Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Reinsurance Group (RGA - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Reinsurance Group currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for RGA that show why this reinsurance company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For RGA, shares are up 3.15% over the past week while the Zacks Insurance - Life Insurance industry is up 2.87% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 1.02% compares favorably with the industry's 0.51% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Reinsurance Group have increased 18% over the past quarter, and have gained 29.52% in the last year. In comparison, the S&P 500 has only moved 4.72% and 20.24%, respectively.
Investors should also take note of RGA's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now RGA is averaging 310,141 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with RGA.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost RGA's consensus estimate, increasing from $26.86 to $29.22 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that RGA is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Reinsurance Group on your short list.
NEW YORK--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Laura Cockrill, Chief Financial Officer, and Ron Herrmann, Chief Commercial Officer and Executive Vice President of Americas and EMEA, will participate in a fireside chat at the 2026 Barclays Annual Global Financial Services Conference on Tuesday, Sept. 15, 2026, from 8:15 a.m. to 8:55 a.m. Eastern Time. A live webcast of this event will be accessib.
Have you been paying attention to shares of Reinsurance Group (RGA - Free Report) ? Shares have been on the move with the stock up 6.8% over the past month. The stock hit a new 52-week high of $253.34 in the previous session. Reinsurance Group has gained 24% since the start of the year compared to the 7.4% gain for the Zacks Finance sector and the 18.6% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Reinsurance Group reported EPS of $8.89 versus consensus estimate of $6.51 while it beat the consensus revenue estimate by 0.95%.
For the current fiscal year, Reinsurance Group is expected to post earnings of $29.22 per share on $26.88 in revenues. This represents a 28.61% change in EPS on a 12.28% change in revenues. For the next fiscal year, the company is expected to earn $29.22 per share on $28.2 in revenues. This represents a year-over-year change of 0.02% and 4.91%, respectively.
Valuation MetricsThough Reinsurance Group has recently hit a 52-week high, what is next for Reinsurance Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Reinsurance Group has a Value Score of A. The stock's Growth and Momentum Scores are F and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 10.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Reinsurance Group an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Reinsurance Group currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Reinsurance Group fits the bill. Thus, it seems as though Reinsurance Group shares could have a bit more room to run in the near term.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Reinsurance Group (RGA - Free Report) Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
RGA is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. RGA has a Momentum Style Score of B, and shares are up 6.8% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.34 to $29.22 per share. RGA boasts an average earnings surprise of +22.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RGA should be on investors' short list.
Key Takeaways Reinsurance Group's U.S. strategic underwriting programs are on track to double year over year. Premiums excluding pension risk transfer grew 9.3% year to date in constant currency. A 4.96% portfolio yield, $2.2B excess capital and planned debt repayment support capital efficiency. Reinsurance Group of America, Incorporated (RGA - Free Report) hit a 52-week high of $253.34 on Sept. 2. Shares closed at $252.37 after gaining 27.7% in the past year, outperforming the industry, the sector and the Zacks S&P 500 composite.
Reinsurance Group has outperformed its peers, including Primerica, Inc. (PRI - Free Report) , Lincoln National Corporation (LNC - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) . Shares of PRI, LNC and BHF have gained 7.2%, 2.1% and 21.2%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $16.48 billion, the average number of shares traded in the last three months was 0.3 million.
RGA Trading Above 50-Day and 200-Day Moving AveragesShares of Reinsurance Group are trading above the 50-day and 200-day simple moving averages (SMA) of $235.70 and $212.67, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
RGA Shares are AffordableReinsurance Group shares are trading at a price-to-book value of 1.2X, lower than the industry average of 2.23X, the Finance sector’s 4.42X and the Zacks S&P 500 Composite’s 7.15X. Its pricing, at a discount to the industry average, gives a better entry point for investors. The life insurer has a Value Score of A.
RGA’s Growth Projection EncouragesThe Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 28.6%. The consensus estimate for revenues is pegged at $26.88 billion, implying a year-over-year improvement of 12.2%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 0.02% and 4.9%, respectively, from the corresponding 2026 estimates.
Earnings have grown by 26.7% over the past five years, outpacing the industry average of 4.9%.
Average Target Price for RGA Suggests UpsideBased on short-term price targets offered by nine analysts, the Zacks average price target is $272.33 per share. The average suggests a potential 9.93% upside from the last closing price.
Image Source: Zacks Investment Research
Reinsurance Group’s Return on Invested CapitalIts return on invested capital (ROIC) has increased every year, reflecting RGA’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 6.51%, higher than the industry average of 0.6%.
Key Points to Note for RGAReinsurance Group is a leader in the U.S. and Latin American traditional market and continues to expand through underwriting services, product capabilities and in-force solutions. In the second quarter of 2026, strategic underwriting program volumes in the United States were on track to double from the prior year, and management said these programs can directly generate reinsurance opportunities. Premiums excluding pension risk transfer grew 9.3% year to date in constant currency, while recent new business continues to contribute to earnings as expected.
Reinsurance Group maintains a sizable Canadian in-force block that provides a source of future earnings, while the longevity business diversifies income and offsets part of its mortality exposure. The combination of traditional life, group business and longevity solutions supports a broad earnings base as the company continues to pursue opportunities in the market.
Reinsurance Group’s net investment income has expanded over time, supported by a larger invested asset base and higher reinvestment rates. In the second quarter of 2026, the core portfolio yield, excluding variable investment income, was 4.96%, while the new money rate reached 6.02%, leaving new investments above the portfolio yield. Management said the year-to-date performance increased confidence in meeting or potentially exceeding that target, while portfolio credit performance remained in line with expectations.
Reinsurance Group’s technology partnerships provide a differentiated growth lever by pairing its insurance expertise with specialist platforms that can improve underwriting efficiency and client service. Insurers continue to modernize claims, underwriting and policy servicing to shorten cycle times and reduce unit costs.
Wealth DistributionThis global reinsurer continues to balance growth investments with shareholder distributions. The company ended the second quarter of 2026 with about $2.2 billion of excess capital and remained well capitalized across internal, regulatory and rating-agency frameworks.
Management continues to target a 20-30% intermediate-term payout ratio and expects to use $400 million of excess capital to repay debt in September 2026, while maintaining flexibility for organic flow and in-force opportunities. This balanced approach supports capital efficiency while preserving capacity for future transactions that meet the company’s risk-return standards.
ConclusionNew business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term.
Coupled with solid growth projections, attractive valuations, and a favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Redesigning and repricing of products and services to maintain sales and profitability have been driving Zacks Life Insurance industry players. Increased automation is expected to drive premium growth and boost the efficiency of Aviva plc (AVVIY - Free Report) , Reinsurance Group of America Incorporated (RGA - Free Report) , Primerica Inc. (PRI - Free Report) , Voya Financial Inc. (VOYA - Free Report) and Lincoln National Corporation (LNC - Free Report) . The Fed has kept the interest rate unchanged till now this year but hinted at one cut this year. In such a scenario, life insurers still face challenges as they invest a large portion of their premiums to meet contractually guaranteed obligations of policyholders. Also, with accelerated digitalization, expenses are likely to increase. Prudently pricing the products and balancing customers' preferences and claim costs are a challenge.
