RGA's balance sheet as of March 31, 2026 presents the profile typical of a large life reinsurer under a liquidation lens: a massive asset base ($164.1B total assets) dominated by long-duration, interest-rate-sensitive fixed maturity securities, offset by insurance liabilities that survive liquidation at face value with no discount. The structural asymmetry is pronounced and negative for equity recovery. Total liabilities stand at $150.7B versus total assets of $164.1B, implying reported book equity of approximately $13.4B. However, under liquidation haircuts the picture deteriorates materially. The AFS fixed maturity portfolio carries $114.98B amortized cost but only $107.33B fair value—a $7.65B gap—with gross unrealized losses of $8.5B (up from $7.0B at December 31, 2025). Approximately 12.8% of fixed maturities are Level 3, providing reduced price confidence. The AFS portfolio is the dominant asset class (75% of total invested assets), and under a forced-sale scenario, realizable values would be further pressured below current fair values, particularly for the $67.8B of securities maturing beyond 10 years. Liabilities—primarily $72.3B in future policy benefits, $38.7B in policyholder funds (interest-sensitive contract liabilities), $6.1B in long-term debt, and $53.5B in guaranteed investment contracts—extinguish at face value in liquidation, overwhelming any fair-value asset recovery. Long-term debt increased from $5.8B at December 31, 2025 to $6.1B at March 31, 2026, following issuance of $400M in 6.375% fixed-rate reset subordinated debentures on March 3, 2026. The $1.3B FHLB funding agreement liability (included in interest-sensitive contract liabilities) is collateralized by a blanket lien on CMBS, RMBS, and commercial mortgage loans; in liquidation, FHLB's recovery is senior to unsecured claimants on those pledged assets. Cash and equivalents of $5.0B recover at 100% but represent only 3.5% of total assets. Mortgage loans ($11.3B) and limited partnerships/real estate JVs ($4.1B) carry meaningful liquidation haircuts (50–70% and below). The net AOCI of positive $2.3B is driven by a large positive $8.7B component from LDTI shadow adjustments (AociLiabilityForFuturePolicyBenefitAfterTax), which partially offsets the $6.5B AFS unrealized loss component and would not survive a liquidation scenario. Filing discusses gross unrealized losses increasing $1.5B quarter-over-quarter in MD&A but does not separately tag the QoQ change in unrealized losses in XBRL—the directional detail comes from narrative only.
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