Reinsurance Group (RGA) AI Stock Analysis

• Market Cap: $12.89B
• Dividend Yield: 1.82%
• Average Volume (3M): 370.42K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.59
• Revenue Growth: 1.47%
• EPS Growth: -7.47%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Reinsurance
• EPS (TTM): 5.66
• Shares Outstanding: 66,085,970
• 10 Day Avg. Volume: 368,640
• 30 Day Avg. Volume: 370,417
• PEG Ratio: -1.22
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.21
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: 3.26
• 1Y Price Target: $236.63
• Price Target Upside: 21.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $228.00 ▲(16.62%Upside)

RGA's strong financial performance and strategic corporate events significantly enhance its stock score. The robust earnings call further supports the positive outlook. However, mixed technical indicators and fair valuation suggest a cautious approach. The company's ability to maintain growth and resilience amidst economic uncertainties remains a key strength.

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 makes money primarily through the premiums earned from providing reinsurance solutions to insurance companies. These premiums are paid by primary insurers in exchange for RGA taking on certain risks associated with their life, health, and group insurance policies. Additionally, RGA generates revenue through investment income, leveraging the premiums received to invest in various financial instruments. The company also engages in financial reinsurance transactions, which involve providing capital solutions to insurers, allowing them to manage their balance sheets more efficiently. Key revenue streams include traditional life reinsurance, longevity reinsurance, and financial solutions. Strategic partnerships and collaborations with primary insurers and reinsurers further enhance RGA's ability to deliver tailored solutions, contributing to its earnings.

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
	EBIT
1.08B	980.00M	1.42B	909.00M	823.00M	13.00M
	EBITDA
1.08B	1.33B	1.42B	909.00M	1.57B	0.00
	Net Income Common Stockholders
793.00M	717.00M	902.00M	517.00M	617.00M	415.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.02B	14.06B	2.97B	55.83B	63.78B	60.37B
	Total Assets
128.21B	118.67B	97.62B	84.90B	92.17B	84.66B
	Total Debt
5.73B	5.04B	4.43B	4.36B	3.85B	3.96B
	Net Debt
583.00M	1.72B	1.46B	1.43B	899.00M	553.00M
	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: Negative
• Last Price: 195.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 195.5 is below the 20-day moving average (MA) of 201.04, below the 50-day MA of 195.54, and below the 200-day MA of 206.76, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, 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
RNR	82 Outperform	$11.85B	7.76	16.30%	0.66%	32.10%	-30.52%
RGA	76 Outperform	$12.89B	16.48	7.60%	1.82%	1.47%	-7.47%
GL	74 Outperform	$9.86B	9.72	20.47%	0.90%	5.41%	16.60%
EG	71 Outperform	$14.16B	16.80	6.12%	2.40%	12.81%	-70.56%
SIGI	71 Outperform	$5.18B	23.25	7.48%	1.79%	13.37%	-35.09%
CNA	70 Outperform	$12.19B	13.72	8.98%	4.09%	6.34%	-28.19%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%

Reinsurance Group Corporate Events

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.

The most recent analyst rating on (RGA) stock is a Buy with a $239.00 price target. To see the full list of analyst forecasts on Reinsurance Group stock, see the RGA Stock Forecast page.

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.

The most recent analyst rating on (RGA) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on Reinsurance Group stock, see the RGA Stock Forecast page.

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.