Reinsurance Group of America, Incorporated (RGA): PESTLE Analysis [Nov-2025 Updated]

You're navigating a complex financial landscape, and understanding a giant like Reinsurance Group of America, Incorporated (RGA) requires cutting through the noise. The direct takeaway is this: RGA's strength lies in its diversified mortality and longevity risk portfolio, but its near-term performance is defintely tied to global interest rate movements and the patchwork of evolving data privacy laws across its key markets. We need to map these external pressures-from evolving Solvency II rules to the rapid adoption of AI in underwriting-to RGA's strategic position, so you can see exactly where the real risks and opportunities are hiding in the PESTLE framework below.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Political factors

Increased government scrutiny on life insurance industry capital adequacy.

You are operating in a world where regulatory bodies are defintely not relaxing their grip on capital. The primary political factor here is the push for greater capital adequacy (how much cash a company must hold) at the group level, moving beyond just individual subsidiary rules. For Reinsurance Group of America, Incorporated (RGA), the good news is that the U.S. regulatory environment, led by the National Association of Insurance Commissioners (NAIC), has largely stabilized this risk.

The U.S. Group Capital Calculation (GCC) is the accepted standard for assessing capital adequacy for large, internationally active groups like RGA. Crucially, the International Association of Insurance Supervisors (IAIS) determined in late 2024 that the U.S. GCC method is comparable to their global Insurance Capital Standard (ICS). This comparability means RGA is not expected to be required to calculate the more complex ICS in the future. This saves significant compliance costs and removes a major layer of uncertainty.

RGA's balance sheet reflects this strength, reporting estimated excess capital of $2.3 billion as of September 30, 2025. In Europe, where RGA also has significant operations, the regulatory environment is still demanding; the median Solvency Capital Requirement (SCR) ratio for life insurers was 230% at year-end 2024, down from 246% in Q4 2023, showing the constant pressure to maintain high capital buffers. RGA's Singapore Branch, for instance, reported a robust Capital Adequacy Ratio (CAR) of 1252% at December 31, 2024. That's a huge buffer.

Trade tensions impacting cross-border reinsurance capital flows, especially in Asia.

The global shift toward 'geoeconomic fragmentation' is a political headwind that directly complicates RGA's cross-border business, particularly in the Asia Pacific segment. This trend means capital flows are increasingly restricted within geopolitical blocs, making it harder to move capital efficiently between subsidiaries to optimize solvency.

The intensifying U.S.-China trade tensions in 2025 are the core of this risk. Proposed U.S. tariffs, which could reach up to 60% on Chinese imports and 10-20% on other Asian imports, are increasing market volatility across the region. This volatility affects equity markets and foreign exchange rates, which in turn impacts the valuation of RGA's investment portfolio and the cost of hedging currency risk for its Asian operations.

The political environment is causing global trade to slow, with Swiss Re Institute forecasting global GDP growth to decelerate to 2.3% in 2025, down from 2.8% in 2024. This slowing growth, driven by protectionist policies, dampens overall demand for insurance and reinsurance products, even in high-growth markets. The political risks are now a direct financial risk.

Geopolitical instability in emerging markets where RGA seeks growth.

RGA is actively pursuing growth in emerging markets, which fall under its Asia Pacific and Europe, Middle East, and Africa (EMEA) segments. This strategy, while offering high potential, exposes the company to elevated political risk. Geopolitical instability is a dominant driver of risk in 2025, with conflicts in Eastern Europe and the Middle East creating regional instability.

Emerging markets like Sub-Saharan Africa and Southeast Asia are attracting geopolitical capital, but they also face a high level of political and social risk. The Coface political risk index remains high at 40.2% in 2025, indicating that 112 of the 162 countries assessed face a higher political and social risk level than before 2020. This instability translates into concrete risks for RGA's operations:

• Currency Volatility: Increased risk from exchange rate fluctuations and potential capital controls.
• Regulatory Divergence: Operational complexities from increasingly divergent regulatory frameworks in local jurisdictions.
• Cyber Threats: Escalating state-sponsored cyber activities targeting financial systems.

