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Reinsurance Group
(NYSE:RGA)
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Rating:75Outperform
Price Target:
$256.00
▲(21.29% Upside)
Action:Reiterated
Date:07/10/26
RGA scores well primarily on solid financial performance—especially strong cash generation and a stable capital structure—supplemented by constructive technical trends. The earnings call adds support through strong profitability/ROE and disciplined capital deployment, while valuation appears reasonable at a ~12x P/E with a modest dividend. The main constraint on the score is revenue and margin volatility and some near-term technical stretch signals.
Positive Factors
Strong cash generation
Consistently high operating cash flow and a sharp rise in free cash flow provide durable funding for reserves, capital deployment and share repurchases. For a reinsurer with long-duration liabilities, strong cash conversion cushions underwriting swings and funds strategic investments without relying on volatile capital markets.
Negative Factors
Revenue and margin volatility
Large swings in top-line and compressed gross margins reflect sensitivity to treaty timing, mix shifts and in-force actions. For a reinsurer, volatile premium flows and margin variability reduce predictability of earnings and cash flows, complicating capital planning and long-term return targets despite solid underlying cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently high operating cash flow and a sharp rise in free cash flow provide durable funding for reserves, capital deployment and share repurchases. For a reinsurer with long-duration liabilities, strong cash conversion cushions underwriting swings and funds strategic investments without relying on volatile capital markets.
Read all positive factors
Reinsurance Group (RGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.91B
Dividend Yield1.76%
Average Volume (3M)366.31K
Price to Earnings (P/E)12.3
Beta (1Y)0.69
Revenue Growth18.66%
EPS Growth55.67%
CountryUS
Employees4,100
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)18.68
Shares Outstanding65,513,160
10 Day Avg. Volume319,666
30 Day Avg. Volume366,315
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 Cap1.01
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda7.50
Forecast
1Y Price Target
$261.50Price Target Upside23.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)27.02
Revenue Forecast (FY)$26.88B
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: strong adjusted operating income, favorable biometric claims experience, solid regional momentum (notably Asia and EMEA longevity), disciplined capital deployment ($338M in-force deployments, $50M buybacks) and healthy capital buffers ($2.4B excess). Headwinds are manageable: a higher-than-expected tax rate, modest shortfall versus variable investment income assumptions due to muted real estate sales, timing and FX impacts in some regions, and a subsidiary regulatory capital correction that reduced reported excess capital. Management emphasized selectivity, a strong pipeline, and confidence in delivering intermediate-term targets.Positive Updates
Strong Adjusted Operating Income and EPS
Reported pretax adjusted operating income of $611 million for the quarter and $6.97 per share after tax; management estimates run-rate EPS of approximately $6.70 per share.
Negative Updates
Higher-Than-Expected Effective Tax Rate
Effective tax rate for the quarter was 24.4% on adjusted operating income before taxes, above the expected range due to jurisdictional mix and an increase in the valuation allowance on tax credits.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted Operating Income and EPS
Reported pretax adjusted operating income of $611 million for the quarter and $6.97 per share after tax; management estimates run-rate EPS of approximately $6.70 per share.
Read all positive updates
Company Guidance
RGA’s guidance and related metrics for 2026 include an assumed 7% variable investment income return (vs. a 10%–12% long‑term target), a Q1 run‑rate EPS of ~$6.70 (Q1 pretax adjusted operating income $611M; after‑tax ~$6.97 per share), trailing‑12‑month adjusted operating ROE of 16.2% (ex‑notable items), $338M deployed into in‑force transactions in Q1, $50M of share repurchases in the quarter ($175M since buyback reinstatement), estimated excess capital of $2.4B and next‑12‑month deployable capital of $2.9B (with $400M planned to reduce financial leverage in 2026), a long‑term target to return 20%–30% of after‑tax operating earnings to shareholders, Q1 non‑spread book yield ex‑V.I.I. of 4.85% and new‑money yield of 5.64%, total company variable investment income modestly (~$8M) below the 7% annual expectation, private credit ~9% of the portfolio, book value per share ex‑AOCI/B36 of $167.92 (CAGR 9.9% since 2021), an effective tax rate of 24.4% on adjusted operating income, and favorable economic biometric claims experience of $117M in Q1 (total favorable since 2023 of $343M, with roughly $20M/year of that yet to be recognized).Reinsurance Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.59B | 22.79B | 22.04B | 18.39B | 15.88B | 16.06B |
