Reinsurance Group (RGA) AI Stock Analysis

• Market Cap: $13.07B
• Dividend Yield: 1.88%
• Average Volume (3M): 452.67K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.57
• Revenue Growth: 19.29%
• EPS Growth: -19.91%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 85
• Industry: Insurance - Reinsurance
• EPS (TTM): 10.70
• Shares Outstanding: 66,085,770
• 10 Day Avg. Volume: 389,048
• 30 Day Avg. Volume: 452,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $236.90
• Price Target Upside: 19.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Reinsurance Group of America exhibits strong financial performance with robust revenue growth and cash flow. The company benefits from strategic partnerships and favorable earnings call highlights. However, technical indicators suggest caution with potential resistance at key moving averages. The stock is fairly valued with moderate P/E and dividend yield, making it a potentially stable investment with some short-term volatility risks.

Positive Factors

Earnings Impact

RGA expects the reinsurance deal to be accretive to 2025 earnings.

Reinsurance Deal

RGA announced a reinsurance deal with MFC for $1.9bn of LTC liabilities and $2.2bn of structured settlements.

Negative Factors

Liability Exposure

Adjustments for excess capital, liability exposures, and investments are considered in the analysis.

Reinsurance Group Business Overview & Revenue Model

Company Description

Reinsurance Group of America, Incorporated (RGA) is a leading global provider of traditional life and health reinsurance, financial solutions, and asset-intensive solutions. The company operates in various sectors, including individual mortality, longevity, asset management, and health reinsurance. RGA's core products and services revolve around offering risk management solutions to insurance companies, helping them to manage financial risk, improve capital efficiency, and enhance product offerings.

How the Company Makes Money

RGA makes money primarily through the sale of reinsurance contracts to insurance companies. Reinsurance involves the transfer of risk from the primary insurer to RGA in exchange for premiums. The company earns revenue from these premiums while assuming the underlying risks from the primary insurers' portfolios. RGA also generates income through investment activities, as it manages and invests the premiums collected to generate returns. Additionally, RGA provides financial solutions that help insurance companies manage their balance sheets, optimize capital, and achieve regulatory compliance. Significant partnerships with major insurance firms and strategic market positioning contribute to its earnings by enhancing its ability to offer tailored solutions and expand its market reach.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.00B	18.34B	16.26B	16.66B	14.60B
	Gross Profit
22.11B	17.48B	15.25B	15.72B	13.78B
	EBIT
-495.00M	0.00	940.00M	244.00M	193.00M
	EBITDA
691.00M	1.46B	947.00M	1.57B	772.00M
	Net Income Common Stockholders
717.00M	902.00M	517.00M	617.00M	415.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.33B	12.07B	55.98B	63.78B	60.37B
	Total Assets
118.67B	97.62B	84.71B	92.17B	84.66B
	Total Debt
5.04B	4.43B	4.36B	3.85B	3.96B
	Net Debt
1.72B	1.46B	1.43B	899.00M	553.00M
	Total Liabilities
107.77B	88.45B	80.47B	6.73B	70.30B
	Stockholders Equity
10.82B	9.08B	4.14B	13.01B	14.35B
Cash Flow		Free Cash Flow
9.37B	4.04B	1.32B	4.16B	3.29B
	Operating Cash Flow
9.37B	4.04B	1.34B	4.18B	3.32B
	Investing Cash Flow
-12.54B	-4.07B	-5.69B	-4.63B	-2.68B
	Financing Cash Flow
3.66B	78.00M	4.44B	20.00M	1.25B

Reinsurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 197.76
• 50DMA: Positive
• 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 Positive. The current price of 197.76 is above the 20-day moving average (MA) of 183.25, above the 50-day MA of 190.11, and below the 200-day MA of 208.61, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 56.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGA.

Reinsurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	80 Outperform	$11.83B	7.74	16.30%	0.66%	32.10%	-30.52%
RGA	78 Outperform	$13.07B	18.45	7.21%	1.88%	19.29%	-19.91%
CNA	74 Outperform	$13.07B	13.75	9.40%	3.75%	7.30%	-20.49%
SIGI	74 Outperform	$5.26B	26.83	7.48%	1.68%	13.37%	-35.09%
GL	74 Outperform	$9.95B	10.01	21.87%	0.84%	5.41%	16.60%
EG	73 Outperform	$16.65B	10.95	6.12%	2.37%	12.81%	-70.58%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

Reinsurance Group Corporate Events

Reinsurance Group Reports Strong Q1 2025 Earnings

On May 1, 2025, Reinsurance Group of America reported its first quarter results, highlighting a net income of $286 million, or $4.27 per diluted share, marking an increase from the previous year’s $210 million. Despite a 25% decrease in consolidated net premiums due to foreign currency effects and lower contributions from the U.S. Financial Solutions business, the company experienced favorable biometric claims and deployed $418 million into in-force transactions. The board declared a quarterly dividend of $0.89, payable on May 27, 2025.

Spark’s Take on RGA Stock

According to Spark, TipRanks’ AI Analyst, RGA is a Outperform.

RGA’s strong financial performance and robust earnings growth position the company well within the reinsurance industry. The recent earnings call and corporate partnership expansion further bolster its strategic outlook. However, the technical indicators suggest caution due to the current bearish trend. Overall, RGA is a resilient stock with promising long-term potential, though short-term price movements may be volatile.

To see Spark’s full report on RGA stock, click here.

Reinsurance Group Announces Board Member Departure

On February 25, 2025, George Nichols III announced he would not seek re-election to the Reinsurance Group of America’s board of directors at the upcoming annual meeting on May 21, 2025. His decision is not due to any disagreements with the company, its management, or board, indicating a smooth transition without operational disruptions.

Reinsurance Group Expands Partnership with Equitable Holdings

On February 24, 2025, RGA Reinsurance Company, a subsidiary of Reinsurance Group of America, announced an agreement with Equitable Holdings to reinsure 75% of Equitable’s in-force life insurance liabilities, totaling $32 billion. This transaction, expected to close in mid-2025, broadens RGA’s strategic partnership with Equitable and is anticipated to contribute significantly to RGA’s earnings and operational capabilities. The transaction will involve deploying $1.5 billion of capital and is expected to enhance RGA’s earnings per share with attractive returns.

Reinsurance Group Reports Q4 2025 Financial Results

On February 6, 2025, Reinsurance Group of America reported its fourth quarter and full year results, revealing a net income of $148 million for the fourth quarter, or $2.22 per diluted share, compared to $158 million, or $2.37 per share, in the previous year. The company deployed a record $1,676 million into in-force transactions over the year and increased its in-force business margins by $4.6 billion. Despite a favorable impact from foreign currency fluctuations, the full year’s net income of $717 million was below the previous year’s $902 million. However, adjusted operating income excluding notable items reached $1,510 million, indicating strong performance and growth in new business, supported by exclusive opportunities. The board declared a quarterly dividend of $0.89 per share, reflecting continued positive business conditions and financial optimism.