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Reinsurance Group
(NYSE:RGA)
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Rating:78Outperform
Price Target:
$281.00
▲(13.97% Upside)
Action:Reiterated
Date:08/08/26
The score is driven primarily by solid underlying financial strength (strong cash generation and a stable balance sheet) and supportive technical momentum (price above key moving averages with a positive MACD). The latest earnings call further strengthens the outlook with confident targets and strong quarterly execution, while the main offsets are weaker TTM profitability versus 2025 and some dependence on elevated investment/alternative returns.
Positive Factors
Revenue and premium growth
RGA is expanding its revenue base while maintaining premium growth across multiple markets. Continued top-line progression and a healthy new-business pipeline can support scale benefits, reinforce insurer relationships, and provide a durable foundation for earnings growth over the next several quarters.
Negative Factors
Profitability and margin compression
The deterioration in TTM margins and net income indicates that higher revenue has not translated proportionately into earnings. If weaker underwriting, claims or investment conditions persist, reduced profitability could constrain capital accumulation and make medium-term returns less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and premium growth
RGA is expanding its revenue base while maintaining premium growth across multiple markets. Continued top-line progression and a healthy new-business pipeline can support scale benefits, reinforce insurer relationships, and provide a durable foundation for earnings growth over the next several quarters.
Read all positive factors
Reinsurance Group (RGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.24B
Dividend Yield1.43%
Average Volume (3M)414.30K
Price to Earnings (P/E)11.5
Beta (1Y)0.66
Revenue Growth19.54%
EPS Growth97.85%
CountryUS
Employees4,300
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)23.02
Shares Outstanding65,301,670
10 Day Avg. Volume471,556
30 Day Avg. Volume414,304
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 Cap1.15
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda8.73
Forecast
1Y Price Target
$283.33Price Target Upside14.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)29.86
Revenue Forecast (FY)$26.99B
Reinsurance Group Business Overview & Revenue Model
Company Description
Reinsurance Group of America, Inc. (RGA) primarily operates within the reinsurance sector. The company delivers a comprehensive portfolio of life and health reinsurance products, spanning both individual and group coverages. These include diverse ...
How the Company Makes Money
RGA makes money primarily by reinsuring life and health insurance risks that are originally underwritten by primary insurers. Under reinsurance agreements, RGA assumes a defined portion of an insurer’s future claims and related obligations in exch...
Reinsurance Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized a record operating quarter driven by strong investment returns, favorable claims experience, healthy new business and disciplined capital deployment (nearly $500M deployed YTD, $2.2B excess capital, buybacks/dividend increase). Management highlighted durable strategic advantages, strong VII/alternative performance, and continued confidence in intermediate-term targets (8%-10% EPS growth, 13%-15% ROE). Lowlights were largely operational nuances and one-time benefits: measured traditional premium growth was modest due to deliberate in-force management, a $35M corporate segment loss, and a $71M one-time uplift. Additional concerns noted include rising asset-intensive activity (asset leverage), geopolitical uncertainty in Hong Kong/MCB, and the reliance on elevated investment/alternative returns to sustain outperformance. Overall, positives materially outweigh the challenges described.Positive Updates
Record Quarter and Key Financial Metrics
Pre-tax adjusted operating income of $761 million for the quarter; earnings of $8.89 per share after tax; adjusted operating return on equity of 18.4% (trailing 12 months, excluding AOCI and notable items).
Negative Updates
Traditional Premium Growth Impacted by In-Force Actions
Traditional premiums were modest overall: traditional premium growth was 2.2% (0.9% constant currency). Management noted in-force management actions reduced measured traditional premium growth (but improved earnings profile).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter and Key Financial Metrics
Pre-tax adjusted operating income of $761 million for the quarter; earnings of $8.89 per share after tax; adjusted operating return on equity of 18.4% (trailing 12 months, excluding AOCI and notable items).
