Reinsurance Group of America (RGA) closed 2025 with its strongest earnings in recent memory, posting a 65% surge in full-year net income. The $32 billion reinsurance transaction with Equitable Holdings, which closed in July, was the largest single contributor to a record year of capital deployment.
RGA generated $1.18 billion in net income for 2025, or $17.69 per diluted share. This compares with $10.73 per diluted share in 2024. Adjusted operating income climbed to $1.52 billion for the year. Deployable capital stood at $3.4 billion at year-end.
CEO Tony Cheng described the Equitable closing as a defining moment for the company.
“The successful closing of our transaction with Equitable represents a significant milestone for RGA,” he said. “We view this highly strategic transaction as a great example of how RGA can partner with our clients to execute mutually beneficial deals that enable growth and yield long-term value.”
Cheng added that the deal aligns with RGA’s Creation Re strategy.
RGA deployed a record $2.5 billion into in-force block transactions during 2025. The Equitable deal accounted for $1.5 billion of that total. The pace marks an increase from 2024, when RGA committed $1.7 billion to in-force blocks, including a $4 billion universal life transaction in Canada and a $4 billion individual life annuities deal in Japan. The company also bought back $125 million in shares during the year.
Under the Equitable agreement, RGA reinsured 75% of the insurer’s individual life portfolio. The block covers approximately $18 billion in general account reserves and $14 billion in separate account reserves.
RGA issued a $700 million subordinated debenture to help finance the transaction. The deal contributed approximately $70 million in adjusted operating income before taxes in 2025. At maturity, it is projected to generate roughly $200 million in annual pre-tax income.
The results drew both affirmation and caution from rating agencies. AM Best confirmed its A+ financial strength rating for five RGA subsidiaries in February 2026, citing strong balance sheet strength and operating performance.
The agency also noted that RGA’s growing exposure to higher-risk product lines – including annuities, longevity reinsurance, and a long-term care block – could introduce earnings volatility in future periods.
The deployment acceleration in 2025 puts RGA ahead of the pace it set in 2024. How the long-dated assumptions embedded in the Equitable contract perform against actual claims experience will be a key variable to watch in the years ahead.
