Reinsurance Group Of America (RGA)
NYSE:RGA
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Reinsurance Group
(NYSE:RGA)
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Rating:71Outperform
Price Target:
$233.00
▲(10.39% Upside)
Action:Reiterated
Date:05/09/26
RGA’s score is driven mainly by solid financial performance (strong cash flow and manageable leverage) and a constructive earnings call emphasizing strong operating results, healthy ROE, and meaningful excess capital with ongoing buybacks. Offsetting this are revenue/margin volatility in the financial statements and only moderate technical momentum. Valuation is a smaller detractor because the provided P/E is not usable and the dividend yield is modest.
Positive Factors
Strong cash generation
Sustained, above-net-income operating cash flow and a large FCF improvement provide durable liquidity to pay claims, fund new reinsurance transactions, and support capital returns. Reliable cash conversion enhances solvency buffers and reduces dependence on capital markets over medium term.
Negative Factors
Volatile revenue and compressed margins
Sharp top-line swings and notable gross margin compression reduce predictability of earnings and free cash flow. For a reinsurer, inconsistent premium flows and margin volatility complicate multi-year planning, capital allocation, and the ability to steadily compound returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained, above-net-income operating cash flow and a large FCF improvement provide durable liquidity to pay claims, fund new reinsurance transactions, and support capital returns. Reliable cash conversion enhances solvency buffers and reduces dependence on capital markets over medium term.
Read all positive factors
Reinsurance Group (RGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.09B
Dividend Yield1.76%
Average Volume (3M)349.83K
Price to Earnings (P/E)10.2
Beta (1Y)0.72
Revenue Growth18.66%
EPS Growth55.67%
CountryUS
Employees4,100
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)18.68
Shares Outstanding65,513,160
10 Day Avg. Volume421,361
30 Day Avg. Volume349,829
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.00
Price to Sales (P/S)0.59
P/FCF Ratio3.29
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda7.45
Forecast
1Y Price Target
$248.13Price Target Upside17.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)26.78
Revenue Forecast (FY)$26.75B
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 surviv...
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 revenu...
Reinsurance Group Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: strong adjusted operating income, favorable biometric claims experience, solid regional momentum (notably Asia and EMEA longevity), disciplined capital deployment ($338M in-force deployments, $50M buybacks) and healthy capital buffers ($2.4B excess). Headwinds are manageable: a higher-than-expected tax rate, modest shortfall versus variable investment income assumptions due to muted real estate sales, timing and FX impacts in some regions, and a subsidiary regulatory capital correction that reduced reported excess capital. Management emphasized selectivity, a strong pipeline, and confidence in delivering intermediate-term targets.Positive Updates
Strong Adjusted Operating Income and EPS
Reported pretax adjusted operating income of $611 million for the quarter and $6.97 per share after tax; management estimates run-rate EPS of approximately $6.70 per share.
Negative Updates
Higher-Than-Expected Effective Tax Rate
Effective tax rate for the quarter was 24.4% on adjusted operating income before taxes, above the expected range due to jurisdictional mix and an increase in the valuation allowance on tax credits.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted Operating Income and EPS
Reported pretax adjusted operating income of $611 million for the quarter and $6.97 per share after tax; management estimates run-rate EPS of approximately $6.70 per share.