For RGA, managing this exposure is critical, especially as the company focuses on deploying capital into in-force transactions, which totaled $1.7 billion in the third quarter of 2025. A significant portion of that capital is at risk if a local political crisis forces a sudden market withdrawal or devaluation.

Favorable tax policies for long-term savings products in the US and Europe.

The political decision to maintain the tax-advantaged status of long-term savings products, such as annuities and life insurance, is a major positive driver for RGA's business. While no major new tax breaks are expected in 2025, the existing framework continues to spur massive demand, which RGA reinsures. Global life insurance premiums are projected to grow at an annual rate of 3% in 2025 and 2026, more than double the growth rate of the past decade.

In the U.S., the demand for tax-deferred growth is extremely strong. Individual annuity sales are expected to exceed $400 billion in 2024, a significant jump from the average of $234 billion over the prior decade. In Europe, the growth of unit-linked products, which also benefit from tax efficiencies, is a trend expected to expand to the U.S. market by 2025. This high-demand environment for life and health reinsurance is a direct benefit of stable, favorable tax policy, which underpins RGA's financial solutions segment.

Here's the quick math: RGA expects its major reinsurance transaction with Equitable to contribute approximately $70 million of adjusted operating income before taxes in 2025, a deal that is heavily reliant on the stability of the U.S. life and annuity market's regulatory and tax structure. Any political move to change the tax treatment of these products would immediately threaten this income stream.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Economic factors

Sustained high interest rate environment boosting new money yields on fixed-income assets.

The prolonged period of elevated interest rates in 2025 is a clear tailwind for Reinsurance Group of America, Incorporated (RGA), especially for their fixed-income investment portfolio. You're seeing the immediate benefit in new money yields, which is the rate they can lock in on new bond purchases or reinvestments.

In Q2 2025, RGA's new money rate, a key performance indicator (KPI) for a life reinsurer, improved to 6.53%, up from 6.39% in the previous quarter. This higher yield is well above the overall portfolio yield, meaning every new dollar deployed is accretive to earnings over time. The total non-spread portfolio yield for Q2 2025 was 5.31%. Investment income, excluding spread-based businesses, increased 12.4% in Q3 2025, largely due to a larger average invested asset base and these stronger new money rates.

Here's the quick math: a higher reinvestment rate immediately improves the profitability of long-duration liabilities like life and annuity blocks.

Metric	Q2 2025 Value	Q3 2025 Value	Significance
New Money Rate	6.53%	6.14%	Indicates strong yield on new fixed-income investments.
Total Non-Spread Portfolio Yield (Q2)	5.31%	4.73%	Q3 drop reflects lower variable investment income, but new money rate remains high.
Investment Income Increase (Q3 YoY)	N/A	12.4%	Driven by higher new money rates and a larger asset base.

Global inflation pressures increasing operational costs and impacting policyholder behavior.

While the high-rate environment helps investment income, global inflation remains a structural headwind. Global inflation is expected to steadily ease to around 3.4% in 2025, down from 4.5% in 2024, but the pressure points for RGA are specific. Persistent inflation, particularly in health and healthcare, continues to complicate profitability assumptions for their health reinsurance business.

More concerning is the impact of social inflation (the rising cost of legal settlements and jury awards), with trend lines moving past 10% levels in 2025 for some casualty lines, which can indirectly affect the liability side of the life and health business. For policyholders, a high inflation/high-rate environment can increase lapse rates (policy cancellations) as they look to surrender older, low-yield policies for newer financial products offering better returns. This means RGA must manage the risk of having to pay out on policies sooner than expected, which can create a liquidity challenge if not managed carefully.

Volatility in equity markets affecting investment income and capital positions.

