsures individual and group life and health policies, as well as disability, long-term care and critical illness coverage. It also offers financial solutions, including reinsurance for annuities and other products with investment risks, longevity reinsurance, pension risk transfer and capital solutions.

Some agreements cover individual policies that RGA evaluates separately. Others automatically transfer qualifying policies under a treaty, without RGA approving each policy individually. Depending on the agreement, RGA may assume risks associated with deaths, illness, policy lapses or investment performance.

RGA was founded in 1973 and is headquartered in St. Louis. Tony Cheng is president and chief executive officer. RGA is a holding company; its insurance subsidiaries conduct the business and retain the risks. It had 4,300 employees in FY2025.

How it makes money

RGA earns revenue primarily from premiums on existing and new reinsurance treaties, fees from financial solutions and income on invested assets. It also earns investment spreads on certain investment-type contracts: the difference between investment earnings and amounts credited or otherwise owed under the contracts.

Its geographic operations are organized into U.S. and Latin America, Canada, Europe, Middle East and Africa, and Asia Pacific, alongside Corporate and Other. The geographic operations are further divided into traditional reinsurance and financial solutions.

Traditional life reinsurance often covers policies for the remaining lifetime of the insured person. Premiums are typically earned over a period of 10 to 30 years or longer, although policies can end earlier through lapses, deaths, surrenders or an insurer taking back previously ceded risk. Health business is generally shorter in duration. RGA prices agreements using assumptions about claims, policyholder behavior, investment returns and expenses.

Financial solutions include longevity contracts, under which RGA earns premiums for taking on the risk that insured annuitants live longer. Asset-intensive reinsurance transfers risks associated with products such as annuities and can involve ongoing investment and claims management. In pension risk transfer, RGA issues an annuity contract to a plan sponsor, assumes investment and biometric risks, and typically receives a single premium at inception. Capital solutions include fee-based transactions that help insurers meet regulatory requirements.

Profitability depends on the risks assumed and the experience that follows. Claims, investment performance and expenses can differ from the assumptions used in pricing, while recapture can reduce future premiums.

Customers and how it sells

RGA’s principal customers are insurance companies that transfer portions of their life, health, annuity and other risks. The agreements can cover new policies as they are written or existing blocks of business. RGA also works with partners and pension plan sponsors on arrangements that transfer pension-related risks.

The company operates in the U.S., Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia. Its geographic operations are grouped into U.S. and Latin America, Canada, Europe, Middle East and Africa, and Asia Pacific. A significant portion of net premiums comes from outside the U.S.

RGA works directly with clients on treaty terms and, for asset-intensive business, on ongoing investment and claims management. In automatic treaties, qualifying policies are ceded under agreed criteria; facultative agreements involve RGA underwriting individual policies. The company also provides underwriting services to insurers.

In Q2 2026, RGA closed a Hong Kong flow coinsurance treaty supporting a client’s launch of a product addressing longevity needs. It also completed an asset-intensive transaction in continental Europe.

Suppliers and costs

RGA’s principal cash outflows include payments associated with life and health insurance, annuity and disability liabilities, as well as operating expenses, income tax and interest on debt. It also invests cash from insurance operations to help fund insurance liabilities. Claims and policy benefits, interest credited to policyholders and financing costs are significant components of segment expenses.

The company uses other insurers, known as retrocessionaires, to take on portions of the reinsurance risk it has accepted. Those counterparties may be unable to meet their obligations. RGA also relies on its insurance clients for timely and accurate information and, under some agreements, on their original underwriting decisions.

Third-party asset managers, software vendors and administrators perform functions for RGA. For some treaties, the ceding insurer retains and manages assets supporting reserves; RGA remains exposed to the investment performance of those assets without directly controlling them.

Regulatory reserve and collateral requirements affect costs. If collateral becomes more expensive or is unavailable, RGA may need to raise additional capital or change the type or volume of business it reinsures.

Competitive position

RGA competes globally with other reinsurers, traditional insurance providers, private equity firms and other financial services companies. Competitors vary by geographic market, and new reinsurance opportunities are price competitive. RGA does not name individual competitors in its description of the competitive landscape.

Winning business depends on pricing and contract terms, financial strength, reputation, service, execution and commitment to the business underwritten. RGA also competes through underwriting, mortality insights, transaction execution and client relationships. Some competitors have greater financial resources and flexibility than RGA.

Our reading: RGA’s underwriting expertise and client relationships can help it win business beyond price alone, but the evidence does not establish that those capabilities prevent customers from using other providers. Its underwriting services have led to reinsurance opportunities, including a client relationship that grew into a longer-term transaction.

Our reading: Scale and geographic reach support RGA’s ability to work across markets and risks, but their protection is limited by price competition and the importance of maintaining financial strength ratings. RGA had $4.3 trillion of life reinsurance in force and assets of $156.6 billion as of December 31, 2025; a ratings downgrade could affect its ability to retain and win business.

Growth opportunities

RGA seeks new business through both recurring flows of policies and transactions involving existing blocks. It believes insurers will continue to use reinsurance to manage risk, improve capital efficiency and navigate regulatory and accounting changes. It also expects rising cession rates in international markets as middle-class growth and wealth creation support insurance demand.

The company sees demand for retirement and protection products as populations age. It also expects interest in pension risk transfer as employers seek to reduce longevity risk in retirement plans. Regulatory and accounting changes can create opportunities for capital solutions that help insurers release capital or exit product lines.

In Q2 2026, RGA completed transactions in Asia Pacific and Europe and reported steady individual life new-business activity in the U.S. Total premiums excluding PRT grew 10.5% year-to-date, or 9.3% constant currency. RGA deployed nearly $500 million year-to-date into in-force transactions and said expected returns on new business met or exceeded its targets.

RGA expects Ruby Re, its third-party capital vehicle, to be fully deployed in 2026 and is evaluating options for another sidecar vehicle. It expects third-party capital to help fund growth and generate fee income over time. Transaction timing can vary from quarter to quarter, and RGA remains selective about the risks it assumes.

Structural risks

• Pricing and claims: Deaths, illness, longevity, policy lapses, investment returns and expenses can differ from pricing assumptions. Unfavorable experience can reduce income, require reserve increases and create earnings volatility. Epidemics and pandemics can worsen mortality and morbidity losses.
• Investment and market exposure: Changes in interest rates, equity markets and volatility affect investments and certain reinsured guarantees. RGA’s hedging program may not fully offset changes in the value of those guarantees.
• Capital and regulation: Insurance subsidiaries face capital, reserve and investment rules, as well as limits on payments to the holding company. Higher collateral costs or insufficient collateral for retroceded business could reduce statutory capital and restrict new business.
• Ratings and recapture: A downgrade could make it harder to win or retain business. Some contracts allow clients to terminate coverage or require additional collateral following specified downgrade events; other agreements give clients rights to take back ceded risk.
• Counterparties and operations: Retrocessionaires or clients may fail to meet obligations. RGA also depends on client data and underwriting, third-party service providers and, in some agreements, assets managed by the ceding insurer.
• International exposure: Currency movements affect foreign earnings and investments. RGA also faces different regulatory requirements, market-access restrictions and political and economic conditions across its international operations.

Bottom line

Our reading

RGA is a long-duration risk-transfer business whose earnings depend on pricing insurance and investment risks and managing the assets and capital supporting them. Its recurring treaties and global reach provide multiple sources of business, while claims, investment results and regulatory capital needs can change the returns ultimately earned. Underwriting and client relationships support its competitive position, but price competition and financial strength remain consequential.