Reinsurance Group (RGA) AI Stock Analysis

• Market Cap: $12.98B
• Dividend Yield: 1.76%
• Average Volume (3M): 418.73K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.75
• Revenue Growth: 2.10%
• EPS Growth: 19.23%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 7.75
• Shares Outstanding: 65,563,170
• 10 Day Avg. Volume: 324,884
• 30 Day Avg. Volume: 418,727
• PEG Ratio: 0.18
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 3.29
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $239.67
• Price Target Upside: 21.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 26.33
• Revenue Forecast (FY): $26.36B

• Rating: 73 Outperform
• Price Target: $224.00 ▲(13.14% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by solid financial performance (growth, improved profitability, and strengthening leverage) and a strong earnings-call outlook with clear medium-term targets and capital return plans. Valuation is supportive at a modest P/E with a dividend. These positives are tempered by weaker short-term technical momentum and the inherent volatility highlighted in margins, cash flows, and certain near-term operating items.

Positive Factors

Strengthened balance sheet

RGA’s material equity build and lower leverage increase solvency headroom and capacity to underwrite risk long term. Stronger capital supports regulatory ratios, larger treaty limits, and optionality to deploy capital into blocks or buybacks without pressuring financial flexibility.

Consistent high ROE and record earnings

Sustained ROE above targets and record EPS indicate disciplined underwriting and investment returns. Persistent above-target profitability signals competitive pricing and capital efficiency that can compound returns and support capital returns and reinvestment over multiple years.

Growing in-force value and premium momentum

Material increases in value of in-force and steady premium growth show durable business expansion and product demand across regions. Rising in-force value supports future fee and spread income, underwriting leverage, and long-term earnings visibility from recurring treaty cash flows.

Negative Factors

Volatile cash flows

Material year-to-year swings in operating and free cash flow reduce predictability of capital deployment and shareholder returns. For a reinsurer, lumpy cash generation complicates timing of in-force purchases, retrocession decisions and sustained buybacks without raising leverage.

Biometric claims and U.S. group health exit

Adverse biometric experience and the strategic exit from U.S. group health remove a premium stream and highlight underwriting risk concentration. These developments can depress near-term earnings and underscore the need for disciplined repricing across products to avoid recurring loss volatility.

Execution dependence on capital deployment and investment income

Medium-term EPS targets rely on continued capital deployment, successful block transactions, and modest variable investment income. Execution, timing and market conditions for such transactions create structural execution risk that could widen earnings variability if deployments or investment returns underperform assumptions.

Reinsurance Group Business Overview & Revenue Model

Company Description

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. The company also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, it develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. The company serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri.

How the Company Makes Money

RGA makes money primarily by assuming insurance risk from primary insurers in exchange for premiums and other consideration, and then managing the difference between the income it receives and the claims and benefits it ultimately pays. Key revenue and earnings drivers include: (1) Reinsurance premiums and related fees: RGA enters into treaties (e.g., yearly renewable term, coinsurance, and other structures) where insurers cede a portion of their policies or risks to RGA. RGA receives periodic premiums (or allowances/consideration structured under the treaty) for providing this coverage and services such as underwriting support, product design input, and administrative capabilities where applicable. (2) Investment income on invested assets: Like other reinsurers, RGA invests the assets backing its obligations (from premiums and other treaty cash flows) and earns interest and other investment returns. Investment income is a significant contributor to profitability because liabilities are typically paid over time, allowing assets to be invested. (3) Risk margin/underwriting profit: RGA’s core profit comes from pricing and managing mortality, morbidity, and longevity risks such that, over time, premiums and fees plus investment income exceed claims, benefits, and operating costs. Actual results depend on experience (e.g., deaths, disability/health claims, lapses) versus assumptions, as well as reinsurance pricing discipline and portfolio mix. (4) Financial solutions and capital-motivated transactions: RGA also earns income through transactions designed to help insurers manage reserves, capital, and balance-sheet objectives (often involving coinsurance or other structures). Economics can include margins embedded in treaty cash flows and returns generated from investing associated assets, with profitability influenced by transaction structure, cost of capital, and experience on the underlying risks. (5) Retrocession and risk management: RGA may cede portions of its assumed risk to other reinsurers (retrocession) to manage concentration and volatility. While retrocession is typically a cost, it can support steadier earnings and capital efficiency, indirectly affecting profitability. (6) Other service-related income tied to reinsurance: To the extent RGA provides ancillary services connected to its reinsurance relationships (e.g., underwriting or risk analytics support), related fees may contribute, but details and materiality vary by contract and are not always separately disclosed. Overall, RGA’s earnings are driven by the scale and mix of reinsurance it writes, the spread between investment returns and the cost of liabilities, and how actual insured experience compares with pricing assumptions, alongside disciplined capital management and risk transfer strategies.

