RGA's Q2 net income surged 157% to $462M as claims ran favourably and investment yield hit 5.33%. CEO Cheng reaffirmed 2026 outlook. Stock trades near all-time high.
Reinsurance Group of America posted net income of $462 million in the second quarter, up 156.7% from $180 million a year earlier, as favourable claims experience and higher investment income powered the life and health reinsurer's best quarter yet.
Adjusted operating income came in at $586 million, an 86% gain from $315 million in Q2'25. Consolidated net premiums rose 7.7% to $4.5 billion, and total revenue climbed 18.5% to $6.6 billion.
Chief Executive Officer Tony Cheng credited "excellent results across our regions and business lines" and said claims experience ran "modestly favourable to expectations, reinforcing a trend since 2023 that validates our pricing and risk selection discipline."
The earnings beat follows a first half that Cheng said reflects "durable fundamentals and the strategic advantages of our diversified platform." RGA has kept its 2026 outlook intact, with management pointing to a healthy pipeline of new business opportunities.
The investment book contributed meaningfully. Investment income excluding spread-based businesses rose 10.3% year on year on a larger average invested asset base, and the average investment yield ticked up to 5.33% from 5.31%, helped by higher variable investment income.
By region, the picture was mixed. U.S. and Latin America net premiums slipped to $1.96 billion from $2.02 billion, and Europe, Middle East and Africa dipped to $568 million from $573 million. Canada grew to $348 million from $339 million, while Asia Pacific rose to $850 million from $816 million.
The U.S. and Latin America decline reflects RGA's willingness to walk away from business that does not clear its return thresholds, a stance Cheng highlighted: "We maintain the discipline to forgo deals that do not meet our standards."
RGA's stock has roughly doubled over the past 12 months and trades near its all-time high of $238, a run built on consistent underwriting results and steady reserve releases. The company reports regional breakdowns each quarter, and the next update will show whether the favourable claims trend extends into the second half.
For context on how RGA's diversified platform compares with broader market moves, see the RGA stock page and stock market analysis.
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