| Gross Profit | 5.00B | 5.79B | 2.49B | 2.33B | 1.57B | 1.85B |
| EBITDA | 2.00B | 1.95B | 1.33B | 1.46B | 947.00M | 1.57B |
| Net Income | 1.23B | 1.18B | 717.00M | 902.00M | 517.00M | 1.17B |
Balance Sheet | ||||||
| Total Assets | 164.06B | 156.59B | 118.67B | 97.62B | 84.90B | 92.17B |
| Cash, Cash Equivalents and Short-Term Investments | 4.99B | 4.17B | 3.33B | 2.97B | 2.93B | 2.95B |
| Total Debt | 6.11B | 5.71B | 5.04B | 4.43B | 3.96B | 3.85B |
| Total Liabilities | 150.68B | 143.04B | 107.77B | 88.45B | 77.73B | 79.16B |
| Stockholders Equity | 13.29B | 13.46B | 10.82B | 9.08B | 7.08B | 13.01B |
Cash Flow | ||||||
| Free Cash Flow | 5.54B | 4.09B | 9.37B | 4.04B | 1.32B | 4.16B |
| Operating Cash Flow | 5.54B | 4.09B | 9.37B | 4.04B | 1.34B | 4.18B |
| Investing Cash Flow | -14.10B | -12.09B | -12.54B | -4.07B | -5.69B | -4.63B |
| Financing Cash Flow | 8.40B | 8.80B | 3.66B | 78.00M | 4.44B | 20.00M |
Reinsurance Group Technical Analysis
Positive
211.07
Price Trends
210.70
Positive
209.93
Positive
202.43
Positive
Market Momentum
5.31
Negative
70.49
Negative
89.90
Negative
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 211.07 is below the 20-day moving average (MA) of 214.66, above the 50-day MA of 210.70, and above the 200-day MA of 202.43, indicating a bullish trend. The MACD of 5.31 indicates Negative momentum. The RSI at 70.49 is Negative, neither overbought nor oversold. The STOCH value of 89.90 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.69B | 7.55 | 13.31% | 2.37% | -0.63% | 147.66% | |
77 Outperform | $3.42B | 5.46 | 23.38% | ― | 20.32% | 98.92% | |
75 Outperform | $14.91B | 12.34 | 9.47% | 1.76% | 18.66% | 55.67% | |
74 Outperform | $13.74B | 5.18 | 24.71% | 0.57% | -8.19% | 90.81% | |
73 Outperform | $2.88B | 6.00 | 22.02% | ― | 22.94% | 317.95% | |
72 Outperform | $552.88M | 6.83 | 11.68% | ― | 0.10% | 77.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
RGA
Reinsurance Group
230.49
38.73
20.20%
EG
Everest Group
371.00
39.83
12.03%
GLRE
Greenlight Capital Re
16.38
3.07
23.07%
RNR
Renaissancere Holdings
311.17
75.10
31.81%
SPNT
SiriusPoint
24.40
6.00
32.61%
HG
Hamilton Insurance Group, Ltd. Class B
34.27
15.09
78.63%
Reinsurance Group Corporate Events
Business Operations and StrategyExecutive/Board Changes
Reinsurance Group Enhances CFO Compensation and Retention Package
Positive
Jul 9, 2026
Reinsurance Group of America has elevated Laura Cockrill, formerly its Chief Strategy Officer, to Executive Vice President and Chief Financial Officer effective June 22, 2026, reflecting a strategic emphasis on continuity and leadership developmen...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Reinsurance Group Appoints Maurice Tulloch to Board
Positive
Jul 1, 2026
On June 26, 2026, Reinsurance Group of America’s board appointed former Aviva Group CEO Maurice Tulloch as an independent director, effective July 1, 2026, expanding the board to thirteen members for a term running until the 2027 annual shar...
Business Operations and StrategyExecutive/Board Changes
Reinsurance Group Names Laura Cockrill as New CFO
Positive
Jun 22, 2026
On June 22, 2026, Reinsurance Group of America announced that Executive Vice President and Chief Strategy Officer Laura Cockrill had been appointed Chief Financial Officer, effective immediately. She succeeds Executive Vice President and CFO Axel ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Reinsurance Group Shareholders Approve Stock Plan and Governance
Positive
May 21, 2026
At its May 20, 2026 annual meeting, Reinsurance Group of America shareholders approved an amended and restated Employee Stock Purchase Plan, increasing authorized shares available under the plan to 400,000. The change is expected to enhance employ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Reinsurance Group Posts Strong Q1 2026 Earnings Growth
Positive
May 7, 2026
Reinsurance Group of America reported strong first-quarter 2026 results on May 7, 2026, with net income available to shareholders rising to $330 million, or $4.98 per diluted share, up from $286 million, or $4.27 per diluted share, a year earlier....
Business Operations and Strategy
Reinsurance Group to Fully Redeem 2056 Subordinated Debentures
Neutral
May 1, 2026
Reinsurance Group of America, Incorporated announced on May 1, 2026, that it will redeem in full its $400 million aggregate principal amount of 5.75% Fixed-to-Floating Rate Subordinated Debentures due 2056, which are listed on the NYSE under the s...
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.