Reinsurance Group (RGA)
NYSE:RGA
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Reinsurance Group
(NYSE:RGA)
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Rating:73Outperform
Price Target:
$224.00
▲(12.66% Upside)
Action:ReiteratedDate:03/20/26
The score is driven primarily by solid financial performance (growth, improved profitability, and strengthening leverage) and a strong earnings-call outlook with clear medium-term targets and capital return plans. Valuation is supportive at a modest P/E with a dividend. These positives are tempered by weaker short-term technical momentum and the inherent volatility highlighted in margins, cash flows, and certain near-term operating items.
Positive Factors
Strengthened balance sheet
RGA’s material equity build and lower leverage increase solvency headroom and capacity to underwrite risk long term. Stronger capital supports regulatory ratios, larger treaty limits, and optionality to deploy capital into blocks or buybacks without pressuring financial flexibility.
Negative Factors
Volatile cash flows
Material year-to-year swings in operating and free cash flow reduce predictability of capital deployment and shareholder returns. For a reinsurer, lumpy cash generation complicates timing of in-force purchases, retrocession decisions and sustained buybacks without raising leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened balance sheet
RGA’s material equity build and lower leverage increase solvency headroom and capacity to underwrite risk long term. Stronger capital supports regulatory ratios, larger treaty limits, and optionality to deploy capital into blocks or buybacks without pressuring financial flexibility.
Read all positive factors
Reinsurance Group (RGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.04B
Dividend Yield1.76%
Average Volume (3M)343.50K
Price to Earnings (P/E)11.4
Beta (1Y)0.74
Revenue Growth2.10%
EPS Growth19.23%
CountryUS
Employees4,100
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)7.75
Shares Outstanding65,563,170
10 Day Avg. Volume295,469
30 Day Avg. Volume343,502
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 Cap1.12
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda7.66
Forecast
1Y Price Target
$239.67Price Target Upside20.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)26.46
Revenue Forecast (FY)$26.33B
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:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial accomplishments — record EPS, ROE above target, significant increase in value of in-force business, strong regional growth (APAC +18%, EMEA +35%), successful capital deployment ($2.5B in 2025), and resumed share repurchases — while acknowledging discrete challenges, notably unfavorable Q4 biometric claims largely tied to U.S. group health and a strategic exit from group health lines. Management reiterated solid capital positions (excess capital $2.7B), clear intermediate-term targets (8%–10% EPS growth, 13%–15% ROE) and a reasoned plan for 2026 (run-rate EPS ~$24.75, $1.5B planned in-force deployment). Overall, positive operational momentum and balance sheet strength outweigh the manageable and disclosed challenges, though some near-term uncertainty remains around in-force action timing and investment income recognition.Positive Updates
Record Quarterly and Full-Year Earnings
Q4 operating EPS of $7.75 (second consecutive record quarter) and record 2025 operating EPS for the year.
Negative Updates
Unfavorable Biometric Claims in Quarter
Economic claims experience was unfavorable by $51 million in Q4 with a corresponding unfavorable current period financial impact of $53 million; roughly half driven by U.S. group business.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Full-Year Earnings
Q4 operating EPS of $7.75 (second consecutive record quarter) and record 2025 operating EPS for the year.