Equity market volatility directly impacts RGA's variable investment income (VII), which is a key component of their Financial Solutions segment. The company maintains a diversified alternative equity strategy, with a significant allocation of 56% in private equity and 36% in real estate joint ventures. This exposure means a significant market downturn can hit quarterly results hard.

We saw this volatility play out in Q3 2025, where the results were negatively impacted by lower variable investment income, which underperformed internal expectations by about $40 million. This drag was a primary reason the average investment yield for the quarter dropped to 4.73%, down from 5.08% in the prior year. The key action here is to keep the long-term return assumption for these variable investments realistic, especially when market sentiment shifts quickly.

Currency fluctuations impacting translation of international earnings, a core RGA risk.

As a global reinsurer with operations across the U.S., Latin America, Canada, Europe, the Middle East, Africa (EMEA), and Asia Pacific, RGA is defintely exposed to foreign currency translation risk. This is simply the effect of converting international earnings back into the reporting currency, the U.S. Dollar.

The impact is volatile, changing from a headwind to a tailwind within a single year, which makes quarter-to-quarter comparisons tricky. You need to look at the adjusted operating income (AOI) impact to see the true volatility:

• Q1 2025: Unfavorable effect of $0.09 per diluted share on AOI.
• Q2 2025: Favorable effect of $0.12 per diluted share on AOI.
• Q3 2025: Favorable effect of $0.04 per diluted share on AOI.

The Q2 2025 favorable currency effect translated to $45 million on net premiums, while Q3 2025 saw a favorable effect of $29 million. This constant fluctuation underscores why RGA's geographic diversification is a risk-management tool, but also a source of earnings noise.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Social factors

Growing demand for longevity reinsurance products due to aging populations in developed markets.

You can't ignore the sheer demographic shift happening in developed nations; it's the biggest structural tailwind for Reinsurance Group of America's Financial Solutions segment. The 'silver tsunami' of Baby Boomers reaching retirement is creating a massive need for products that offer guaranteed, long-term income, which is exactly where longevity reinsurance comes in. This isn't a future problem; it's a current market driver.

Globally, the retirement savings gap is projected to balloon from US$106 trillion in 2022 to an estimated US$483 trillion in 2050, according to industry analysis. That huge gap means primary insurers are offloading more of their long-term risk to specialists like RGA, who are experts at managing that longevity exposure. In the U.S. alone, the population aged 65 and over is set to grow from 58 million in 2023 to 82 million by 2050, ensuring a steady, long-term pipeline for RGA's longevity swaps and asset-intensive reinsurance business.

Increased public awareness of mortality and health risks post-pandemic driving new policy sales.

The pandemic fundamentally changed how people view their own mortality and health security. This heightened awareness has translated into a solid, but volatile, demand for life and health coverage, and RGA is right in the middle of managing the downstream risk.

In the first quarter of 2025, RGA reported a favorable biometric claims experience across all segments, totaling $196 million on an economic basis. That's a strong start. But, to be fair, the risk isn't gone. The second quarter of 2025 saw volatility, with U.S. Individual Life experiencing a high level of large claims, which offset the earlier favorable results. Still, the long-term outlook is changing, especially with medical advancements.

For example, RGA's own research suggests that widespread adoption of GLP-1 medications (for weight loss and diabetes) could potentially lower overall US mortality by as much as 3.5% by 2045. This is a critical social trend that RGA must price into its future mortality tables, turning a public health win into a long-term reinsurance opportunity.

Shifting consumer preferences toward digital-first insurance and simplified underwriting.

Consumers want insurance to be as easy as ordering a coffee, and the industry is defintely responding. The move to digital-first (Direct-to-Consumer or D2C) and simplified underwriting is a major social factor affecting RGA's primary clients.

This push for speed and simplicity is driving technology adoption across the board. Over 60% of life insurers are investing heavily in simplified and accelerated underwriting systems by 2025. RGA is supporting this by leveraging its own data and AI capabilities to help clients reduce time-to-offer and decrease cost per case. They are focused on:

• Streamlining customer journeys using machine learning and analytics.
• Expanding the use of accelerated underwriting processes for annuities.
• Integrating digital tools to improve the entire customer experience.

