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Reinsurance Group (RGA)
NYSE:RGA
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Reinsurance Group
(NYSE:RGA)
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Rating:74Outperform
Price Target:
$211.00
▲(6.74% Upside)
Reinsurance Group of America scores well due to its strong financial performance and positive earnings call sentiment, highlighting record EPS and strategic growth initiatives. The technical analysis suggests a cautious outlook, while the valuation indicates reasonable pricing. The company's robust capital position and strategic achievements are significant strengths.
Positive Factors
Strong Revenue Growth
Consistent revenue growth reflects the company's ability to expand its market reach and enhance product adoption, supporting long-term stability.
Robust Capital Position
A strong capital position provides financial flexibility for strategic investments and risk management, ensuring long-term resilience.
Strategic Partnerships
Strategic partnerships enhance market presence and diversify risk, contributing to sustainable growth and competitive advantage.
Negative Factors
Decline in Free Cash Flow Growth
Declining free cash flow growth may limit the company's ability to invest in new opportunities and return capital to shareholders, impacting future growth.
Leadership Change
Leadership changes can disrupt strategic continuity and impact investment strategies, potentially affecting long-term business performance.
Higher General Expenses
Increased general expenses can pressure margins and reduce profitability, challenging the company's ability to sustain operational efficiency.
Reinsurance Group (RGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.68B
Dividend Yield1.84%
Average Volume (3M)431.13K
Price to Earnings (P/E)14.9
Beta (1Y)0.70
Revenue Growth2.10%
EPS Growth19.23%
CountryUS
Employees4,100
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)4.66
Shares Outstanding65,713,840
10 Day Avg. Volume369,198
30 Day Avg. Volume431,133
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)1.30
Price to Sales (P/S)0.64
P/FCF Ratio1.50
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit6.42
Enterprise Value/Ebitda11.62
Forecast
1Y Price Target
$250.00Price Target Upside26.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)21.24
Revenue Forecast (FY)$23.74B
Reinsurance Group Business Overview & Revenue Model
Company DescriptionReinsurance 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 MoneyRGA generates revenue primarily through its reinsurance contracts, where it assumes risk from primary insurers in exchange for premiums. The company earns money by collecting these premiums and investing the funds in various financial instruments to generate investment income. Key revenue streams include traditional life and health reinsurance, which involves underwriting risks associated with mortality and morbidity, as well as specialized products such as financial reinsurance. RGA also benefits from strategic partnerships with insurance companies, which help expand its market reach and diversify its risk portfolio. Additionally, the company engages in data analytics and product development, further enhancing its value proposition and driving revenue growth.
Reinsurance Group Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record operating EPS, significant regional growth, and successful capital deployment both in terms of new transactions and share repurchases. However, there were some challenges, particularly in the U.S. claims experience and lower variable investment income. Despite these, the overall sentiment is buoyed by strategic achievements and a strong capital position.Q3-2025 Updates
Positive Updates
Record Operating EPS
Reported record operating EPS of $6.37 per share, excluding notable items, above expectations.
Strong Regional Performance
Excellent performance in Asia Traditional, EMEA, and U.S. Financial Solutions segments.
Equitable Transaction Contribution
Positive contribution from the Equitable transaction, with results in line with expectations.
New Business and Premium Growth
Strong new business momentum with an 8.5% increase in Traditional business premiums year-to-date on a constant currency basis.
Capital Deployment and Share Repurchase
Deployed $2.4 billion of capital year-to-date and repurchased $75 million of common shares.
In-force Business Margin Increase
Value of in-force business margins increased by 16% over the past three quarters.
Strong Capital Position
Ended the quarter with estimated excess capital of $2.3 billion and deployable capital of $3.4 billion.
Investment Performance
New money rate remains well above the portfolio yield, providing a tailwind to overall book yield.
Negative Updates
U.S. Claims Experience
Modest unfavorable claims experience in the U.S. Traditional segment, with a $30 million negative impact on individual life.
Lower Variable Investment Income
Variable investment income was below expectations by around $40 million, primarily due to lower real estate joint venture activity.
Group Business Challenges
U.S. group business experienced a $20 million negative impact, with expectations of breakeven for the second half of the year.
Higher General Expenses
Corporate and Other segment reported an adjusted operating loss before tax of $58 million, unfavorable to expected run rate.