About the Industry The Zacks Life Insurance industry includes companies offering life insurance, annuities, and retirement products such as term and whole life policies, health coverage, Medicare supplements, long-term care, and wealth and asset management services. Per Research and Markets, the global life insurance market is expected to grow to $7.13 trillion in 2026 and reach $11 trillion in 2032, at a CAGR of 7.5%, given the increase in the aging population and increased awareness of the need for financial security. While emerging markets could see faster growth due to low insurance penetration, developed markets could witness slower growth due to market maturity, as per Deloitte. The industry has also been witnessing the accelerated adoption of technology. However, rising mortality or loss cost trends may impact the profitability of insurers.
3 Trends Shaping the Future of the Life Insurance Industry Low Interest Rate: The Federal Reserve cut interest rates three times in 2025 and signaled one potential cut in 2026 amid labor-market softness and subdued economic growth. Life insurers generally benefit from higher rates because they invest premiums to meet policyholder obligations. Consequently, lower rates could reduce investment income, depress new-money yields and compress margins on annuities and other spread-based products. To counter prolonged low rates, insurers increased allocations to private equity, hedge funds and real estate, although these assets are less liquid and more difficult to value. Conversely, lower rates, stronger equity markets and low unemployment could support indexed universal life (IUL) and whole life sales. LIMRA noted that IUL sales began 2026 strongly before moderating in the second quarter. It nevertheless expects IUL sales to increase 8-12% in 2026, supported by product launches and broader distribution.
Product Redesigning: The industry is increasingly combining insurance, wealth management, and healthcare services (including retirement income products, annuities, investment-linked insurance and health and wellness riders) to stay relevant, per a McKinsey and Company report. Life insurers continue to roll out investment products that provide bundled covers of guaranteed retirement income, life and healthcare to cater to customers preferring policies with “living” benefits more than those with death benefits. Increased awareness about having coverage continues to support the life insurance business. LIMRA estimates U.S. annuity sales to remain above $450 billion in 2026 after hitting $464.1 billion in 2025. Despite U.S. individual life new annualized premiums increasing 10% and policy count rising 7% in 2025, LIMRA expects premium growth to moderate to 2–6% in 2026 given softer economic conditions. According to a Deloitte report, global life insurance premiums are expected to slow amid U.S. policy uncertainty, while annuities should retain momentum. Demand may shift from fixed-rate to indexed products. Annuity sales have been a major growth engine, but the boost from high rates is fading. Advanced markets will likely see limited growth, whereas emerging markets are expected to expand faster due to low insurance penetration and rising middle-income populations.
Increased Adoption of Technology: The U.S. life insurance market is adopting digital platforms, online distribution, artificial intelligence and machine learning. Insurers are strengthening digital sales capabilities to offer faster, more convenient access to policies, particularly for tech-savvy consumers. AI, machine learning and real-time data enable customized coverage, streamline premium calculations and improve risk assessment. Automation should support premium growth, enhance efficiency and reduce operating costs, aiding margin expansion. Investments in generative AI, cognitive technologies and blockchain are also improving operational performance and customer experiences. However, as digitization accelerates, insurers must strengthen cybersecurity safeguards to protect sensitive data and minimize exposure to evolving cyber threats.
Zacks Industry Rank Indicates Weak Prospects The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak prospects for the near term.
The Zacks Life Insurance industry, within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #174, which places it in the bottom 29% of the 255 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate.
Before we present a few life insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector & S&P 500 The Life Insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector year to date. The stocks in this industry have collectively gained 17% compared with the Finance sector’s increase of 7.7% and the Zacks S&P 500 composite’s increase of 11.4% in the said time frame.
Year-to-Date Price Performance
Life Insurance Industry's Current Valuation On the basis of trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.25X compared with the S&P 500’s 7.2X and the sector’s 4.43X.
Over the past five years, the industry has traded as high as 2.33X, as low as 1.05X, and at the median of 1.75X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Life Insurance Stocks to Watch Here, we present two Zacks Rank #2 (Buy) and three Zacks Rank #3 (Hold) stocks from the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada and internationally. This insurer’s solid results across all business lines bode well for growth. The proposed acquisition of Direct Line will position Aviva as a strong leader in UK Personal Lines, accelerating its capital-light business while generating cost synergies.
Its earnings growth, coupled with balance sheet strength, enables this Zacks Rank #2 insurer to return wealth to shareholders through dividend hikes and share buybacks while also investing in the business. This drives efficiency and growth, both organically and inorganically.
The Zacks Consensus Estimate for AVVIY’s 2026 and 2027 earnings indicates a year-over-year increase of 12.8% and 15.6%, respectively. The consensus estimate for 2026 and 2027 earnings has moved 1.8% and 3.8% north, respectively in the last 30 days.
Price and Consensus: AVVIY
Primerica: This Duluth, GA-based, second-largest issuer of term-life insurance coverage in North America aims to be a successful senior health business while continuing to enhance its shareholders’ value. Strong demand for protection products drives sales growth and policy persistency benefits for this insurer. A strong business model makes this Zacks Rank #2 insurer well-poised to cater to the middle market's increased demand for financial security.
The Zacks Consensus Estimate for PRI’s 2026 and 2027 earnings indicates a year-over-year increase of 9.2% and 8.1%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2% and 1.3% upward, respectively, in the past 30 days. PRI delivered a four-quarter average earnings surprise of 9.3%.
Price and Consensus: PRI
Price and Consensus: RGA
Voya Financial: Based in New York, this retirement, investment, and employee benefits company in the United States is poised to grow, given its focus on high-growth, high-return, capital-light businesses, solid market presence and cost savings. Expansion of its distribution network and achievement of efficiencies through automation are expected to drive Voya Financial’s performance. The insurer carries a Zacks Rank #3.
The Zacks Consensus Estimate for Voya Financial’s 2026 and 2027 earnings indicates a year-over-year increase of 4.8% and 22.3%, respectively. The expected long-term earnings growth rate is pegged at 11.2%.
Bank of New York Mellon Corp bought a new stake in Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 389,543 shares of the insurance provider’s stock, valued at approximately $82,836,000. Bank of New York Mellon Corp owned 0.59% of Reinsurance Group of America at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also recently bought and sold shares of RGA. Principal Securities Inc. raised its holdings in shares of Reinsurance Group of America by 3.6% in the fourth quarter. Principal Securities Inc. now owns 1,490 shares of the insurance provider’s stock valued at $303,000 after buying an additional 52 shares during the last quarter. Rehmann Capital Advisory Group increased its position in Reinsurance Group of America by 1.3% in the 3rd quarter. Rehmann Capital Advisory Group now owns 4,281 shares of the insurance provider’s stock valued at $819,000 after acquiring an additional 54 shares during the period. CIBC Private Wealth Group LLC raised its stake in Reinsurance Group of America by 6.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 974 shares of the insurance provider’s stock valued at $198,000 after acquiring an additional 56 shares during the last quarter. Covestor Ltd raised its stake in Reinsurance Group of America by 12.2% during the 4th quarter. Covestor Ltd now owns 533 shares of the insurance provider’s stock valued at $108,000 after acquiring an additional 58 shares during the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in Reinsurance Group of America by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 388 shares of the insurance provider’s stock worth $76,000 after acquiring an additional 58 shares during the period. Hedge funds and other institutional investors own 95.11% of the company’s stock.