This is a race to simplify complexity, and RGA's role is to provide the data-driven risk engine behind those fast, digital front-ends.

Widening wealth gap affecting demand for high-value protection and savings products.

The growing disparity in wealth creates a dual challenge for the reinsurance market: a surge in demand for high-value solutions at the top, and a massive protection gap at the bottom. This is a key segmentation issue for RGA's clients.

At one end, the concentration of wealth drives demand for sophisticated, high-value life and savings products, including complex financial solutions and asset-intensive reinsurance, which is a strong growth area for RGA's U.S. Financial Solutions segment. At the other end, more than 100 million Americans remain uninsured or underinsured in 2025, according to the latest LIMRA Insurance Barometer Study. This 'protection gap' represents a huge, untapped market that requires low-cost, simplified, and accessible products.

The shift means RGA must maintain its expertise in high-net-worth solutions while also helping its clients develop products for the underserved market. This table shows the contrasting market focus driven by this social factor:

Market Segment	Social Factor Impact	RGA Business Focus
High-Net-Worth Individuals	Concentration of wealth drives demand for complex estate and savings products.	Financial Solutions (Asset-Intensive, Longevity Swaps)
Middle/Lower-Income Families	Widening protection gap; over 100 million uninsured/underinsured in the US.	Traditional Life Reinsurance (Focus on simplified, low-cost term products)

Finance: Monitor RGA's new business premium growth in both Financial Solutions and Traditional segments for Q4 2025 to see which segment is capturing the most value from these social trends.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Technological factors

Rapid adoption of Artificial Intelligence (AI) for faster, more precise underwriting decisions.

The shift to Generative AI (GenAI) is no longer a pilot program; it's a core strategic factor for Reinsurance Group of America, Incorporated (RGA) in 2025. You are seeing a move from simple automation to advanced reasoning models that can process massive, complex documents in seconds. RGA's Q3 2025 insights, for example, highlighted that models like Meta's Llama 4 Scout now support context windows up to 10 million tokens, which means an AI can analyze entire policy documents or compliance manuals in a single pass.

This capability is defintely transforming underwriting (the process of assessing risk for an insurance policy). Across the life insurance sector, approximately 40% of insurers have adopted or are planning AI integration. This isn't just a marginal gain; it's a fundamental change in speed and accuracy. Industry data shows that AI-powered processes reduce the average policy issue time from 33 days to just 12.5 days. That's a huge competitive advantage for RGA's ceding company clients, and it leads to better placement rates for RGA.

Here's the quick math on AI's operational impact in underwriting:

Metric	Pre-AI Benchmark	AI-Integrated Performance (2025)	Impact
Average Policy Issue Time	33 days	12.5 days	Reduction of 20.5 days
Underwriting Accuracy	Baseline	Improved by 54%	More reliable risk assessment
AI Adoption Rate (Life Insurers)	Not applicable	40% (adopting or planning)	Massive industry shift

Use of predictive analytics to manage in-force blocks and identify lapse risks.

For a reinsurer like RGA, managing the existing book of business, or 'in-force blocks,' is just as critical as writing new business. Predictive analytics, which uses statistical algorithms and machine learning to forecast future outcomes, is key here. RGA's value of in-force business margins totaled $41 billion at the end of Q2 2025, with approximately $2 billion coming from new business year-to-date. Protecting that value requires sophisticated lapse modeling-predicting when a policyholder might stop paying premiums-and mortality trend analysis.

Predictive analytics doesn't just manage risk; it optimizes the portfolio's profitability. It allows RGA to:

• Forecast policyholder behavior for better reserving.
• Identify fraud with a 28% increase in detection rates across the industry.
• Optimize capital deployment, which is critical given RGA's deployable capital rose to $3.4 billion in Q2 2025.