Company Guidance
During the Reinsurance Group of America's (RGA) third quarter 2025 earnings call, the company reported record operating earnings per share (EPS) of $6.37, excluding notable items. The company's financial performance exceeded expectations, driven by strong results in Asia Traditional, EMEA, and U.S. Financial Solutions. RGA highlighted a robust new business pipeline, with premium growth and significant capital deployment into in-force transactions, totaling $2.4 billion year-to-date. Additionally, RGA repurchased $75 million of common shares and maintained a strong capital position with estimated excess capital of $2.3 billion. The company's traditional business premiums increased by 8.5% year-to-date on a constant currency basis, and the value of in-force business margins rose by 16% over the past three quarters. The Equitable transaction, which closed during the quarter, contributed positively to earnings, aligning with expectations, and RGA continues to leverage strategic partnerships and innovation to drive future growth.Reinsurance Group Financial Statement Overview
Summary
Reinsurance Group demonstrates solid financial health with consistent revenue growth and strong cash generation. The balance sheet is stable with manageable leverage, and the company is efficiently managing its costs. However, there is room for improvement in net profit margins and sustaining free cash flow growth.Income Statement
Reinsurance Group has shown consistent revenue growth, with a TTM revenue growth rate of 2.86%. The gross profit margin is strong at 30.86%, indicating efficient cost management. However, the net profit margin is relatively low at 3.97%, suggesting room for improvement in profitability. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.75
Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio of 0.44, indicating prudent financial leverage. The return on equity (ROE) is moderate at 7.34%, showing decent profitability relative to shareholder equity. The equity ratio is strong, reflecting a solid capital structure and financial stability.80
Positive
Cash Flow
Operating cash flow is robust, but there is a slight decline in free cash flow growth at -1.57%. The free cash flow to net income ratio is excellent at 1.0, indicating strong cash generation relative to net income. However, the decline in free cash flow growth suggests potential challenges in sustaining cash flow levels.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.27B | 22.04B | 18.39B | 15.88B | 16.06B | 14.58B |
| Gross Profit | 2.91B | 2.49B | 2.33B | 1.57B | 1.85B | 1.54B |
| EBITDA | 1.61B | 1.33B | 1.46B | 947.00M | 1.57B | 772.00M |
| Net Income | 867.00M | 717.00M | 902.00M | 517.00M | 1.17B | 415.00M |
Balance Sheet | ||||||
| Total Assets | 152.00B | 118.67B | 97.62B | 84.90B | 92.17B | 84.66B |
| Cash, Cash Equivalents and Short-Term Investments | 17.57B | 5.50B | 63.66B | 10.75B | 63.78B | 11.77B |
| Total Debt | 5.73B | 5.04B | 4.43B | 4.36B | 3.85B | 4.36B |
| Total Liabilities | 138.94B | 107.77B | 88.45B | 77.73B | 79.16B | 70.30B |
| Stockholders Equity | 12.98B | 10.82B | 9.08B | 7.08B | 13.01B | 14.35B |
Cash Flow | ||||||
| Free Cash Flow | 4.84B | 9.37B | 4.04B | 1.34B | 4.16B | 3.29B |
| Operating Cash Flow | 4.84B | 9.37B | 4.04B | 1.34B | 4.18B | 3.32B |
| Investing Cash Flow | -12.99B | -12.54B | -4.07B | -5.69B | -4.63B | -2.68B |
| Financing Cash Flow | 7.61B | 3.66B | 78.00M | 4.44B | 20.00M | 1.25B |
Reinsurance Group Technical Analysis
Positive
197.67
Price Trends
189.74
Positive
189.38
Positive
191.07
Positive
Market Momentum
1.45
Negative
61.90
Neutral
66.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGA, the sentiment is Positive. The current price of 197.67 is above the 20-day moving average (MA) of 189.86, above the 50-day MA of 189.74, and above the 200-day MA of 191.07, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGA.
Reinsurance Group Risk Analysis
Reinsurance Group disclosed 40 risk factors in its most recent earnings report. Reinsurance Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reinsurance Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.65B | 6.16 | 17.62% | ― | 22.79% | -5.17% | |
78 Outperform | $12.15B | 7.32 | 14.98% | 0.60% | -3.96% | -48.08% | |
76 Outperform | $2.49B | 13.81 | 8.09% | ― | 7.87% | -4.68% | |
74 Outperform | $12.68B | 14.92 | 7.19% | 1.84% | 2.10% | 19.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $13.04B | 23.05 | 3.59% | 2.54% | 8.62% | -78.92% | |
63 Neutral | $466.14M | ― | -0.28% | ― | 5.83% | -101.38% |
* Financial Sector Average
RGA
Reinsurance Group
197.67
-9.75
-4.70%
EG
Everest Group
315.47
-38.68
-10.92%
GLRE
Greenlight Capital Re
13.91
-0.99
-6.64%
RNR
Renaissancere Holdings
265.29
-1.23
-0.46%
SPNT
SiriusPoint
21.83
6.35
41.02%
HG
Hamilton Insurance Group, Ltd. Class B
27.03
8.17
43.32%
Reinsurance Group Corporate Events
Executive/Board Changes
Reinsurance Group Announces CIO Retirement
Neutral
Dec 3, 2025
On December 1, 2025, Leslie Barbi, the Executive Vice President & Chief Investment Officer of Reinsurance Group of America, announced her retirement effective April 15, 2026. This decision marks a significant leadership change for the company, potentially impacting its investment strategies and stakeholder relations.
Business Operations and StrategyFinancial Disclosures
Reinsurance Group Reports Strong Q3 2025 Results
Positive
Oct 30, 2025
On October 30, 2025, Reinsurance Group of America reported its third-quarter results, highlighting a net income of $253 million, or $3.81 per diluted share, up from $156 million the previous year. The company achieved a record adjusted operating income of $6.37 per diluted share, excluding notable items, and deployed $1.7 billion into in-force block transactions, including a significant $1.5 billion transaction with Equitable Holdings. The company’s strong performance was driven by its diverse global platform and exclusive client arrangements, positioning it well for future growth and capital returns to shareholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.