Reinsurance Group of America (NYSE: RGA) priced an aggregate principal amount of $400 million of 6.375% fixed‑rate subordinated debentures due 2056, issuing the notes at 100.000% of par with a semi‑annual coupon. The offering, announced on February 24, 2026, is expected to close on March 3, 2026 and will provide net proceeds for general corporate purposes, including the refinancing of existing debt obligations.
The pricing follows a period of strong financial performance for RGA. In its Q4 2025 earnings report, the company posted net income available to shareholders of $463 million, or $6.97 per diluted share, compared with $148 million, or $2.22 per diluted share, in the prior‑year quarter. Adjusted operating income rose to $515 million, or $7.75 per diluted share, from $334 million, or $4.99 per diluted share, a year‑over‑year increase that underscores the company’s robust earnings trajectory. The new debt issuance is part of RGA’s strategy to maintain a strong capital base while supporting growth initiatives and potential acquisitions.
By issuing long‑term subordinated debentures, RGA diversifies its funding sources and manages interest‑rate risk. The transaction adds a fixed‑rate instrument to the balance sheet that can be used to finance future in‑force transactions or strategic investments without diluting equity. RGA’s capital ratios remain solid; the issuance is expected to have a limited impact on leverage and regulatory capital, preserving the company’s strong financial strength ratings from agencies such as A.M. Best.
RGA has a history of issuing subordinated debentures, including $400 million of 5.75% notes due 2056 in 2016 and $700 million of 7.125% notes due 2052 in 2022. The current terms reflect favorable market conditions for long‑term debt, and analysts have maintained positive ratings. Wells Fargo and Piper Sandler have recently raised their price targets for RGA, citing the company’s solid earnings and capital position as key factors.
The $400 million debenture issuance provides RGA with additional flexibility for future capital deployment and shareholder returns, reinforcing its long‑term financial strategy while supporting ongoing growth initiatives.
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