This is where RGA gets to be a true partner to its clients, offering them data-driven insights to stabilize their own operating results. You simply can't run a modern reinsurance book without this depth of data science.

Cybersecurity risks escalating due to increased reliance on cloud infrastructure and data sharing.

The flip side of all this digital progress is the escalating cybersecurity risk. RGA is a massive repository of highly sensitive health and financial data, making it a prime target. The vulnerability of the entire re/insurance sector is increasing, driven by digitalization and the greater adoption of shared network infrastructure and third-party cloud service providers.

Ransomware attacks, which showed a year-over-year increase of approximately 25% in 2024, are a major concern, with business interruption costs accounting for 51% of losses. The average loss from a single data breach in 2024 was $4.9 million. RGA's governance structure reflects this reality, with the Board's Risk Committee and a dedicated Cybersecurity and Technology Committee overseeing the strategy. The Chief Information Officer (CIO) and Global Chief Information Security Officer (CISO) provide quarterly updates to the committee, which shows the topic is a top-tier management priority, not just an IT issue. A single, large-scale data breach could severely erode client trust and regulatory standing.

Blockchain exploration for smart contracts to streamline claims and settlements.

While AI is in the implementation phase, blockchain technology remains in the exploration and pilot stage for RGA and the life reinsurance industry generally. Still, the potential is enormous. Blockchain, a distributed ledger technology (DLT), can enable smart contracts-self-executing contracts with the terms of the agreement directly written into code. This could revolutionize claims and settlements by removing intermediaries and automating payouts based on verified, immutable data.

The industry recognizes this potential: a March 2025 report found that 55% of insurance experts identified new technologies like blockchain as a top trend impacting the sector over the next one to three years. For RGA, the opportunity lies in:

• Reducing the administrative cost of complex, long-duration reinsurance contracts.
• Increasing the transparency and security of data sharing with ceding companies.
• Streamlining the claims process to near-instantaneous settlement upon trigger events.

The challenge is integrating this DLT with decades of legacy systems and navigating the regulatory complexity of a decentralized ledger. But honestly, the efficiency gains could be game-changing for capital management.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Legal factors

Implementation of new US state-level data privacy laws requiring costly compliance upgrades.

You're operating in a fragmented legal environment, and this year, 2025, is defintely the year the complexity exploded. The absence of a unified US federal privacy law means Reinsurance Group of America, Incorporated (RGA) must navigate a complicated, state-by-state patchwork of regulations. This isn't just a headache; it requires substantial, non-revenue-generating investment in IT systems and legal review.

In 2025 alone, eight new comprehensive state privacy laws took effect, forcing RGA to update its data collection, processing, and consumer rights fulfillment systems across its US operations. This is a massive operational lift. The new laws force RGA to implement granular controls, especially around sensitive data like consumer health information, and to honor opt-out requests for targeted advertising and data sales, even though RGA's core business is not data brokerage.

Here's a quick look at the new laws RGA must comply with in 2025:

• Delaware Personal Data Privacy Act (Jan 1, 2025)
• Iowa Consumer Data Protection Act (Jan 1, 2025)
• Nebraska Data Privacy Act (Jan 1, 2025)
• New Hampshire Privacy Act (Jan 1, 2025)
• New Jersey Consumer Data Protection Act (Jan 15, 2025)
• Tennessee Information Protection Act (July 1, 2025)
• Minnesota Consumer Data Privacy Act (July 15, 2025)
• Maryland Online Data Privacy Act (Oct 1, 2025)

Evolving international accounting standards (e.g., IFRS 17) changing how liabilities are reported.

The International Financial Reporting Standard 17 (IFRS 17) is a massive change for RGA's non-US operations, particularly in Canada and EMEA. This new global accounting standard for insurance contracts fundamentally changes how RGA's international subsidiaries measure and report insurance liabilities, moving from historical cost to a prospective economic valuation method. It's a huge shift in the profit signature of reinsurance contracts.