Reinsurance Group of America Stock Performance Shares of RGA opened at $244.59 on Wednesday. The company has a 50-day simple moving average of $232.33 and a 200-day simple moving average of $217.56. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $15.97 billion, a PE ratio of 10.74 and a beta of 0.47. Reinsurance Group of America, Incorporated has a 52-week low of $178.21 and a 52-week high of $251.00.
Reinsurance Group of America (NYSE:RGA – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The insurance provider reported $8.89 EPS for the quarter, beating the consensus estimate of $6.50 by $2.39. Reinsurance Group of America had a net margin of 5.81% and a return on equity of 14.78%. The firm had revenue of $6.64 billion during the quarter, compared to analysts’ expectations of $6.67 billion. During the same quarter last year, the business earned $4.72 earnings per share. The business’s revenue for the quarter was up 18.5% compared to the same quarter last year. Equities research analysts predict that Reinsurance Group of America, Incorporated will post 28.26 earnings per share for the current fiscal year. Reinsurance Group of America Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be issued a $0.98 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 1.6%. This is an increase from Reinsurance Group of America’s previous quarterly dividend of $0.93. Reinsurance Group of America’s payout ratio is currently 17.22%.
Analysts Set New Price Targets Several research analysts have weighed in on RGA shares. Wells Fargo & Company lifted their target price on Reinsurance Group of America from $269.00 to $291.00 and gave the company an “overweight” rating in a research note on Wednesday, August 19th. TD Cowen upped their price target on Reinsurance Group of America from $212.00 to $235.00 and gave the stock a “hold” rating in a research note on Wednesday, July 22nd. UBS Group raised Reinsurance Group of America from a “hold” rating to a “strong-buy” rating in a report on Friday, July 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of Reinsurance Group of America in a research report on Friday, August 7th. Finally, Piper Sandler dropped their price objective on shares of Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Reinsurance Group of America currently has a consensus rating of “Moderate Buy” and an average target price of $262.56.
Check Out Our Latest Analysis on RGA
Insiders Place Their Bets In other news, EVP Jonathan Porter sold 8,589 shares of Reinsurance Group of America stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $246.30, for a total transaction of $2,115,470.70. Following the completion of the transaction, the executive vice president owned 14,885 shares of the company’s stock, valued at $3,666,175.50. The trade was a 36.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 0.60% of the stock is owned by insiders.
(Free Report)
Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
Further Reading Five stocks we like better than Reinsurance Group of America Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize Want to see what other hedge funds are holding RGA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report).
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For Immediate ReleaseChicago, IL – August 26, 2026 – Today, Zacks Equity Aviva plc (AVVIY - Free Report) , Reinsurance Group of America Inc. (RGA - Free Report) , Primerica Inc. (PRI - Free Report) , Voya Financial Inc. (VOYA - Free Report) and Lincoln National Corp. (LNC - Free Report) .
Redesigning and repricing of products and services to maintain sales and profitability have been driving Zacks Life Insurance industry players. Increased automation is expected to drive premium growth and boost the efficiency of Aviva plc, Reinsurance Group of America Inc., Primerica Inc., Voya Financial Inc. and Lincoln National Corp. The Fed has kept the interest rate unchanged till now this year but hinted at one cut this year. In such a scenario, life insurers still face challenges as they invest a large portion of their premiums to meet contractually guaranteed obligations of policyholders. Also, with accelerated digitalization, expenses are likely to increase. Prudently pricing the products and balancing customers' preferences and claim costs are a challenge.
About the IndustryThe Zacks Life Insurance industry includes companies offering life insurance, annuities, and retirement products such as term and whole life policies, health coverage, Medicare supplements, long-term care, and wealth and asset management services. Per Research and Markets, the global life insurance market is expected to grow to $7.13 trillion in 2026 and reach $11 trillion in 2032, at a CAGR of 7.5%, given the increase in the aging population and increased awareness of the need for financial security.
While emerging markets could see faster growth due to low insurance penetration, developed markets could witness slower growth due to market maturity, as per Deloitte. The industry has also been witnessing the accelerated adoption of technology. However, rising mortality or loss cost trends may impact the profitability of insurers.
3 Trends Shaping the Future of the Life Insurance IndustryLow Interest Rate: The Federal Reserve cut interest rates three times in 2025 and signaled one potential cut in 2026 amid labor-market softness and subdued economic growth. Life insurers generally benefit from higher rates because they invest premiums to meet policyholder obligations. Consequently, lower rates could reduce investment income, depress new-money yields and compress margins on annuities and other spread-based products.
To counter prolonged low rates, insurers increased allocations to private equity, hedge funds and real estate, although these assets are less liquid and more difficult to value. Conversely, lower rates, stronger equity markets and low unemployment could support indexed universal life (IUL) and whole life sales. LIMRA noted that IUL sales began 2026 strongly before moderating in the second quarter. It nevertheless expects IUL sales to increase 8-12% in 2026, supported by product launches and broader distribution.
Product Redesigning: The industry is increasingly combining insurance, wealth management, and healthcare services (including retirement income products, annuities, investment-linked insurance and health and wellness riders) to stay relevant, per a McKinsey and Company report. Life insurers continue to roll out investment products that provide bundled covers of guaranteed retirement income, life and healthcare to cater to customers preferring policies with “living” benefits more than those with death benefits.
Increased awareness about having coverage continues to support the life insurance business. LIMRA estimates U.S. annuity sales to remain above $450 billion in 2026 after hitting $464.1 billion in 2025. Despite U.S. individual life new annualized premiums increasing 10% and policy count rising 7% in 2025, LIMRA expects premium growth to moderate to 2–6% in 2026 given softer economic conditions.
According to a Deloitte report, global life insurance premiums are expected to slow amid U.S. policy uncertainty, while annuities should retain momentum. Demand may shift from fixed-rate to indexed products. Annuity sales have been a major growth engine, but the boost from high rates is fading. Advanced markets will likely see limited growth, whereas emerging markets are expected to expand faster due to low insurance penetration and rising middle-income populations.
Increased Adoption of Technology: The U.S. life insurance market is adopting digital platforms, online distribution, artificial intelligence and machine learning. Insurers are strengthening digital sales capabilities to offer faster, more convenient access to policies, particularly for tech-savvy consumers. AI, machine learning and real-time data enable customized coverage, streamline premium calculations and improve risk assessment.