Read all positive updates
Company Guidance
RGA’s guidance and related metrics for 2026 include an assumed 7% variable investment income return (vs. a 10%–12% long‑term target), a Q1 run‑rate EPS of ~$6.70 (Q1 pretax adjusted operating income $611M; after‑tax ~$6.97 per share), trailing‑12‑month adjusted operating ROE of 16.2% (ex‑notable items), $338M deployed into in‑force transactions in Q1, $50M of share repurchases in the quarter ($175M since buyback reinstatement), estimated excess capital of $2.4B and next‑12‑month deployable capital of $2.9B (with $400M planned to reduce financial leverage in 2026), a long‑term target to return 20%–30% of after‑tax operating earnings to shareholders, Q1 non‑spread book yield ex‑V.I.I. of 4.85% and new‑money yield of 5.64%, total company variable investment income modestly (~$8M) below the 7% annual expectation, private credit ~9% of the portfolio, book value per share ex‑AOCI/B36 of $167.92 (CAGR 9.9% since 2021), an effective tax rate of 24.4% on adjusted operating income, and favorable economic biometric claims experience of $117M in Q1 (total favorable since 2023 of $343M, with roughly $20M/year of that yet to be recognized).Reinsurance Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.59B | 22.79B | 22.04B | 18.39B | 15.88B | 16.06B |
| Gross Profit | 5.00B | 5.79B | 2.49B | 2.33B | 1.57B | 1.85B |
| EBITDA | 2.00B | 1.95B | 1.33B | 1.46B | 947.00M | 1.57B |
| Net Income | 1.23B | 1.18B | 717.00M | 902.00M | 517.00M | 1.17B |
Balance Sheet | ||||||
| Total Assets | 164.06B | 156.59B | 118.67B | 97.62B | 84.90B | 92.17B |
| Cash, Cash Equivalents and Short-Term Investments | 4.99B | 4.17B | 3.33B | 2.97B | 2.93B | 2.95B |
| Total Debt | 6.11B | 5.71B | 5.04B | 4.43B | 3.96B | 3.85B |
| Total Liabilities | 150.68B | 143.04B | 107.77B | 88.45B | 77.73B | 79.16B |
| Stockholders Equity | 13.29B | 13.46B | 10.82B | 9.08B | 7.08B | 13.01B |
Cash Flow | ||||||
| Free Cash Flow | 5.54B | 4.09B | 9.37B | 4.04B | 1.32B | 4.16B |
| Operating Cash Flow | 5.54B | 4.09B | 9.37B | 4.04B | 1.34B | 4.18B |
| Investing Cash Flow | -14.10B | -12.09B | -12.54B | -4.07B | -5.69B | -4.63B |
| Financing Cash Flow | 8.40B | 8.80B | 3.66B | 78.00M | 4.44B | 20.00M |
Reinsurance Group Technical Analysis
Positive
211.07
Price Trends
207.39
Positive
207.34
Positive
198.58
Positive
Market Momentum
0.86
Positive
50.47
Neutral
36.77
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 211.07 is above the 20-day moving average (MA) of 210.52, above the 50-day MA of 207.39, and above the 200-day MA of 198.58, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 36.77 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 37 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $594.67M | 4.06 | 11.68% | ― | 0.10% | 77.35% | |
77 Outperform | $14.08B | 5.04 | 13.31% | 2.37% | -0.63% | 147.66% | |
77 Outperform | $3.19B | 5.67 | 23.38% | ― | 20.32% | 98.92% | |
75 Outperform | $2.80B | 6.15 | 22.02% | ― | 22.94% | 317.95% | |
74 Outperform | $12.72B | 10.75 | 24.71% | 0.57% | -8.19% | 90.81% | |
71 Outperform | $14.09B | 10.22 | 9.47% | 1.76% | 18.66% | 55.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
RGA
Reinsurance Group
210.32
9.43
4.70%
EG
Everest Group
357.03
24.66
7.42%
GLRE
Greenlight Capital Re
17.97
4.43
32.72%
RNR
Renaissancere Holdings
302.03
59.20
24.38%
SPNT
SiriusPoint
23.69
4.36
22.56%
HG
Hamilton Insurance Group, Ltd. Class B
32.02
12.23
61.78%
Reinsurance Group Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Reinsurance Group Posts Strong Q1 2026 Earnings Growth
Positive
May 7, 2026
Reinsurance Group of America reported strong first-quarter 2026 results on May 7, 2026, with net income available to shareholders rising to $330 million, or $4.98 per diluted share, up from $286 million, or $4.27 per diluted share, a year earlier....
Business Operations and Strategy
Reinsurance Group to Fully Redeem 2056 Subordinated Debentures
Neutral
May 1, 2026
Reinsurance Group of America, Incorporated announced on May 1, 2026, that it will redeem in full its $400 million aggregate principal amount of 5.75% Fixed-to-Floating Rate Subordinated Debentures due 2056, which are listed on the NYSE under the s...
Business Operations and StrategyExecutive/Board Changes
Reinsurance Group CIO Resigns, Prompting Leadership Transition
Neutral
Mar 20, 2026
On March 16, 2026, Reinsurance Group of America, Incorporated disclosed that Executive Vice President and Chief Information Officer Mark Brooks had submitted his resignation, effective April 3, 2026. Brooks, who was identified as a named executive...
Business Operations and StrategyExecutive/Board Changes
Reinsurance Group Adds Peter Babej to Board
Positive
Mar 19, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
Reinsurance Group Completes $400 Million Subordinated Debt Offering
Positive
Mar 3, 2026
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, ...
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.