The core challenge for RGA and its clients is managing the resulting volatility in reported earnings and the slower pattern of profit emergence. RGA's Canada team, for example, has been actively developing innovative capital solutions to help clients navigate the complexities of both IFRS 17 and the Canadian Life Insurance Capital Adequacy Test (LICAT) framework. This is a clear legal/accounting requirement driving a new product line for RGA.

The main concerns for IFRS 17 implementation, even after the initial effective date, remain:

• Cost and complexity of IT and data system upgrades.
• Increased volatility in reported earnings due to current assumption updates.
• Slower emergence of expected profits over time.

Regulatory pressure to simplify complex product disclosures and improve consumer clarity.

Regulators, especially in the US and Europe, are pushing hard for simplified, transparent product disclosures. The goal is to move past the fine print and ensure consumers actually understand what they are buying, particularly with complex products like annuities and asset-intensive reinsurance solutions. This pressure translates directly into legal and compliance costs for RGA.

RGA is responding by integrating behavioral science into its product development, aiming to improve customer comprehension in the insurance journey. This focus on clarity is a proactive defense against potential regulatory action and consumer litigation over misleading or complex terms. RGA's commitment to making financial protection accessible to all is a strategic alignment with this regulatory trend.

Stricter solvency regulations (e.g., Solvency II in Europe) influencing capital deployment strategy.

Stricter global solvency regimes, like Solvency II in Europe, the LICAT in Canada, and various risk-based capital (RBC) standards globally, are the bedrock of RGA's capital strategy. These rules dictate the minimum capital RGA must hold, which directly impacts its capacity for new business and its ability to return capital to shareholders. RGA explicitly manages its capital against a multiple capital frameworks-internal, regulatory, and rating agency-where the most stringent one is the binding constraint.

The influence of these regulations is quantifiable in RGA's 2025 financial planning and transactions. For the 12 months following Q2 2025, RGA estimated its deployable capital at approximately $3.4 billion, which is the capital available in excess of its target level considering all these regulatory frameworks. Furthermore, RGA projects its expected annual organic capital generation to be between $1.0 billion and $1.4 billion over time. This capital is deployed into transactions, such as the major $32 billion reinsurance transaction with Equitable Holdings, Inc. that closed in mid-2025, which required RGA to deploy $1.5 billion of capital at closing to support the block.

This is a capital-intensive business, and regulation is the gatekeeper.

Legal/Regulatory Factor	2025 RGA Impact/Action	Key Financial/Statistical Data
US State Data Privacy Laws	Mandatory IT/compliance upgrades across US segments.	8 new comprehensive state privacy laws effective in 2025 (e.g., NJ, MD, MN).
IFRS 17 (International Accounting)	Development of capital solutions for clients (e.g., Canada team).	Focus on mitigating earnings volatility and slow profit emergence in non-US P&L.
Solvency Regulations (Solvency II, LICAT, RBC)	Dictates capacity for new business and capital return strategy.	Estimated deployable capital (Q2 2025): approx. $3.4 billion. Expected annual organic capital generation: $1.0-$1.4 billion.
Product Disclosure Clarity	Investment in behavioral science and digital tools for consumer comprehension.	Proactive compliance to mitigate litigation risk over complex product terms.

Reinsurance Group of America, Incorporated (RGA) - PESTLE Analysis: Environmental factors

Increased frequency of catastrophic weather events raising property and casualty reinsurance costs.

While Reinsurance Group of America, Incorporated (RGA) is primarily a life and health reinsurer, the escalating frequency and severity of catastrophic weather events create a significant indirect risk, particularly through their investment portfolio and the overall stability of the broader reinsurance market. The first half of 2025 (1H 2025) saw global insured losses from natural catastrophes reach an estimated $100 billion, making it the second-highest 1H total on record. Total global economic losses rose to $162 billion in that same period.