Automation should support premium growth, enhance efficiency and reduce operating costs, aiding margin expansion. Investments in generative AI, cognitive technologies and blockchain are also improving operational performance and customer experiences. However, as digitization accelerates, insurers must strengthen cybersecurity safeguards to protect sensitive data and minimize exposure to evolving cyber threats.
Zacks Industry Rank Indicates Weak ProspectsThe group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak prospects for the near term.
The Zacks Life Insurance industry, within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #174, which places it in the bottom 29% of the 255 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate.
Before we present a few life insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector & S&P 500The Life Insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector year to date. The stocks in this industry have collectively gained 17% compared with the Finance sector’s increase of 7.7% and the Zacks S&P 500 composite’s increase of 11.4% in the said time frame.
Life Insurance Industry's Current ValuationOn the basis of trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.25X compared with the S&P 500’s 7.2X and the sector’s 4.43X.
Over the past five years, the industry has traded as high as 2.33X, as low as 1.05X, and at the median of 1.75X.
5 Life Insurance Stocks to WatchHere, we present two Zacks Rank #2 (Buy) and three Zacks Rank #3 (Hold) stocks from the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada and internationally. This insurer’s solid results across all business lines bode well for growth. The proposed acquisition of Direct Line will position Aviva as a strong leader in UK Personal Lines, accelerating its capital-light business while generating cost synergies.
Its earnings growth, coupled with balance sheet strength, enables this Zacks Rank #2 insurer to return wealth to shareholders through dividend hikes and share buybacks while also investing in the business. This drives efficiency and growth, both organically and inorganically.
The Zacks Consensus Estimate for AVVIY’s 2026 and 2027 earnings indicates a year-over-year increase of 12.8% and 15.6%, respectively. The consensus estimate for 2026 and 2027 earnings has moved 1.8% and 3.8% north, respectively in the last 30 days.
Primerica: This Duluth, GA-based, second-largest issuer of term-life insurance coverage in North America aims to be a successful senior health business while continuing to enhance its shareholders’ value. Strong demand for protection products drives sales growth and policy persistency benefits for this insurer. A strong business model makes this Zacks Rank #2 insurer well-poised to cater to the middle market's increased demand for financial security.
The Zacks Consensus Estimate for PRI’s 2026 and 2027 earnings indicates a year-over-year increase of 9.2% and 8.1%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2% and 1.3% upward, respectively, in the past 30 days. PRI delivered a four-quarter average earnings surprise of 9.3%.
Reinsurance Group of America: Timberlake, MO-based Reinsurance Group of America is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia. Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earnings. Product-line expansion contributes to risk diversification. It carries a Zacks Rank #3.
The Zacks Consensus Estimate for RGA’s 2026 and 2027 earnings indicates a year-over-year increase of 24.4% and 2.9%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 5.3% and 1.3% north, respectively, in the past 30 days. RGA delivered a four-quarter average earnings surprise of 22.81%.
Voya Financial: Based in New York, this retirement, investment, and employee benefits company in the United States is poised to grow, given its focus on high-growth, high-return, capital-light businesses, solid market presence and cost savings. Expansion of its distribution network and achievement of efficiencies through automation are expected to drive Voya Financial’s performance. The insurer carries a Zacks Rank #3.
The Zacks Consensus Estimate for Voya Financial’s 2026 and 2027 earnings indicates a year-over-year increase of 4.8% and 22.3%, respectively. The expected long-term earnings growth rate is pegged at 11.2%.
Lincoln National is a diversified life insurance and investment management company headquartered in Radnor, PA. The turnaround in the Life Insurance business, a favorable mix shift toward spread-based annuity products, and continued strength in Retirement Plan Services, enhancing earnings quality and long-term profitability, should favor this Zacks Rank #3 insurer. Lincoln National is bringing share buybacks back in the third quarter of 2026, marking an important turn in its multi-year effort to repair capital and reduce balance-sheet risk.
The Zacks Consensus Estimate for Lincoln Financial’s 2027 earnings indicates a year-over-year increase of 8.9%. The consensus estimates for 2026 and 2027 earnings have moved 1.9% and 2.9% upward, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 3.5%.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Reinsurance Group of America (RGA - Free Report) . RGA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.54 right now. For comparison, its industry sports an average P/E of 11.02. RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48, all within the past year.
Another notable valuation metric for RGA is its P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. Over the past 12 months, RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RGA has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.79.
These are only a few of the key metrics included in Reinsurance Group of America's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RGA looks like an impressive value stock at the moment.
Reinsurance Group of America, Incorporated (NYSE:RGA – Get Free Report) has been given an average rating of “Moderate Buy” by the eleven brokerages that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $257.1111.
Several research analysts have recently commented on the stock. Evercore reissued an “outperform” rating and issued a $267.00 price objective on shares of Reinsurance Group of America in a research note on Monday, May 18th. JPMorgan Chase & Co. upped their target price on shares of Reinsurance Group of America from $286.00 to $293.00 and gave the stock an “overweight” rating in a research note on Tuesday. Weiss Ratings reiterated a “buy (b)” rating on shares of Reinsurance Group of America in a report on Wednesday, May 13th. TD Cowen boosted their price target on shares of Reinsurance Group of America from $212.00 to $235.00 and gave the stock a “hold” rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company upped their price objective on Reinsurance Group of America from $261.00 to $269.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th.
Get Our Latest Research Report on Reinsurance Group of America
Reinsurance Group of America Price Performance RGA opened at $244.55 on Wednesday. The stock’s 50-day moving average price is $224.17 and its 200 day moving average price is $214.35. Reinsurance Group of America has a 12-month low of $178.21 and a 12-month high of $248.13. The firm has a market cap of $15.97 billion, a price-to-earnings ratio of 10.74 and a beta of 0.47. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 0.41.
Reinsurance Group of America (NYSE:RGA – Get Free Report) last released its earnings results on Thursday, August 6th. The insurance provider reported $8.89 earnings per share for the quarter, beating the consensus estimate of $6.50 by $2.39. The company had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.67 billion. Reinsurance Group of America had a return on equity of 14.78% and a net margin of 5.81%.Reinsurance Group of America’s revenue was up 18.5% compared to the same quarter last year. During the same period in the previous year, the company posted $4.72 EPS. As a group, sell-side analysts expect that Reinsurance Group of America will post 26.84 earnings per share for the current year.
Reinsurance Group of America Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Tuesday, August 18th. This is a positive change from Reinsurance Group of America’s previous quarterly dividend of $0.93. Reinsurance Group of America’s payout ratio is presently 16.34%.
Insider Activity In other Reinsurance Group of America news, EVP Ronald Herrmann sold 7,000 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $210.58, for a total transaction of $1,474,060.00. Following the sale, the executive vice president owned 3,938 shares in the company, valued at $829,264.04. This represents a 64.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John W. Hayden sold 414 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $214.95, for a total value of $88,989.30. Following the completion of the sale, the executive vice president directly owned 20,949 shares in the company, valued at $4,502,987.55. This represents a 1.94% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is owned by corporate insiders.
