Reinsurance Group of America Inc Announces Reinsurance Transaction with Equitable Holdings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Elyse Greenspan - Wells Fargo - Analyst : Hi, thanks, good morning. My first question, I just wanted to, confirm on some of the financials, right? So the $70 million of earnings this year and $160 million next year, are those all was the earnings from the deal embedded within the run rate guidance as well as like the intermediatecagers that you outlined with earnings?

Question: Elyse Greenspan - Wells Fargo - Analyst : Thanks. And then my follow up, right, so at a run rate basis, right, this is $200 million of earnings, that's pre-tax, right? So on an after-tax basis. And with the 1.5 billion of capital, the return seems at around 10.5%. I know you said it's In line with targets, can you REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, RGA.N - Reinsurance Group of America Inc Announces Reinsurance Transaction with Equitable Holdings Call just comment on the return here and I guess, relative to what you're targeting on deals because I think right the overall operating ROE target for the company is is a bit higher, right, the 13% to 15% relative to something in the 10% to 11% range.

Question: Wes Carmichael - Autonomous Research - Analyst : Thanks. I really just wanted to follow up on the last question on ROE because if I did the math on the 200, and Tony you mentioned investment income and then you take out $600 million for the debt that leaves a $900 million dollar equity deployment. So on my math is north of 15% ROE and you guys are saying it's kind of closer to your 13% to 15% target. So just trying to see if we can maybe square that a little bit more.

Question: Wes Carmichael - Autonomous Research - Analyst : Got it. That's really helpful. And then act so maybe on you so you're deploying $1.5 billion with this transaction in mid 2025 if I'm not mistaken, I think that's well above what you would have assumed in your run rate earnings guidance with the fourth quarter. So how much does this really accelerate the pace of capital deployment versus what you guys would have assumed when you provided those figures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, RGA.N - Reinsurance Group of America Inc Announces Reinsurance Transaction with Equitable Holdings Call

Question: Jimmy Bhuller - JP Morgan - Analyst : Hey, good morning. So just to beat a dead horse because I think there was a little bit of confusion about your guidance on the earnings call as well. So in your growth guidance, you would assume that you'd be doing some deals, and this transaction that you announced sort of gets you closer to that point. So some of this would have been embedded in your earnings anyway, but if you do more, a lot more then obviously there's upside and if you don't do anything. Then you wouldn't, approach the guidance that you mentioned, but I think the point you're trying to make is that this gets you closer to being, at the, within your range anyway even with just this one deal, correct?

Question: Jimmy Bhuller - JP Morgan - Analyst : And this is obviously a very large deal, but how do you see the opportunities that other than this throughout this year, and do you think that this increases the odds of you maybe, potentially doing more than what you'd anticipated given how chunky this one transaction is? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, RGA.N - Reinsurance Group of America Inc Announces Reinsurance Transaction with Equitable Holdings Call

Question: Suneet Kamath - Jefferies - Analyst : Thanks. My first question on the $1.5 billion, it sounds like to your point, Axel, you've done the deployment for, 2026, I guess. But as we think about what you're going to need to do to keep the 8% to 10% going, I mean, it sounds like you're going to need to continue to come up with $1.5 billion of capital to deploy. Sounds like you're using your leverage capacity with this deal, so. A simple question is where does that capital come from, because if I look at slide 9 of your deck, it looks like your free cash flow is implied free cash flow is a lot less than that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, RGA.N - Reinsurance Group of America Inc Announces Reinsurance Transaction with Equitable Holdings Call

Question: Suneet Kamath - Jefferies - Analyst : Okay, so you're -- just to be clear, your capital plans and deployment plans and growth plans don't anticipate or contemplate any need to raise equity capital. It's it's all debt and third party capital that you talked about.

Question: John Barnidge - Piper Sandler & Co. - Analyst : Good morning. Thank you for the opportunity. My question on the asset repositioning. How long do you anticipate that will take, for the asset repositioning to be completed and to be to see that net investment and come? Thank you.

Question: Elyse Greenspan - Wells Fargo - Analyst : Oh sorry, I was.

Question: John Barnidge - Piper Sandler & Co. - Analyst : Thank you for that. My follow up question is around the additional sources of capital. You talk about strategic retro sessions and additional third-party capital vehicles. Can you talk about visibility and appetite for that? Thank you.

Question: Alex Scott - Barclays - Analyst : Hi, good morning. I just wanted to go back to the -- I guess the remaining capital capacity you have kind of following this deal. I think an $800 million number was mentioned. I just wanted to understand that a little bit better. Could you kind of break that apart in terms of, is that just equity? Is that assuming that capacity at some level, does that include, anything from assumed ruby redeployment? Thanks.

Question: Alex Scott - Barclays - Analyst : Got it. That's very helpful. And then, maybe just give us some broad color on the pipeline for for larger deals like this. I mean, it seems like there's some possibility of large deals like this occurring in Japan around the regulatory changes, but should we take this as any kind of indication that maybe larger deals are. Coming into the market at a bit faster pace at the moment, and there's more of that kind of potential, or is this more of a one off?

Question: Wes Carmichael - Autonomous Research - Analyst : Hey, thank you for, taking the follow up. It, it's part of the transaction you mentioned creation and expanding the strategic partnership with equitable. Can you maybe just give us a little bit of color on what you expect going forward on product development? Or are you going to be thinking about new products with equitable and reinsuring them and providing capital solutions, etc. Just thought that would be helpful.

Question: Wes Carmichael - Autonomous Research - Analyst : Thank you.