This trend, driven by events like US severe convective storms (SCS), where insured losses hit $42 billion through September 2025, with average per-event costs 31% higher than the previous decade, pressures the entire financial ecosystem. For RGA, this translates into risk to the fixed-income assets and equities of property and casualty (P&C) insurers and related companies in their investment portfolio, as well as general market volatility. Climate change is explicitly listed as an emerging risk in RGA's 10-K, noting it could adversely affect asset prices and financial markets.

Growing investor and regulatory focus on Environmental, Social, and Governance (ESG) mandates.

The push for Environmental, Social, and Governance (ESG) compliance is no longer a niche concern; it is a core regulatory and investor mandate in 2025. RGA's Board of Directors maintains oversight of sustainability issues, with the Nominating and Governance Committee holding primary responsibility. This formal governance structure reflects the seriousness of the issue.

Regulators are also demanding more granular data. For example, the Office of the Superintendent of Financial Institutions (OSFI) in Canada is publishing key insights from the 2025 Climate Risk Returns, with updated returns effective in fall 2025, demonstrating a clear move toward mandatory, detailed climate risk reporting for insurers. This regulatory environment compels RGA to invest in sophisticated climate risk stress testing exercises, which they plan to deploy in 2025. You defintely need to track these regulatory shifts closely.

Pressure to divest from carbon-intensive assets in the investment portfolio.

RGA is actively managing its exposure to carbon-intensive assets, driven by investor pressure and its own strategic goals. The company has a clear, measurable goal within its 2022-2026 strategic plan: achieve a 20% reduction in Scope 1 and Scope 2 emissions from its public corporate bond portfolio by 2026, benchmarked against the 2021 baseline portfolio. They are ahead of the curve, having already delivered a cumulative reduction of 20% in portfolio carbon intensity over the two-year period ending December 31, 2023.

The company uses a Carbon Risk Management Committee to review investment decisions, especially for issuers with High and Severe Carbon Risk Ratings from third-party ESG rating agencies like Sustainalytics. This process can lead to restricting additional investment, reducing exposure, or exiting a position entirely. In 2025, RGA also made tangible, positive investments in climate action projects:

• Invested in the Heartland Methane Abatement and Land Restoration project in Oklahoma, permanently plugging orphaned oil and gas wells.
• Invested in the IESI-Trinity Timber Ridge Landfill Carbon Project, which captures and destroys landfill gas emissions.

Climate change models influencing long-term mortality and morbidity assumptions.

As a life and health reinsurer, RGA must incorporate climate change into its long-term actuarial models for mortality and morbidity (illness). They actively monitor climate change impacts for shifts in underlying trends and conduct scenario reviews.

Here's the quick math on the potential impact: RGA's own research, citing World Economic Forum (WEF) estimates, suggests that cumulatively by 2050, climate change could lead to an extra 14.5 million deaths worldwide under a 'middle of the road' emissions scenario. This translates to an estimated annual average global mortality rate increase of around 1% by 2050.

The impact is highly regional and risk-specific, forcing a more granular approach to pricing and reserving. For instance, RGA's analysis on Hong Kong estimated that increasing average temperatures could increase the mortality of an aging population by 4% by 2050, while reduced air pollution could offset this by a 3% reduction. This complex interplay demands sophisticated modeling to inform long-term pricing assumptions.

Climate Risk/Opportunity Metric (2025)	Value/Impact	Relevance to RGA
Global Insured Catastrophe Losses (1H 2025)	$100 billion	Indirect risk to investment portfolio and asset-intensive solutions.
US Severe Convective Storm Losses (YTD Sep 2025)	$42 billion	Indicates rising frequency/severity and market volatility impacting P&C sector assets.
Target Carbon Intensity Reduction (by 2026)	20% reduction (Scope 1 & 2, public corporate bond portfolio from 2021 baseline)	Direct, quantifiable ESG investment goal.
Estimated Global Mortality Rate Increase (by 2050)	Around 1% annual average	Core input for long-term mortality and longevity reinsurance pricing/reserving.

Finance: draft a 13-week cash view by Friday, focusing on the impact of a 50-basis-point rate change.