Reinsurance Group Financial Statement Overview

Summary

Solid fundamentals with meaningful multi-year revenue growth and improved 2025 profitability, supported by strengthening equity and improving leverage (debt-to-equity ~0.42). Key risk is business volatility: margins and cash flows have been notably lumpy year-to-year, including a large 2025 cash flow pullback versus an unusually strong 2024.

Income Statement

Revenue has grown meaningfully over the last several years (from ~$14.6B in 2020 to ~$22.8B in 2025), with a sharp acceleration in the latest year (2025 revenue growth of 2.339). Profitability also improved in 2025, with net income rising to ~$1.18B and net margin improving to ~5.2% (vs. ~3.3% in 2024). Offsetting this, margins have been volatile across the period (net margin ranging from ~2.8% to ~7.3%), and the 2025 growth rate appears unusually high versus prior years, suggesting results may be less predictable year-to-year.

Balance Sheet

The balance sheet shows moderate leverage for the sector, with debt-to-equity improving to ~0.42 in 2025 from higher levels in 2022–2024 (~0.47–0.62). Equity has strengthened materially (to ~$13.5B in 2025 from ~$7.1B in 2022), supporting balance-sheet resilience as assets expanded significantly. Return on equity is solid but not consistently rising (about ~8.8% in 2025 vs. ~9.9% in 2023), indicating profitability is adequate but still somewhat uneven.

Cash Flow

Cash generation is generally strong, with operating cash flow positive each year and free cash flow matching operating cash flow in the provided data (e.g., ~$4.09B in 2025). However, cash flow is notably volatile: operating/free cash flow fell in 2025 versus 2024 (free cash flow growth of -15.458) after an unusually high 2024 level (~$9.37B). Also, the provided operating cash flow coverage ratio is 0.0 throughout, limiting what can be concluded about cash coverage from the dataset.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.79B	22.04B	18.39B	15.88B	16.06B
Gross Profit	5.79B	2.49B	2.33B	1.57B	1.85B
EBITDA	1.95B	1.33B	1.46B	947.00M	1.57B
Net Income	1.18B	717.00M	902.00M	517.00M	1.17B
Balance Sheet
Total Assets	156.59B	118.67B	97.62B	84.90B	92.17B
Cash, Cash Equivalents and Short-Term Investments	4.17B	3.33B	2.97B	2.93B	2.95B
Total Debt	5.71B	5.04B	4.43B	3.96B	3.85B
Total Liabilities	143.04B	107.77B	88.45B	77.73B	79.16B
Stockholders Equity	13.46B	10.82B	9.08B	7.08B	13.01B
Cash Flow
Free Cash Flow	4.09B	9.37B	4.04B	1.32B	4.16B
Operating Cash Flow	4.09B	9.37B	4.04B	1.34B	4.18B
Investing Cash Flow	-12.09B	-12.54B	-4.07B	-5.69B	-4.63B
Financing Cash Flow	8.80B	3.66B	78.00M	4.44B	20.00M

Reinsurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 197.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGA, the sentiment is Negative. The current price of 197.99 is below the 20-day moving average (MA) of 209.13, below the 50-day MA of 207.29, and above the 200-day MA of 195.55, indicating a neutral trend. The MACD of -2.92 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGA.

Reinsurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HG	82 Outperform	$2.83B	4.91	22.09%	―	22.79%	-5.17%
RNR	80 Outperform	$12.64B	4.70	24.24%	0.57%	-3.96%	-48.08%
EG	75 Outperform	$12.76B	8.83	10.61%	2.37%	8.62%	-78.92%
RGA	73 Outperform	$12.98B	11.38	9.48%	1.76%	2.10%	19.23%
GLRE	71 Outperform	$543.40M	6.59	11.10%	―	5.83%	-101.38%
SPNT	71 Outperform	$2.38B	5.55	20.87%	―	7.87%	-4.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Reinsurance Group Corporate Events

Reinsurance Group Adds Peter Babej to Board

On March 19, 2026, Reinsurance Group of America announced that its board had appointed former Citigroup executive Peter Babej as a director, effective April 1, 2026, for a term running until the 2026 annual meeting of shareholders. The appointment expands the board to 12 members and places a seasoned global financial services specialist at the heart of the reinsurer’s governance.

Babej, 62, brings more than three decades of experience across banking, insurance, and financial advisory, including roles as CEO of Citi Asia Pacific and Chairman and Interim Head of Banking before his 2024 retirement. His background in leading major strategic initiatives, particularly in Asia-Pacific operations and financial institutions, is expected to bolster RGA’s international expansion efforts and support its long-term strategic agenda.

RGA highlighted that Babej has no material related-party transactions with the company and that there were no special arrangements underpinning his appointment to the board. He will receive standard non-employee director compensation, and while he has not yet been assigned to specific board committees, his appointment signals RGA’s focus on strengthening expertise in capital markets and global insurance as it competes in the life and health reinsurance sector.

The most recent analyst rating on (RGA) stock is a Buy with a $264.00 price target. To see the full list of analyst forecasts on Reinsurance Group stock, see the RGA Stock Forecast page.

Reinsurance Group Completes $400 Million Subordinated Debt Offering

On March 3, 2026, Reinsurance Group of America completed a $400 million public offering of 6.375% Fixed-Rate Reset Subordinated Debentures due 2056, issued at par under its existing shelf registration and indenture structure. The unsecured notes, which are subordinated to senior and secured debt and rank pari passu with several of its other hybrid capital instruments, will pay semi-annual interest and may be redeemed at par during specified reset-related windows, at a make-whole price otherwise, or upon defined tax, regulatory capital, or rating agency events.

The transaction generated approximately $396 million in net proceeds before expenses, which the company plans to use for general corporate purposes, including potential refinancing of existing obligations. By adding a new long-dated subordinated layer that is effectively junior to subsidiary liabilities yet senior to certain junior securities, RGA further diversifies and extends its capital structure, reinforcing financial flexibility and maintaining established banking and underwriting relationships with major dealers involved in its credit facilities and capital markets activities.

The most recent analyst rating on (RGA) stock is a Hold with a $223.00 price target. To see the full list of analyst forecasts on Reinsurance Group stock, see the RGA Stock Forecast page.

Reinsurance Group posts strong Q4 2025 earnings results

On February 5, 2026, Reinsurance Group of America reported strong fourth-quarter and full-year 2025 results, with quarterly net income available to shareholders rising to $463 million, or $6.97 per diluted share, from $148 million, or $2.22 per diluted share, a year earlier, and adjusted operating income climbing to $515 million, or $7.75 per diluted share. For full-year 2025, net income increased to $1.18 billion, or $17.69 per diluted share, while adjusted operating income reached $1.52 billion, or $22.72 per diluted share, supported by robust investment performance, favorable foreign currency effects, and capital deployment that included $2.5 billion into in-force block transactions and $125 million of share repurchases; the board also declared a regular quarterly dividend of $0.93 per share effective February 3, 2026, underscoring confidence in the company’s capital position and reinforcing its trajectory toward intermediate-term financial targets and continued strong returns for shareholders.

The most recent analyst rating on (RGA) stock is a Hold with a $205.00 price target. To see the full list of analyst forecasts on Reinsurance Group stock, see the RGA Stock Forecast page.