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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on RGA

Reinsurance Group of America, Incorporated faces challenges, including higher costs and weaker ROE. The company's Q2 earnings missed estimates, with adjusted operating EPS and net income declining year-over-year. Aggressive growth and capital allocation strategies raise concerns. Despite a high-quality investment portfolio, leverage is rising. RGA sees strong investment income growth, but this is outweighed by negative factors. AM Best assigned a rating to a Malaysian subsidiary, reflecting very strong balance sheet strength. Q2 earnings release showed volatile results.

1.c. Company Highlights

2. RGA's Strong Q3 2025 Earnings: A Closer Look

RGA's third-quarter 2025 financial performance was impressive, with pretax adjusted operating income, excluding notable items, reaching $534 million, or $6.37 per share after tax, surpassing analyst estimates of $5.8. The company's diversified global platform continues to deliver significant long-term value, with a 14.2% adjusted operating return on equity, excluding notable items, for the trailing 12 months. Revenue growth was driven by an 8.5% year-to-date increase in Traditional business premiums on a constant currency basis.

Publication Date: Nov -04

📋 Highlights
  • Record Operating EPS:: Excluding notable items, operating EPS reached $6.37 per share, reflecting strong third-quarter performance.
  • TTM Adjusted ROE:: Trailing 12-month adjusted operating return on equity (excluding notable items) was 14.2%, exceeding expectations.
  • Capital Deployment:: $2.4 billion deployed year-to-date, including $1.5 billion for the Equitable transaction and $900 million across 20+ other transactions.
  • Traditional Premium Growth:: Year-to-date premium growth of 8.5% on a constant currency basis, driven by gains in U.S., EMEA, and APAC.
  • Anti-Obesity Medication Impact:: Mortality assumptions improved, projecting a $15 million annual run rate increase now, rising to $25 million by 2040.

Segment Performance

The company's Traditional business had excellent performance across regions, with significant growth in the U.S., EMEA, and APAC. The Equitable transaction, which closed during the quarter, is expected to contribute positively to future results. RGA's financial solutions business in the U.S. also performed well, contributing to the company's overall strong financial performance.

Capital Deployment and Management

RGA deployed $2.4 billion of capital year-to-date, including $1.5 billion into the Equitable transaction and $900 million into over 20 other transactions globally. The company's capital position remained strong, with estimated excess capital of $2.3 billion and deployable capital of $3.4 billion. As Tony Cheng mentioned, "We have deployed $2.4 billion of capital year-to-date... These are high-quality transactions that don't always make headlines due to their more modest size, but are equally important as they form a regular base of business that we can also rely on year in, year out."

Valuation and Growth Expectations

With a Price-to-Book Ratio of 0.92, RGA's valuation appears reasonable. Analysts estimate next year's revenue growth at 11.1%, indicating a positive outlook for the company. The actual EPS of $6.37 beat estimates, demonstrating the company's strong earnings momentum. As the company continues to execute its strategy and capitalize on growth opportunities, investors may expect sustained long-term value creation.

3. NewsRoom

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Edgestream Partners L.P. Grows Stock Holdings in Reinsurance Group of America, Incorporated $RGA

Dec -03

Source: defenseworld.net

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New Research from RGA: GLP-1s Expected to Reduce US Mortality by 3.5% Over the Next 20 Years

Nov -11

Source: businesswire.com

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RGA Announces Opening of First New York City Office at Park Avenue Tower

Nov -04

Source: businesswire.com

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Reinsurance Group of America, Incorporated (RGA) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Reinsurance Group Q3 Earnings Top Estimates on Solid Investment Income

Oct -31

Source: zacks.com

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Reinsurance Group Of America Remains A 'Show Me Story'

Oct -31

Source: seekingalpha.com

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Compared to Estimates, Reinsurance Group (RGA) Q3 Earnings: A Look at Key Metrics

Oct -31

Source: zacks.com

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Reinsurance Group (RGA) Tops Q3 Earnings and Revenue Estimates

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Traditional

Expected Growth: 3.5%

Traditional segment's 3.5% growth driven by increasing demand for life insurance products, expansion into new markets, and strategic partnerships. Additionally, RGA's expertise in underwriting and risk management, as well as its ability to offer customized solutions, contribute to its growth momentum.

Financial Solutions

Expected Growth: 4.5%

RGA's 4.5% growth driven by increasing demand for reinsurance products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's diversified portfolio, strong underwriting discipline, and effective risk management practices contribute to its growth. Furthermore, RGA's expertise in facultative reinsurance and its ability to provide customized solutions to clients also support its growth momentum.

Corporate and Other

Expected Growth: 2.5%

The 2.5% growth in Corporate and Other segment of Reinsurance Group of America, Incorporated is driven by increasing capital allocation to higher-return businesses, disciplined expense management, and strategic investments in digital capabilities, enabling the company to optimize its cost structure and improve operational efficiency.

7. Detailed Products

Term Life Reinsurance

Provides temporary life insurance coverage to individuals and groups, typically for a specified period of time.

Permanent Life Reinsurance

Offers lifetime coverage with a cash value component, allowing policyholders to borrow against the policy or withdraw cash value.

Group Life Reinsurance

Provides life insurance coverage to groups of people, often through employer-sponsored plans.

Accident and Health Reinsurance

Covers risks related to accidents, illnesses, and disabilities, providing financial protection to individuals and groups.

Longevity Risk Reinsurance

Helps insurers manage the risk of increasing life expectancy and the resulting impact on pension and annuity liabilities.

Capital Solutions

Provides customized capital management solutions to insurers, helping them optimize their capital structures.

Risk Settlement

Allows insurers to transfer risk and free up capital, providing a more efficient way to manage their risk portfolios.

8. Reinsurance Group of America, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Reinsurance Group of America, Incorporated is moderate due to the presence of alternative reinsurance products and services offered by competitors.

Bargaining Power Of Customers

The bargaining power of customers for Reinsurance Group of America, Incorporated is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Reinsurance Group of America, Incorporated is moderate due to the company's dependence on a few key suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for Reinsurance Group of America, Incorporated is low due to the high barriers to entry in the reinsurance industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Reinsurance Group of America, Incorporated is high due to the competitive nature of the reinsurance industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.77%
Debt Cost 7.41%
Equity Weight 67.23%
Equity Cost 8.35%
WACC 8.04%
Leverage 48.75%

11. Quality Control: Reinsurance Group of America, Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Main Street Capital

A-Score: 7.5/10

Value: 4.8

Growth: 6.0

Quality: 7.6

Yield: 9.0

Momentum: 8.0

Volatility: 9.3

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Enact Holdings

A-Score: 7.2/10

Value: 7.0

Growth: 4.6

Quality: 8.8

Yield: 7.0

Momentum: 6.0

Volatility: 10.0

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Golub Capital BDC

A-Score: 7.1/10

Value: 6.7

Growth: 5.8

Quality: 7.9

Yield: 10.0

Momentum: 2.5

Volatility: 10.0

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Hercules Capital

A-Score: 6.7/10

Value: 6.0

Growth: 3.6

Quality: 6.8

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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RGA

A-Score: 5.8/10

Value: 7.4

Growth: 6.4

Quality: 5.5

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Corebridge Financial

A-Score: 5.6/10

Value: 6.0

Growth: 3.3

Quality: 3.2

Yield: 8.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

192.76$

Current Price

192.76$

Potential

-0.00%

Expected Cash-Flows