Read all positive updates
Company Guidance
RGA reiterated confidence in its intermediate-term targets—8%–10% EPS growth, 13%–15% ROE and a 20%–30% payout ratio—while forecasting a 7% planned VII return for 2026 (though VII delivered ~15% annualized in Q2 and ~11% YTD); the quarter produced $761M pre-tax adjusted operating income ($8.89 per share after tax) and a trailing‑12‑month adjusted operating ROE of 18.4% (ex‑AOCI/notables). Management highlighted investment strength with a core portfolio yield of 4.96% and a new‑money rate of 6.02%, nearly $500M deployed into in‑force transactions year‑to‑date ($158M this quarter), $111M returned to shareholders this quarter ($50M buybacks, $61M dividends) and $2.2B of excess capital (with $400M planned to pay down debt in September), plus a 5.4% dividend increase; other metrics included total premiums ex‑PRT YTD up 10.5% (9.3% cc), traditional premiums +2.2% (0.9% cc), U.S. total premium ex‑PRT ~8%, capped cohort exposure down 25% since LDTI, book value per share ex‑AOCI/B36 $174.11 (10.1% CAGR since 2021), and $31M of economic claims favorability (≈$14M benefit to current earnings).Reinsurance Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
73
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.68B | 22.79B | 22.04B | 18.39B | 15.88B | 16.06B |
| Gross Profit | 6.47B | 5.79B | 2.49B | 2.33B | 1.57B | 1.85B |
| EBITDA | 2.27B | 1.95B | 1.33B | 1.46B | 947.00M | 1.57B |
| Net Income | 1.51B | 1.18B | 717.00M | 902.00M | 517.00M | 1.17B |
Balance Sheet | ||||||
| Total Assets | 167.12B | 156.59B | 118.67B | 97.62B | 84.90B | 92.17B |
| Cash, Cash Equivalents and Short-Term Investments | 5.67B | 4.17B | 3.33B | 2.97B | 2.93B | 2.95B |
| Total Debt | 5.71B | 5.71B | 5.04B | 4.43B | 3.96B | 3.85B |
| Total Liabilities | 153.33B | 143.04B | 107.77B | 88.45B | 77.73B | 79.16B |
| Stockholders Equity | 13.69B | 13.46B | 10.82B | 9.08B | 7.08B | 13.01B |
Cash Flow | ||||||
| Free Cash Flow | 5.20B | 4.09B | 9.37B | 4.04B | 1.32B | 4.16B |
| Operating Cash Flow | 5.20B | 4.09B | 9.37B | 4.04B | 1.34B | 4.18B |
| Investing Cash Flow | -14.87B | -12.09B | -12.54B | -4.07B | -5.69B | -4.63B |
| Financing Cash Flow | 9.63B | 8.80B | 3.66B | 78.00M | 4.44B | 20.00M |
Reinsurance Group Technical Analysis
Positive
246.55
Price Trends
251.34
Positive
237.94
Positive
222.00
Positive
Market Momentum
5.49
Negative
59.87
Neutral
78.13
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 246.55 is below the 20-day moving average (MA) of 258.06, below the 50-day MA of 251.34, and above the 200-day MA of 222.00, indicating a bullish trend. The MACD of 5.49 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $14.65B | 6.01 | 22.68% | 0.46% | -14.15% | 48.57% | |
80 Outperform | $3.58B | 6.18 | 21.19% | 6.99% | 17.41% | 57.09% | |
78 Outperform | $17.24B | 11.47 | 11.29% | 1.43% | 19.54% | 97.85% | |
78 Outperform | $15.28B | 8.49 | 12.43% | 2.01% | -5.12% | 146.14% | |
76 Outperform | $2.99B | 6.21 | 21.84% | 5.06% | 22.55% | 371.77% | |
68 Neutral | $492.88M | 10.07 | 7.28% | ― | -0.85% | 32.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
RGA
Reinsurance Group
263.94
77.76
41.76%
EG
Everest Group
398.60
62.78
18.69%
GLRE
Greenlight Capital Re
15.10
2.88
23.57%
RNR
Renaissancere Holdings
352.60
111.66
46.34%
SPNT
SiriusPoint
25.76
7.25
39.17%
HG
Hamilton Insurance Group, Ltd. Class B
36.32
13.29
57.67%
Reinsurance Group Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Reinsurance Group Reports Record Second-Quarter Profit Surge
Positive
Aug 6, 2026
On August 6, 2026, Reinsurance Group of America reported a record second quarter, with net income available to shareholders rising to $462 million, or $7.01 per diluted share, from $180 million, or $2.70 per share, a year earlier. Adjusted operati...
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.