- Book value per share increased to $156.63, representing a compounded annual growth rate of 9.7% since 2021.
- Consolidated net premiums increased 14% year-over-year, with traditional business premiums up 11% on a constant currency basis, driven by strong growth in the U.S., EMEA, and Asia.
- Excess capital increased to $3.8 billion at the end of Q2, or $2.3 billion pro forma for the Equitable transaction; deployable capital rose to $3.4 billion.
- Investment income was strong, with a nonspread portfolio yield of 4.98% (up 8 basis points from Q1) and total variable investment income of $105 million, driven by realizations in limited partnerships and real estate joint ventures.
- RGA reported operating EPS of $4.72 per share for Q2 2025, with an adjusted operating return on equity (ROE) of 14.3% for the trailing 12 months, in line with intermediate-term targets.
- The effective tax rate was 25.2% for the quarter, above the expected 23%-24%, due to valuation allowances on foreign tax credits, but full-year tax rate guidance remains unchanged.
- The quarter's results were below expectations due to large claims volatility in U.S. individual life and unfavorable claims in the healthcare excess business within U.S. Group.
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- Adjusted compensation and related costs of $662 million essentially flat to Q1 2025; technology, occupancy, and facility costs up 7% from Q1 2025.
- Adjusted diluted earnings per share of $2.24 for Q2 2025 is in line with prior quarter's $2.23 and Q2 2024 EPS of $2.26.
- Adjusted net revenue of $1.76 billion is flat to Q2 2024 and down marginally from Q1 2025.
- Adjusted operating expenses of just over $1.1 billion, up 1% from Q1 2025 and 3.7% from Q2 2024.
- Average equity AUM down 5% and overall average AUM down 2% from Q1 2025; effective fee rate lowered to 39.6 basis points due to mix shift and flows into lower-priced products.
- Net outflows of $14.9 billion driven by U.S. equities, timing of client redemptions, and rebalancing activity coinciding with equity market snapback.
- Positive net flows in fixed income, multi-asset, alternatives, and $2.5 billion net flows into ETF products.
- Returned over $395 million to stockholders in first half of 2025, including $286 million in dividends and $109 million in share buybacks during Q2.
- Comparable RevPAR growth in Q2 2025 was 0.1%, driven by a 1.1% increase in rate and an 80 basis point decline in occupancy.
- Corporate adjusted EBITDA was $90.5 million and adjusted FFO per share was $0.35.
- Food and beverage revenues increased 3.1%, with F&B profit growing over 6% and margins expanding by 105 basis points due to operational improvements.
- Free cash flow per share for the trailing 12 months increased approximately 4.5% to $0.63 per share.
- Group room revenue increased 0.8%, business transient revenue rose 4.2%, while leisure transient revenue declined 1.6%.
- Hotel EBITDA margins contracted 97 basis points overall but would have expanded 30 basis points excluding the Chicago tax increase.
- Operating expenses increased 0.7% excluding a large property tax increase in Chicago; wages and benefits rose 3.1%.
- Total RevPAR growth was 1.1%, boosted by a 4.2% increase in out-of-room revenues per occupied room, reaching a new quarterly high of $160 per occupied room.
- Adjusted EBITDA was $117 million, $6.5 million above midpoint.
- Adjusted FFO was $0.65 per share, $0.06 ahead of midpoint.
- Business interruption proceeds from LaPlaya insurance claims were $1.5 million above outlook, totaling $3.2 million.
- Ended Q2 with $267 million cash on hand, $49 million increase from last quarter; $640 million revolver availability.
- Energy costs decreased 2.1% due to efficiency efforts.
- Excluding Los Angeles and adjusting for last year's tax credits, same-property hotel EBITDA increased by $2.5 million year-over-year.
- Hotel expenses excluding fixed costs rose 1.7% year-over-year; expenses per occupied room declined 0.8%.
- Invested $21 million in portfolio during the quarter; on track for $65 million to $75 million in 2025.
- LaPlaya resort fully restored; full year BI income forecast increased to $11.5 million from $8.5 million.
- Los Angeles caused a $2.2 million EBITDA headwind, about $700,000 more than anticipated.
- Newport Harbor Island Resort outperformed expectations with a $1.8 million EBITDA beat.
- Out-of-room revenues at resorts rose 3.3%, led by food and beverage growth of 2.5%.
- Portland RevPAR climbed 10.4%, San Diego urban hotels posted 8.6% RevPAR growth.
- Property insurance renewal reduced premiums by roughly 10% with a 13% rate drop and 4% increase in insurable values.
- Resort total RevPAR increased 0.6% with a 1-point occupancy gain offsetting a nearly 3% ADR decline.
- Same-property hotel EBITDA totaled $115.8 million for the quarter, $1.8 million ahead of midpoint.
- Same-property total property RevPAR grew 1.3% year-over-year; excluding Los Angeles, RevPAR rose 2.7%.
- Same-property total revenues grew 1.3%, 2.7% excluding Los Angeles.
- San Francisco led with a 15.2% RevPAR increase, driven by occupancy gains and strong business and leisure demand.
- Urban portfolio RevPAR increased 1.7% overall and 4.1% excluding Los Angeles.
- Weighted average interest cost is 4.2%, with 90% to 96% of debt fixed.
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