Reinsurance Group (RGA) AI Stock Analysis

• Market Cap: $12.79B
• Dividend Yield: 1.88%
• Average Volume (3M): 471.89K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.68
• Revenue Growth: 1.53%
• EPS Growth: -10.27%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Reinsurance
• EPS (TTM): 4.72
• Shares Outstanding: 66,093,750
• 10 Day Avg. Volume: 342,160
• 30 Day Avg. Volume: 471,888
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 17.75
• 1Y Price Target: $241.22
• Price Target Upside: 26.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $210.00 ▲(9.88% Upside)

Reinsurance Group of America shows strong financial performance with robust cash flow and strategic corporate events enhancing growth prospects. However, technical indicators suggest caution with potential overbought conditions, and recent earnings call highlighted operational challenges. The stock is fairly valued, offering moderate income potential.

Positive Factors

Management Strategy

Management noted that the new reinsurance deal was funded by existing internal capital, showing strong internal resource management.

Reinsurance Deal

RGA announced a reinsurance deal with MFC for $1.9bn of LTC liabilities and $2.2bn of structured settlements, expected to be accretive to earnings.

Negative Factors

Valuation Concerns

The price target implies a blended P/E multiple of 10.6x, which may raise concerns about valuation among investors.

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 generates revenue primarily through the premiums it receives from ceding insurers for the reinsurance coverage it provides. The company underwrites reinsurance contracts, which can encompass life, health, and financial products, allowing ceding insurers to transfer a portion of their risk in exchange for premium payments. Key revenue streams include traditional life reinsurance, health reinsurance, and financial reinsurance, with the latter involving products like longevity risk and capital management solutions. RGA also earns investment income from the premiums it holds before claims are paid out, as well as from its investment portfolio. Strategic partnerships with various insurance firms globally enhance RGA's market position and contribute to its earnings by broadening its customer base and diversifying its risk exposure.

Reinsurance Group Financial Statement Overview

Summary

Reinsurance Group demonstrates strong revenue growth and cash generation capabilities, providing a solid financial foundation. Despite some pressure on net margins and ROE, the company maintains a stable balance sheet and impressive cash flow performance, suggesting resilience and the ability to capitalize on revenue growth.

Income Statement

The income statement shows a strong revenue growth with a TTM revenue increase of 19.75% compared to the previous year. The gross profit margin is excellent at 96.20% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 3.27% from 4.92% in the previous year, highlighting some profitability challenges. The EBIT margin stands at 5.21%, with the EBITDA margin reduced to 2.09% due to increased expenses.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.47, which is reasonable for the insurance industry. The company's equity ratio is healthy at 9.12%, though there's room for improvement. Return on equity has decreased to 6.63%, down from last year's 9.93%, reflecting a decline in efficiency in generating profits from shareholders' equity.

Cash Flow

Cash flow metrics are robust, with a significant operating cash flow increase to $7.77 billion in TTM. Free cash flow growth is strong at 92.16% year-over-year, indicating excellent cash generation. The operating cash flow to net income ratio is high at 10.84, demonstrating efficient conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.05B	22.00B	18.34B	16.26B	16.66B	14.60B
Gross Profit	15.39B	22.11B	17.48B	15.25B	15.72B	13.78B
EBITDA	1.08B	1.33B	1.42B	909.00M	1.57B	0.00
Net Income	793.00M	717.00M	902.00M	517.00M	617.00M	415.00M
Balance Sheet
Total Assets	128.21B	118.67B	97.62B	84.90B	92.17B	84.66B
Cash, Cash Equivalents and Short-Term Investments	7.91B	5.50B	63.66B	55.98B	63.78B	60.37B
Total Debt	5.73B	5.04B	4.43B	4.36B	3.85B	3.96B
Total Liabilities	116.72B	107.77B	88.45B	77.73B	79.16B	70.30B
Stockholders Equity	11.40B	10.82B	9.08B	7.08B	13.01B	14.35B
Cash Flow
Free Cash Flow	5.06B	9.37B	4.04B	1.34B	4.16B	3.29B
Operating Cash Flow	5.06B	9.37B	4.04B	1.34B	4.18B	3.32B
Investing Cash Flow	-10.52B	-12.54B	-4.07B	-5.69B	-4.63B	-2.68B
Financing Cash Flow	4.72B	3.66B	78.00M	4.44B	20.00M	1.25B

Reinsurance Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 191.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGA, the sentiment is Neutral. The current price of 191.11 is above the 20-day moving average (MA) of 187.13, below the 50-day MA of 191.93, and below the 200-day MA of 201.07, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGA.

Reinsurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	84 Outperform	$11.55B	6.32	18.75%	0.64%	23.19%	-22.42%
HG	82 Outperform	$2.40B	6.39	15.86%	―	28.86%	-11.22%
RGA	73 Outperform	$12.79B	16.84	7.07%	1.88%	1.53%	-10.27%
EG	72 Outperform	$14.32B	17.92	5.52%	2.34%	10.40%	-71.67%
Sector *	68 Neutral	$17.62B	12.00	10.34%	3.77%	9.67%	0.49%
SPNT	65 Neutral	$2.18B	20.82	4.82%	―	-4.56%	-55.48%
GLRE	63 Neutral	$450.73M	12.03	5.82%	―	2.18%	-41.11%

Reinsurance Group Corporate Events

Reinsurance Group Enters Major Reinsurance Agreements

On July 31, 2025, RGA Reinsurance Company, a subsidiary of Reinsurance Group of America, entered into reinsurance agreements with subsidiaries of Equitable Holdings, Inc., covering a 75% quota share of approximately $32 billion in life insurance liabilities. This transaction is part of a master agreement announced in February 2025. The company also reported its second-quarter results, noting a net income of $180 million, or $2.70 per diluted share, and adjusted operating income of $315 million, or $4.72 per diluted share. While the second quarter results were below expectations due to claims volatility, RGA highlighted strong new business and balance sheet optimization efforts, with an increase in estimated excess capital to $3.8 billion. The company remains optimistic about its growth prospects and continues to focus on its strategic initiatives.

Reinsurance Group Completes $1 Billion P-Caps Transaction

On June 4, 2025, Reinsurance Group of America, Incorporated completed a significant transaction involving the issuance and sale of $1 billion in Pre-Capitalized Trust Securities (P-Caps) through Omnis Funding Trust. This strategic move provides the company with contingent liquidity for general corporate purposes and involves a complex arrangement with various financial institutions. The transaction includes the issuance of Senior Notes and a facility agreement, which outlines conditions under which the company can exercise rights related to these notes. This development is poised to impact the company’s financial operations and market positioning by enhancing its liquidity management capabilities.

Reinsurance Group Approves Stock Plan Amendments at Meeting

On May 21, 2025, Reinsurance Group of America held its annual shareholders meeting where amendments to the Flexible Stock Plan and Phantom Stock Plan for Directors were approved, increasing the number of shares authorized for issuance. The amendments do not affect any previous awards to the company’s executives. Additionally, shareholders voted on the election of eleven directors and other proposals, including the approval of executive compensation and the ratification of Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2025. The meeting saw participation from approximately 92% of the company’s outstanding voting shares.