Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt

FINANCING ACTIVITIES

Long-Term Debt

The Company’s long-term debt consists of the following as of December 31, 2024 and 2023 (dollars in millions):

	2024		2023
$400 million 3.95% Senior Notes due 2026	$	400	$	400
$600 million 3.90% Senior Notes due 2029	599		599
$600 million 3.15% Senior Notes due 2030	598		598
$400 million 6.00% Senior Notes due 2033	399		399
$650 million 5.75% Senior Notes due 2034	646		—
$100 million 4.09% Promissory Note due 2039	70		74
$500 million 7.125% Surplus Notes due 2043	450		475
$500 million 4.00% Surplus Notes due 2051	500		500
$700 million 7.125% Fixed-Rate Reset Subordinated Debentures due 2052	700		700
$400 million 5.75% Fixed-to-Floating Subordinated Debentures due 2056	400		400
$400 million Variable Rate Junior Subordinated Debentures due 2065	319		319
Subtotal	5,081		4,464
Unamortized issuance costs	(39)		(37)
Long-term Debt	$	5,042	$	4,427

RGA has entered into an interest rate swap on its Variable Rate Junior Subordinated Debentures that effectively fixes the interest rate on these securities at 4.82% until December 2037.

On May 13, 2024, the Company issued 5.75% fixed rate Senior Notes due 2034 with a face amount of $650 million, which will be used for general corporate purposes. Capitalized issuance costs were $6 million.

On June 8, 2023, the Company issued 6.00% fixed rate Senior Notes due 2033 with a face amount of $400 million, which was used to repay upon maturity the $400 million 4.70% Senior Notes that matured on September 15, 2023. Capitalized issuance costs were $4 million.

On March 23, 2023, Chesterfield Reinsurance Company, a subsidiary of RGA, issued 7.125% Surplus Notes due 2043, with a face amount of $500 million. Capitalized issue costs were $6 million. The loan is expected to be repaid over the term of the loan based on available funds and regulatory approval. As of December 31, 2024, the amount outstanding is $450 million.

On March 13, 2023, the Company entered into a new syndicated revolving credit facility with a five year term and an overall capacity of $850 million, replacing its existing $850 million syndicated revolving credit facility, which was scheduled to mature in August 2023. The Company may borrow cash and may obtain letters of credit in multiple currencies under this facility.

Certain of the Company’s debt agreements contain financial covenant restrictions related to, among others, liens, the issuance and disposition of stock of restricted subsidiaries, minimum requirements of consolidated net worth, maximum ratios of debt to capitalization and change of control provisions. A material ongoing covenant default could require immediate payment of the amount due, including principal, under the various agreements. Additionally, the Company’s debt agreements contain cross-default covenants, which would make outstanding borrowings immediately payable in the event of a material uncured covenant default under any of the agreements, including, but not limited to, non-payment of indebtedness when due for an amount in excess of the amounts set forth in those agreements, bankruptcy proceedings, or any other event that results in the acceleration of the maturity of indebtedness. As of December 31, 2024 and 2023, the Company had $5,081 million and $4,464 million, respectively, in outstanding borrowings under its debt agreements and was in compliance with all covenants under those agreements. As of December 31, 2024 and 2023, the average interest rate on long-term debt outstanding was 5.16% and 5.09%, respectively.

The ability of the Company to make debt principal and interest payments depends on the earnings and surplus of subsidiaries, investment earnings on undeployed capital proceeds, and the Company’s ability to raise additional funds. Future principal payments due on long-term debt, excluding discounts, as of December 31, 2024, were as follows (dollars in millions):

	Calendar Year
	2025		2026		2027		2028		2029		Thereafter
Long-term debt	$	4	$	404	$	4	$	4	$	604	$	4,071

Credit and Committed Facilities

The Company has obtained bank letters of credit in favor of various affiliated and unaffiliated insurance companies from which the Company assumes business. These letters of credit represent guarantees of performance under the reinsurance agreements and allow ceding companies to take statutory reserve credits. Certain of these letters of credit contain financial covenant restrictions. At December 31, 2024 and 2023, there were approximately $126 million and $54 million, respectively, of undrawn outstanding bank letters of credit in favor of third parties. Additionally, the Company utilizes letters of credit primarily to secure reserve credits when it retrocedes business to its affiliated subsidiaries. The Company cedes business to its affiliates to help reduce the amount of regulatory capital required in certain jurisdictions such as the U.S. and the UK. As of December 31, 2024 and 2023, $1.1 billion and $728 million, respectively, in undrawn letters of credit from various banks were outstanding, primarily backing reinsurance between the various subsidiaries of the Company. The banks providing letters of credit to the Company are included on the NAIC list of approved banks.

The Company maintains four committed credit facilities, a syndicated revolving credit facility and eight uncommitted letter of credit facilities. The committed credit facilities have a combined capacity of $950 million while the syndicated revolving credit facility is for $850 million and the remaining letter of credit facilities have a capacity of $1.5 billion. The Company may borrow cash and obtain letters of credit in multiple currencies under its syndicated revolving credit facility. The Company’s subsidiaries, RGA Reinsurance and RGA Americas, maintain a $200 million committed facility to provide contingent capital to RGA Reinsurance and RGA Americas. The following table provides additional information on the Company’s existing committed credit facilities as of December 31, 2024 and 2023 (dollars in millions):

			Amount Utilized (1) December 31,
Current Capacity		Maturity Date	2024		2023		Basis of Fees
$	100	May 2025	$	99	$	60	Fixed
150		April 2027	112		97		Fixed
200		August 2027	200		29		Fixed
850		March 2028	—		—		Credit rating
500		November 2028	294		99		Credit rating and utilization %

(1)Represents issued but undrawn letters of credit. There was no cash borrowed for the periods presented.

Fees associated with the Company’s other letters of credit are not fixed for periods in excess of one year and are based on the Company’s ratings and the general availability of these instruments in the marketplace. Total fees expensed associated with the Company’s letters of credit were $10 million, $6 million and $11 million for the years ended December 31, 2024, 2023 and 2022, respectively, and are included in policy acquisition costs and other insurance expenses.