Reinsurance Group of America's third quarter was marked by strong revenue growth driven by robust new business activity across Asia, EMEA, and the U.S. However, the market responded negatively to the results, largely due to a significant shortfall in non-GAAP earnings relative to analyst expectations. Management attributed the underperformance to unfavorable claims experience in the U.S. traditional segment and lower variable investment income, with CEO Tony Cheng emphasizing that, "claims experience on the individual life side was normal volatility" while group results were "approximately breakeven and in line with expectations."

Is now the time to buy RGA? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Reinsurance Group of America’s Q3 Earnings Call

• Wesley Carmichael (Autonomous Research) asked about the nature of U.S. claims volatility; CFO Axel Andre stated it was within normal historical variation and not driven by unusual items.
• John Barnidge (Piper Sandler) questioned the impact of anti-obesity drugs on mortality assumptions; Chief Risk Officer Jonathan Porter confirmed no material changes yet, but ongoing modeling supports future improvements.
• Jamminder Bhullar (JPMorgan) asked about the scope for further in-force actions; CEO Tony Cheng emphasized these remain a core discipline globally and are expected to continue contributing to earnings.
• Taylor Scott (Barclays) queried whether RGA is accepting lower returns to win business; Cheng firmly denied any change in risk appetite or discipline, highlighting a selective strategy focused on quality business.
• Suneet Kamath (Jefferies) pressed on the smoothing effect of LDTI accounting; Andre clarified that while smoothing generally occurs, capped cohorts introduce some volatility, and about 15% of the traditional book is in these categories.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of earnings contributions from the Equitable block as portfolio repositioning completes, (2) trends in claims experience and the success of repricing actions in the U.S. group segment, and (3) continued momentum in Asia and EMEA traditional business. We will also watch for further capital deployment into in-force transactions and updates on variable investment income recovery.

Reinsurance Group of America currently trades at $187.38, in line with $188.96 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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