The Reinsurance Group of America (RGA) said at Barclays' 24th Annual Global Financial Services Conference on Tuesday that its 2026 outlook centers on selective growth, disciplined capital deployment, and the continued roll-out of its Ruby Re sidecar vehicle.
Chief Financial Officer Laura Cockrill and Chief Commercial Officer Ron Herrmann provided updated detail on the company's capital position, noting excess capital of about $2 billion as disclosed at the end of the second quarter. RGA has set a return-on-equity target of 13% to 15%, up from a current level of 12%, and expects earnings-per-share growth of 8% to 10%. The company also reaffirmed its dividend payout-ratio commitment of 20% to 30%, marking the 16th consecutive year of dividend increases.
In-force embedded value stands at approximately $44 billion, with an emergence period of roughly 10 to 15 years, giving management about 12 to 18 months of visibility into its transaction and flow mix. On the Equitable transaction, both officers described early performance as in line with expectations from mortality and earnings perspectives. The deal includes a $32 billion statutory reserve block, and RGA has assumed underwriting responsibilities for three organizations through that relationship structure. The company noted that capped cohorts—blocks where the net premium ratio exceeds 100% under the new long-duration targeted improvement accounting framework—were reduced by 25%.
Ruby Re, which is expected to be fully deployed in 2026, provides additional capital and creates a recurring, capital-light fee-income stream. RGA emphasized that the sidecar also serves as a pricing check through third-party investor participation, helping to balance public and private balance sheets.
Geographically, the firm said growth in Asia Pacific remains concentrated mainly in Japan and Hong Kong, driven by flow transactions, single-premium whole life products, and exclusive flow arrangements developed through product innovation and regulatory collaboration. In the U.K. and broader EMEA region, longevity business remains a major presence; 2026 started slower with pipelines rebuilding, but RGA said it retains the ability to handle both small and large transactions. In the Americas, market activity remains selective, with many deals converting into exclusive arrangements. Pension risk transfer activity was slower in early 2026, though the company expects the second half to meet expectations.
Underwriting and technology were another focal point. RGA said application counts for its Strategic Underwriting Programs are expected to double year over year. The firm is working with about 30 companies on certain underwriting elements and has placed all or a significant portion of underwriting services with three companies. The programs aim to shift underwriting from a fixed cost to a variable cost for clients, leveraging tools and artificial intelligence to scale the team and address industry-wide capacity and talent-retention challenges.
On mortality, RGA reported favorable experience in the U.K., U.S., and Canada. The company acknowledged potential tailwinds from medical advances, particularlyGLP-1 medications—including upcoming oral versions, expanded Medicare coverage, and potential generic competition lowering costs—but stressed that it applies conservatism and relies on observed historical validation before shifting assumptions. Long-term care liabilities represent less than 10% of total liabilities.
RGA's shares closed at $249.05, near their 52-week high of $257.81. The stock has risen about 25% over the past six months and 34% over the past year. The company's market capitalization stands at approximately $16.3 billion, with a price-to-earnings ratio of about 10.98 and a PEG ratio of 0.11. Revenue growth over the trailing period was reported at 19%.