Read all positive updates
Company Guidance
RGA’s guidance highlighted a 2025 run‑rate adjusted operating EPS of about $24.75 per share and reiterated intermediate‑term targets of 8%–10% annual EPS growth and a 13%–15% ROE (trailing 12‑month adjusted operating ROE was 15.7%); management assumes 7% variable investment income for 2026 (vs. 6% in 2025 and a long‑term 10%–12% expectation), a 2026 tax rate of 22%–23% (23.8% in Q4; 22.8% for full‑year 2025), and run‑rate corporate & other losses of about $50M–$55M per quarter. Capital plans call for ~$1.5B of in‑force transaction deployment in 2026, $400M to reduce financial leverage, opportunistic share buybacks (20%–30% total payout of after‑tax operating earnings target) with $50M repurchased in Q4 and $125M since buybacks reinstated, and ending Q4 excess capital of $2.7B (next‑12‑month deployable capital ~$3.4B). Other numeric highlights incorporated into guidance: Q4 operating EPS $7.75; in‑force value up $6.6B (18%) in 2025 and >$11B over two years (~16% p.a.); in‑force management actions contributed $95M in Q4 and $135M in 2025 (vs. $225M in 2024, $75M in 2023) but are expected to be more limited in 2026; Equitable transaction earnings were $60M–$70M in H2 2025 and are expected to be $160M–$170M in 2026; Q4 economic claims were unfavorable ~$51M (financial impact ~$53M) though since 2023 economic claims have been favorable ~$226M; and the firm expects the retrocession vehicle to be fully deployed by mid‑2026.Reinsurance Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.79B | 22.04B | 18.39B | 15.88B | 16.06B |
| Gross Profit | 5.79B | 2.49B | 2.33B | 1.57B | 1.85B |
| EBITDA | 1.95B | 1.33B | 1.46B | 947.00M | 1.57B |
| Net Income | 1.18B | 717.00M | 902.00M | 517.00M | 1.17B |
Balance Sheet | |||||
| Total Assets | 156.59B | 118.67B | 97.62B | 84.90B | 92.17B |
| Cash, Cash Equivalents and Short-Term Investments | 4.17B | 3.33B | 2.97B | 2.93B | 2.95B |
| Total Debt | 5.71B | 5.04B | 4.43B | 3.96B | 3.85B |
| Total Liabilities | 143.04B | 107.77B | 88.45B | 77.73B | 79.16B |
| Stockholders Equity | 13.46B | 10.82B | 9.08B | 7.08B | 13.01B |
Cash Flow | |||||
| Free Cash Flow | 4.09B | 9.37B | 4.04B | 1.32B | 4.16B |
| Operating Cash Flow | 4.09B | 9.37B | 4.04B | 1.34B | 4.18B |
| Investing Cash Flow | -12.09B | -12.54B | -4.07B | -5.69B | -4.63B |
| Financing Cash Flow | 8.80B | 3.66B | 78.00M | 4.44B | 20.00M |
Reinsurance Group Technical Analysis
Negative
198.82
Price Trends
207.58
Negative
201.17
Negative
195.62
Positive
Market Momentum
-2.59
Positive
38.47
Neutral
48.58
Neutral
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 198.82 is below the 20-day moving average (MA) of 205.17, below the 50-day MA of 207.58, and above the 200-day MA of 195.62, indicating a neutral trend. The MACD of -2.59 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.84B | 4.91 | 22.09% | ― | 22.79% | -5.17% | |
80 Outperform | $12.71B | 4.70 | 24.24% | 0.57% | -3.96% | -48.08% | |
73 Outperform | $13.04B | 11.38 | 9.48% | 1.76% | 2.10% | 19.23% | |
72 Outperform | $12.84B | 8.83 | 10.61% | 2.37% | 8.62% | -78.92% | |
71 Outperform | $569.57M | 6.59 | 11.10% | ― | 5.83% | -101.38% | |
71 Outperform | $2.43B | 5.55 | 20.87% | ― | 7.87% | -4.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
RGA
Reinsurance Group
198.82
5.52
2.85%
EG
Everest Group
317.93
-36.69
-10.35%
GLRE
Greenlight Capital Re
16.76
3.21
23.69%
RNR
Renaissancere Holdings
292.21
53.67
22.50%
SPNT
SiriusPoint
20.81
3.52
20.36%
HG
Hamilton Insurance Group, Ltd. Class B
28.61
9.24
47.69%
Reinsurance Group Corporate Events
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, ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Reinsurance Group posts strong Q4 2025 earnings results
Positive
Feb 5, 2026
On February 5, 2026, Reinsurance Group of America reported strong fourth-quarter and full-year 2025 results, with quarterly net income available to shareholders rising to $463 million, or $6.97 per diluted share, from $148 million, or $2.22 per di...
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.