Institutional Trading of Reinsurance Group of America Hedge funds have recently added to or reduced their stakes in the company. Foster & Motley Inc. purchased a new position in Reinsurance Group of America in the second quarter worth approximately $1,049,000. Bank of New York Mellon Corp purchased a new stake in shares of Reinsurance Group of America in the 2nd quarter valued at approximately $82,836,000. Wedge Capital Management L L P NC raised its holdings in shares of Reinsurance Group of America by 965.2% in the 2nd quarter. Wedge Capital Management L L P NC now owns 179,440 shares of the insurance provider’s stock valued at $38,158,000 after purchasing an additional 162,594 shares in the last quarter. Handelsbanken Fonder AB raised its holdings in shares of Reinsurance Group of America by 4.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 17,900 shares of the insurance provider’s stock valued at $3,806,000 after purchasing an additional 800 shares in the last quarter. Finally, Elevation Wealth Partners LLC lifted its position in shares of Reinsurance Group of America by 9.5% during the 2nd quarter. Elevation Wealth Partners LLC now owns 702 shares of the insurance provider’s stock worth $149,000 after purchasing an additional 61 shares during the last quarter. Institutional investors and hedge funds own 95.11% of the company’s stock.
About Reinsurance Group of America (Get Free Report)
Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
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Despite Downturns, Analysts Say These 4 Financial Stocks Are BuysReinsurance Group of America NYSE: RGA reported a record operating quarter in the second quarter of 2026, supported by investment income, recent new business, and modestly favorable claims experience across its global operations.
President and CEO Tony Cheng said results were strong across regions and business lines, with contributions from both biometric underwriting and asset management. The company deployed capital in in-force transactions and organic flow business across the U.S., Asia Pacific, and Europe, the Middle East and Africa, while maintaining its return standards.
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3 Stocks Generating a Ridiculous Amount of Cash“We were selective, declining opportunities that did not fit our risk-return profile,” Cheng said. “For the new business closed both year-to-date and for the quarter, the expected returns met or exceeded our targets.”
Record operating income and investment performance New CFO Laura Cockrill said RGA generated pretax adjusted operating income of $761 million, or $8.89 per share after tax. Its trailing-12-month adjusted operating return on equity was 18.4%, excluding accumulated other comprehensive income and notable items.
Investment results were a major contributor. The yield on RGA’s core investment portfolio, excluding variable investment income, was 4.96% during the quarter. Its new-money rate increased to 6.02%, reflecting higher market yields and a greater allocation to investment-grade private assets.
Annualized returns on variable investment income were 15% for the quarter and 11% year to date, above the company’s 7% planned return for 2026. Chief Investment Officer Jayson Bronchetti said the results were driven by realized gains and broad-based outperformance among alternative equity investments.
RGA maintained its 7% variable investment income target for the remainder of the year but said strong results through the first half increased its confidence that it could meet or potentially exceed that level.
Regional results and claims trends In the U.S. and Latin America, traditional business results benefited from favorable individual life claims experience and strong variable investment income. U.S. group claims were in line with the company’s updated expectations, while repricing actions were on track to produce solid results through 2026, Cockrill said.
Financial Solutions results in the U.S. were favorable due to variable investment income, in-force actions, and longevity experience. Cockrill said the Equitable transaction remained on track with its expected financial results, with claims experience on the acquired block in line with expectations since the transaction closed.
In Canada, traditional earnings met expectations and Financial Solutions benefited from strong variable investment income. EMEA traditional results were favorable due to one-time items, while its Financial Solutions results were aided by higher investment income. Asia Pacific delivered another healthy traditional quarter, driven by new business, while Financial Solutions benefited from favorable variable investment income and new-business contributions.
On an economic basis, claims were $31 million better than expectations, producing a $14 million benefit to current-period earnings. Since 2023, economic claims experience has been favorable by $375 million, primarily reflecting U.S. individual life, Asia traditional business, and Financial Solutions.
Jonathan Porter, executive vice president and global chief risk officer, said U.S. individual mortality experience was in line with expectations during the quarter, including large claims. Year-to-date U.S. individual claims experience was favorable by about $70 million, he said.
Premium growth and in-force management Traditional premiums increased 2.2%, or 0.9% on a constant-currency basis, as in-force management actions affected reported growth. Total premiums excluding pension risk transfer business rose 10.5% year to date, or 9.3% in constant currency.
Cockrill said that excluding nonrecurring in-force actions, U.S. traditional and total traditional premiums grew 3% year to date. Total U.S. premiums excluding pension risk transfer growth rose about 8% for both the quarter and year to date.
Cheng highlighted growth in the company’s Strategic Underwriting Programs, saying volumes were on track to double from the prior year. He said the programs can create direct reinsurance opportunities and lead to broader client relationships, including in-force transactions.
RGA also continued managing its exposure to “capped cohorts” in the U.S. The company said such exposure has declined 25% since it adopted long-duration targeted improvements accounting standards about three and a half years ago. Cockrill said the reduction resulted in part from in-force management initiatives, as well as natural runoff and growth in newer business.
Capital deployment, returns and outlook RGA deployed $158 million into in-force transactions during the quarter and nearly $500 million year to date. It returned $111 million to shareholders, including $50 million in share repurchases and $61 million in dividends. The company also announced a 5.4% dividend increase to be paid in the third quarter.
Total buybacks reached $225 million since RGA resumed its repurchase program in the third quarter of the prior year. RGA ended the quarter with approximately $2.2 billion of excess capital and expects to use $400 million of excess capital to pay down debt in September.
Book value per share, excluding AOCI and B36 effects, rose to $174.11. Cockrill said this represented a 10.1% compound growth rate since the start of 2021.
Management reiterated its intermediate-term targets of 8% to 10% earnings-per-share growth, a 13% to 15% return on equity, and a 20% to 30% payout ratio. Cheng said the company’s pipeline remained healthy and diversified, though transaction timing can vary by quarter.
Regarding legacy universal life secondary guarantee and long-term care liabilities, Cheng said RGA would remain “very selective and disciplined.” Those liabilities account for less than 10% of RGA’s balance sheet, and the company expects that proportion to remain at that level going forward.
About Reinsurance Group of America (NYSE:RGA)Reinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
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Reinsurance Group of America, Incorporated (RGA) Q2 2026 Earnings Call August 7, 2026 10:00 AM EDT
Company Participants
Tony Cheng - President, CEO & Director
Laura Cockrill - Executive VP & CFO
Jonathan Porter - Executive VP & Global Chief Risk Officer
Jayson Bronchetti - Executive VP & Chief Investment Officer
Conference Call Participants
Wesley Carmichael - Wells Fargo Securities, LLC, Research Division
Taylor Scott - Barclays Bank PLC, Research Division
Suneet Kamath - Jefferies LLC, Research Division
Thomas Gallagher - Evercore ISI Institutional Equities, Research Division
Joel Hurwitz - Dowling & Partners Securities, LLC
Pablo Singzon - JPMorgan Chase & Co, Research Division
Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division
Presentation
Operator
Welcome to the RGA's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
If you have any objections, you may disconnect at this time. Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For more detail on the risks and uncertainties, please refer to the risk factors discussed in RGA's periodic reports to the SEC. For a reconciliation of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website. There will be references to the earnings presentation slides throughout the call.
