Description

Reinsurance Group Of America Exits Group Health—A Smart Move Or Missed Opportunity?

Reinsurance Group of America reported record financial results for full-year 2025, marked by a fourth quarter operating earnings per share (EPS) of $7.75 and a trailing twelve-month adjusted operating return on equity (ROE) of 15.7%, exceeding the company’s intermediate-term target range of 13% to 15%. The company achieved an 18% increase in the value of in-force business margins during the year, reflective of strong new business, favorable management actions, and underwriting experience across its global platform. Geographically, the United States segment benefited from variable investment income and stable individual life mortality, though the U.S. group health care business experienced unfavorable claims, prompting a full repricing for 2026 and a strategic decision to exit this line, which represents approximately $400 million in premiums and generates about $25 million in annual pretax earnings. This exit is anticipated to minimally impact 2026 results but will have a greater effect in 2027.