Investments

The growth-oriented philosophy of the Investments team and consistent expansion of its capabilities are central to RGA’s enterprise strategy. Through disciplined investment analysis, strong asset-liability expertise, and well-established risk management practices, RGA Investments fuels the organization’s financial strength and business growth.

The team’s proven approach focuses on strong underwriting and diligent, ongoing surveillance and management. RGA’s high-quality and diversified portfolio includes an emphasis on fixed-income assets. Holistic and proactive portfolio management allows for agility to capitalize on attractive opportunities in private lending and structured products, as well as public investment-grade credits aligned to liabilities. In 2023, RGA Investments’ credit performance and yields surpassed expectations, while ongoing expansion of the investment platform, including both internal capabilities and strategic external partnerships, laid the groundwork for future growth.

Investments’ critical contributions to priority projects and initiatives helped drive RGA’s success in 2023. The execution of RGA’s first U.S. pension risk transfer transaction showcased a seamless cross-functional effort marrying asset capabilities with competitive and successful liability assessments and pricing strategies. The establishment of Ruby Re, an insurance capital sidecar vehicle for which RGA serves as asset manager, underscored RGA’s unique strengths across all operations and capacity to perform extensive due diligence, earning the continued confidence of investors.

In a successful year for advancing the company’s long-term investment strategy, RGA reaffirmed its commitment to fostering a strong risk culture and innovating and improving every facet of operations. RGA Investments proactively repositioned its portfolio to sustain advantageous yields and protect against future rate fluctuations, while continuing to expand capabilities, upgrade infrastructure, and accelerate talent development.

Key strategic advances in 2023 included the following:

• The Investment Solutions team played a critical role in RGA’s entry into the U.S. pension risk transfer market, deepening a long-standing collaboration with RGA’s Global Financial Solutions business.
• ReCap, RGA’s commercial mortgage loan and real estate team, served as a cornerstone for investment success, proving essential in assessing risks for a range of client financial solutions and ending 2023 with $7.5 billion in commercial mortgage loan investments.
• Private Debt & Equity provided additional private asset class diversification and ended the year poised to pursue emerging opportunities.
• Global expansion of investment capabilities moved forward – particularly in Asia – including diversification in asset types under the management of the global credit team.
• Notable success in enhancing derivatives capabilities bolstered RGA’s ability to construct optimal portfolios amid new transactions and adapt swiftly and strategically to varying market conditions.
• Improvements in data and IT systems facilitated efficient information accessibility for investment professionals, allowing them to focus on analysis, strategy, and client solutions.
• A comprehensive knowledge management initiative streamlined the sharing of insights and educational resources across the company, making key learnings readily available and advancing talent development.

RGA’s responsible investment process integrates sustainability factors to inform strategy and objectives aimed at driving sustainable economic development and innovation. As fixed-income investors, the Investments team embeds various sustainability considerations throughout its fundamental research process to strengthen risk assessment, business-model analysis, and issuer engagement activities that inform decision-making around a company’s balance sheet strength, profitability, and long-term value creation. RGA pursues a responsible investment strategy across the breadth of asset classes within its portfolios, understanding that sustainability considerations are essential to evaluating an investment’s long-term viability, profit potential, and financial return.

In 2023, efforts to upgrade sustainability reporting infrastructure included new mechanisms for communicating progress against goals such as reducing carbon intensity. A committee dedicated to sustainability risk played a crucial role in navigating this complex area and fostering informed decisions based on engagements with investee companies. The U.K. Investments team helped lead development of asset stress testing, data optimization for sustainability-focused credit analysis, and an app that aggregates relevant sustainability risk data for credits, a testament to the team’s innovative approach.