I will now turn the floor over to Tony for his opening remarks. Please go ahead.
Tony Cheng
President, CEO & Director
Good morning, everyone, and thank you for joining today's call. We appreciate your continued interest in RGA. I am delighted to share that we have delivered a record result, building on the strong momentum established
Key Takeaways RGA's beat Q2 earnings estimates on strong Financial Solutions growth and investment income.RGA's revenue rose 18.5% as higher premiums and investment income offset expense and currency headwinds. Financial Solutions delivered strong growth across regions, while book value and ROE improved year over year. Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2026 adjusted operating earnings of $8.89 per share, which beat the Zacks Consensus Estimate by 36.6%. The bottom line rose 88.3% from the year-ago quarter.
RGA reported strong second-quarter results, driven by solid growth in Financial Solutions businesses across the United States, EMEA and the Asia/Pacific, along with higher investment income and premium growth. However, higher expenses and lower premiums in the United States and Latin America Traditional segment and foreign currency headwinds partially offset the strong performance.
Behind the HeadlinesRGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 1%. The top line improved 18.5% year over year on higher net investment income, net premiums and other revenues.
Net premiums of $4.5 billion increased 7.7% year over year and missed the Zacks Consensus Estimates by 4.2%.
Investment income improved 10.3% from the prior-year quarter to $1.8 billion and beat the Zacks Consensus Estimates by 13%. The increase was driven by a larger average invested asset base and higher earned yields. The average investment yield increased to 5.33% from 5.31% in the prior-year period, driven by higher variable investment income.
Total benefits and expenses increased 14.7% year over year to $6 billion, driven by higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, and other operating expenses.
Quarterly Segmental UpdateU.S. and Latin America: Total pre-tax adjusted operating income was $319 million, which increased 215.8% year over year.
The Traditional segment reported pre-tax adjusted operating income of $165 million, which rose from $4 million in the prior-year quarter. Net premiums declined 2.9% from the year-ago quarter to $2 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 58.8% to $154 million.
Canada: Total pre-tax adjusted operating income rose 51.4% year over year to $56 million.
The Traditional segment delivered a 35.7% year-over-year increase in pre-tax adjusted operating income to $38 million. Net premiums grew 2.7% to $348 million. Foreign currency exchange rates had an immaterial effect on net premiums for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income doubled year over year to $18 million, benefiting from strong variable investment income.
EMEA: Total pre-tax adjusted operating income grew 28.4% to $172 million.
Pre-tax adjusted operating profit of the Traditional segment was $39 million, higher than the year-ago quarter’s profit of $18 million, driven by improved claims experience and favorable one-time items. Net premiums decreased 0.9% year over year to $568 million. Foreign currency exchange rates had a favorable effect on net premiums of $10 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 14.7% year over year to $133 million, supported by new business and associated investment income.
Asia/Pacific: Total pre-tax adjusted operating income rose nearly 37.6% from the year-ago quarter’s level to $249 million.
The Traditional segment’s pre-tax adjusted operating income rose 24% year over year to $129 million, including a $2 million unfavorable impact from foreign currency exchange rates. Premiums increased 4.2% to $850 million, benefiting from new business growth. Foreign currency exchange rates had an unfavorable effect on net premiums of $4 million for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 55.8% to $120 million. Foreign currency exchange rates had an immaterial impact of $7 million on adjusted operating income before taxes.
Corporate and Other: Pre-tax adjusted operating loss widened slightly to $35 million from a loss of $32 million in the year-ago quarter.
RGA’s Financial UpdateAs of June 30, 2026, total assets were $167 billion, up 6.7% from the 2025-end level.
Book value per share, excluding accumulated other comprehensive income, increased 11.5% to $173.77 from the 2025-end level.
Adjusted operating return on equity was 17.4%, representing a 470-basis-point year-over-year increase.
RGA’s Capital DeploymentReinsurance Group returned $111 million to shareholders in the second quarter, including $50 million of share repurchases and $61 million in dividends.
The company’s board of directors declared a quarterly dividend of 98 cents, to be paid out on Sept 1, 2026, to shareholders of record as of Aug 18, 2026.
RGA’s Zacks RankRGA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other InsurersVoya Financial, Inc. (VOYA - Free Report) reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%.
After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.
Manulife Financial Corporation (MFC - Free Report) reported second-quarter 2026 core earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 16% year over year. Revenues of $7.82 billion surpassed the consensus estimate of $7.42 billion by 5.4%.
Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).
Lincoln National Corporation (LNC - Free Report) reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%. The bottom line declined 5.1% year over year. Adjusted operating revenues grew 4.2% year over year to $4.93 billion, surpassing the Zacks Consensus Estimate by 1.4%.
Management had earlier projected that the Annuities, Life Insurance, Group Protection and Retirement Plan Services units would account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company's total operating income in 2026. Management had earlier projected an RBC ratio of more than 420% in 2026 and over the long term.
Reinsurance Group (RGA - Free Report) came out with quarterly earnings of $8.89 per share, beating the Zacks Consensus Estimate of $6.51 per share. This compares to earnings of $4.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +36.56%. A quarter ago, it was expected that this reinsurance company would post earnings of $6.19 per share when it actually produced earnings of $6.97, delivering a surprise of +12.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Reinsurance Group, which belongs to the Zacks Insurance - Life Insurance industry, posted revenues of $6.71 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $5.64 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Reinsurance Group shares have added about 16.2% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Reinsurance Group?While Reinsurance Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Reinsurance Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.87 on $6.64 billion in revenues for the coming quarter and $26.84 on $26.83 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Life Insurance is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Citizens & Northern (CZNC - Free Report) , is yet to report results for the quarter ended June 2026.
This bank is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +57.5%. The consensus EPS estimate for the quarter has been revised 3% higher over the last 30 days to the current level.
Citizens & Northern's revenues are expected to be $38.6 million, up 30.9% from the year-ago quarter.
Reinsurance Group (RGA - Free Report) reported $6.71 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 19%. EPS of $8.89 for the same period compares to $4.72 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.65 billion, representing a surprise of +0.95%. The company delivered an EPS surprise of +36.56%, with the consensus EPS estimate being $6.51.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Reinsurance Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss ratio - U.S. and Latin America Traditional segment: 91.6% versus the three-analyst average estimate of 92.2%.Policy acquisition costs and other insurance expenses as a percentage of net premiums - U.S. and Latin America Traditional segment: 11.4% versus 11.1% estimated by three analysts on average.Policy acquisition costs and other insurance expenses as a percentage of net premiums - Canada Traditional segment: 11.2% versus the three-analyst average estimate of 13%.Loss ratio - Asia Pacific Traditional: 84.4% versus 84.7% estimated by three analysts on average.Other Revenues- Asia Pacific Financial Solutions: $11 million versus the three-analyst average estimate of $9.15 million.Other Revenues- Asia Pacific: $10 million compared to the $14.81 million average estimate based on three analysts.Other Revenues- Canada: $4 million compared to the $2.92 million average estimate based on three analysts. The reported number represents a change of -33.3% year over year.Other Revenues- Canada Financial Solutions: $4 million versus $3.33 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -20% change.Revenues- Investment related gains (losses), net: $-76 million compared to the $12.07 million average estimate based on four analysts. The reported number represents a change of +72.7% year over year.Revenues- Other revenues: $377 million versus the four-analyst average estimate of $332.23 million. The reported number represents a year-over-year change of +348.8%.Revenues- Net premiums: $4.47 billion compared to the $4.67 billion average estimate based on four analysts. The reported number represents a change of +7.7% year over year.Net investment income: $1.86 billion versus the four-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +32.4%.View all Key Company Metrics for Reinsurance Group here>>>
Shares of Reinsurance Group have returned +3.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life and health reinsurance, reported second quarter net income available to RGA shareholders of $462 million, or $7.01 per diluted share, compared with $180 million, or $2.70 per diluted share, in the prior-year quarter. Adjusted operating income for the second quarter totaled $586 million, or $8.89 per diluted share, compared with $315 million, or $4.72 per diluted share, in the prior-year quarter. Net foreign currency fluctuations had an unfavorable effect of $0.05 per diluted share on net income available to RGA shareholders, and $0.08 per diluted share on adjusted operating income, both as compared with the prior-year quarter.
Tony Cheng, President and Chief Executive Officer, commented, “RGA delivered another record quarter, extending the momentum we have generated so far in 2026 with excellent results across our regions and business lines. Claims experience was modestly favorable to expectations, reinforcing a trend since 2023 that validates our pricing and risk selection discipline. Alongside steady biometric results, we achieved strong investment returns, driven by disciplined execution from our world-class investment team and favorable market backdrop.
“Our first-half results reflect RGA’s durable fundamentals and the strategic advantages of our diversified platform that allow us to deploy capital toward the most attractive opportunities to generate strong risk-adjusted returns while maintaining the discipline to forgo deals that do not meet our standards. With a healthy pipeline, we remain focused on sustainable growth and prudent capital allocation. Our confidence in RGA’s outlook for 2026 and beyond remains high.”
Quarterly Results
Year-to-Date Results
($ in millions, except per share data)
2026
2025
2026
2025
Net premiums
$
4,472
$
4,151
$
9,067
$
8,170
Net income available to RGA shareholders
462
180
792
466
Net income available to RGA shareholders per diluted share
Adjusted operating income, excluding notable items per diluted share
8.89
4.72
15.86
10.38
Book value per share
209.73
182.37
209.73
182.37
Book value per share, excluding accumulated other comprehensive income (AOCI)
173.77
155.87
173.77
155.87
Book value per share, excluding AOCI and B36
174.11
156.63
174.11
156.63
Total assets
167,115
133,479
Information regarding the non-GAAP financial measures and operating measures included in this press release, including definitions of these measures, reconciliations to the most comparable GAAP measures and limitations related thereto, is included below under “Non-GAAP Financial Measures and Other Definitions” and in the tables attached to this press release.
In the second quarter, consolidated net premiums totaled $4.5 billion, an increase of 7.7% compared with the prior-year quarter, with an immaterial impact from net foreign currency.
Investment income for the quarter, excluding spread-based businesses, increased 10.3% compared with the prior-year quarter, primarily due to a larger average invested asset base. Average investment yield was 5.33% in the quarter compared with 5.31% in the prior-year quarter, reflecting higher variable investment income.
The effective tax rate for the quarter was 23.4% on pre-tax income, above the expected range of 22% to 23%. The effective tax rate for the quarter was 23.1% on adjusted operating income before taxes, generally in line with the expected range of 22% to 23%.
SEGMENT RESULTS
U.S. and Latin America
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Net premiums
$
1,961
$
2,019
$
3,893
$
3,940
Adjusted operating income before taxes
165
4
303
144
Adjusted operating income before taxes, excluding notable items
165
4
303
144
Quarterly Results
Adjusted operating income of $165 million increased from $4 million in the prior-year quarter, primarily due to more favorable individual life and group experience. Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Adjusted operating income before taxes
154
97
272
164
Adjusted operating income before taxes, excluding notable items
154
97
272
164
Quarterly Results
Adjusted operating income of $154 million increased from $97 million in the prior-year quarter, primarily due to the earnings contribution from the 2025 transaction with Equitable Holdings, Inc. and strong variable investment income. Canada
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Net premiums
$
348
$
339
$
687
$
658
Adjusted operating income before taxes
38
28
76
60
Adjusted operating income before taxes, excluding notable items
38
28
76
60
Net Premiums
Foreign currency exchange rates had an immaterial effect on net premiums for the quarter. Quarterly Results
Adjusted operating income of $38 million increased from $28 million in the prior-year quarter, primarily due to improved group experience. Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Adjusted operating income before taxes
18
9
28
20
Adjusted operating income before taxes, excluding notable items
18
9
28
20
Quarterly Results
Adjusted operating income of $18 million increased from $9 million in the prior-year quarter, primarily due to strong variable investment income. Europe, Middle East and Africa (EMEA)
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Net premiums
$
568
$
573
$
1,173
$
1,113
Adjusted operating income before taxes
39
18
93
68
Adjusted operating income before taxes, excluding notable items
39
18
93
68
Net Premiums
Foreign currency exchange rates had a favorable effect on net premiums of $10 million for the quarter. Quarterly Results
Adjusted operating income of $39 million increased from $18 million in the prior-year quarter, primarily due to improved claims experience and favorable one-time items. Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Adjusted operating income before taxes
133
116
261
206
Adjusted operating income before taxes, excluding notable items
133
116
261
206
Quarterly Results
Adjusted operating income of $133 million increased from $116 million in the prior-year quarter, primarily due to contributions of new business including the associated higher investment income. Asia Pacific
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Net premiums
$
850
$
816
$
1,710
$
1,593
Adjusted operating income before taxes
129
104
254
210
Adjusted operating income before taxes, excluding notable items
129
104
254
210
Net Premiums
Foreign currency exchange rates had an unfavorable effect on net premiums of $4 million for the quarter. Quarterly Results
Adjusted operating income of $129 million increased from $104 million in the prior-year quarter, primarily due to new business growth. Foreign currency exchange rates had an unfavorable effect of $2 million on adjusted operating income before taxes in the current quarter. Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Adjusted operating income before taxes
120
77
185
136
Adjusted operating income before taxes, excluding notable items
120
77
185
136
Quarterly Results
Adjusted operating income of $120 million increased from $77 million in the prior-year quarter, primarily due to new business growth and strong variable investment income. Foreign currency exchange rates had an unfavorable effect of $7 million on adjusted operating income before taxes in the current quarter. Corporate and Other
Quarterly Results
Year-to-Date Results
($ in millions)
2026
2025
2026
2025
Adjusted operating income (loss) before taxes
(35)
(32)
(100)
(102)
Adjusted operating income (loss) before taxes, excluding notable items
(35)
(32)
(100)
(102)
Quarterly Results
Adjusted operating loss of $35 million increased from $32 million in the prior-year quarter. Dividend Declaration
Effective July 23, 2026, the Board of Directors declared a regular quarterly dividend of $0.98, representing a 5.4% increase, payable September 1, 2026, to shareholders of record as of August 18, 2026.
Earnings Conference Call
A conference call to discuss second quarter results will begin at 10 a.m. Eastern Time on Friday, August 7, 2026. Interested parties may access the call by dialing 1-844-481-2753 (1-412-317-0669 international) and asking to be joined into the Reinsurance Group of America, Incorporated (RGA) call. A live audio webcast of the conference call will be available on RGA’s Investor Relations website at www.rgare.com. A replay of the conference call will be available at the same website for 90 days following the conference call.
RGA has posted to its website an earnings presentation and a Quarterly Financial Supplement that includes financial information for all segments as well as information on its investment portfolio. Additionally, RGA posts periodic reports, press releases and other useful information on its Investor Relations website.
Non-GAAP Financial Measures and Other Definitions
Reinsurance Group of America, Incorporated (the “Company”) discloses certain financial measures that are not determined in accordance with U.S. GAAP. The Company principally uses such non-GAAP financial measures in evaluating performance because the Company believes that such measures, when reviewed in conjunction with relevant U.S. GAAP measures, present a clearer picture of the Company's operating performance and assist the Company in the allocation of its resources. The Company believes that these non-GAAP financial measures provide investors and other third parties with a better understanding of the Company’s results of operations, financial statements and the underlying profitability drivers and trends of the Company’s businesses by excluding specified items which may not be indicative of the Company’s ongoing operating performance and may fluctuate significantly from period to period. These measures should be considered supplementary to the Company’s financial results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Consequently, the Company’s non-GAAP financial measures may not be comparable to similar measures used by other companies.
The following non-GAAP financial measures are used in this document or in other public disclosures made by the Company from time to time:
1.
Adjusted operating income, on a pre-tax and after-tax basis, and adjusted operating income per diluted share. The Company uses these measures as a basis for analyzing financial results because the Company believes that such measures better reflect the ongoing profitability and underlying trends of the Company’s continuing operations. Adjusted operating income is calculated as net income available to the Company’s shareholders (or, in the case of pre-tax adjusted operating income, income before income taxes) excluding, as applicable:
substantially all of the effect of net investment related gains and losses; changes in the fair value of embedded derivatives; changes in the fair value of contracts that provide market risk benefits; the Company’s non-economic losses at contract inception for direct pension risk transfer single premium business (which are amortized into adjusted operating income within adjusted claims and other policy benefits over the estimated lives of the contracts); any net gain or loss from discontinued operations; the cumulative effect of any accounting changes; the impact of certain tax-related items; and any other items that the Company believes are not indicative of the Company’s ongoing operations; as any of the above items can be volatile and may not reflect the underlying performance of the Company’s businesses. In addition, adjusted operating income per diluted share is calculated as adjusted operating income divided by weighted average diluted shares outstanding. These measures also serve as a basis for establishing target levels and awards under the Company’s management incentive programs.
Adjusted operating income (loss) before income taxes, when presented at a segment level, is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments, and is presented in our financial statement footnotes in our periodic reports in accordance with ASC 280 – “Segment Reporting.” Adjusted operating income (loss) before income taxes, when presented on a consolidated basis, is a non-GAAP financial measure.
2.
Adjusted operating income (on a pre-tax and after-tax basis), excluding notable items, and adjusted operating income per diluted share, excluding notable items. Notable items are items that the Company believes may not be indicative of its ongoing operating performance which are excluded from adjusted operating income to provide investors and other third parties with a better understanding of the Company’s results. Such items may be unexpected, unknown when the Company prepares its business plan or otherwise. Notable items presented include the financial impact of the Company’s assumption reviews.
3.
Adjusted operating revenue. This measure excludes the effects of net realized capital gains and losses, and changes in the fair value of certain embedded derivatives.
4.
Shareholders’ equity position excluding the impact of accumulated other comprehensive income (loss) (“AOCI”), shareholders’ average equity position excluding AOCI, and book value per share excluding the impact of AOCI. The Company believes that these measures provide useful information since such measures exclude AOCI-related items that are not permanent and can fluctuate significantly from period to period, and may not reflect the impact of the underlying performance of the Company’s businesses on shareholders’ equity and book value per share. AOCI primarily relates to changes in interest rates, credit spreads on the Company’s investment securities, future policy benefits discount rate measurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses) and foreign currency fluctuations. The Company also discloses the following non-GAAP financial measures:
Shareholders’ average equity position excluding AOCI and B36, where B36 refers to the cumulative change in fair value of funds withheld embedded derivatives; Shareholders’ average equity position excluding AOCI and notable items; Shareholders’ average equity position excluding AOCI, B36 and notable items; and Book value per share, excluding AOCI and B36. 5.
Adjusted operating return on equity, and adjusted operating return on equity, excluding notable items. Adjusted operating return on equity is calculated as adjusted operating income divided by average shareholders’ equity excluding AOCI, and adjusted operating return on equity, excluding notable items, is calculated as adjusted operating income, excluding notable items, divided by average shareholders’ equity excluding AOCI. Adjusted operating return on equity also serves as a basis for establishing target levels and awards under the Company’s management incentive programs. The Company also discloses the following non-GAAP financial measures:
Adjusted operating return on equity excluding AOCI and B36; Adjusted operating return on equity excluding AOCI and notable items, which is calculated as adjusted operating income excluding notable items divided by average shareholders’ equity excluding notable items and AOCI; and Adjusted operating return on equity excluding AOCI, B36 and notable items. Reconciliations of the foregoing non-GAAP financial measures (to the extent disclosed in this document) to the most comparable GAAP financial measures are provided in the Appendix at the end of this document. Except as otherwise noted herein, the non-GAAP figures and reconciliations presented herein reflect the Company’s adoption of the Financial Accounting Standards Board’s Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts” and related amendments (“LDTI”). For additional information regarding the Company’s adoption of LDTI, see Note 1 – “Business and Basis of Presentation” and Note 3 – “Impact of New Accounting Standard” in the notes to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
The Company is unable to provide reconciliations of the intermediate term targets of consolidated adjusted operating income (loss) before taxes, adjusted operating income (loss) before taxes, excluding notable items (on both a segment-level and consolidated basis), consolidated adjusted operating ROE, respectively, which are forward-looking non-GAAP financial measures, due to, among other things, the fact that these targets are a composite of our goals for future results, the inherent difficulty in forecasting generally, and the difficulty of quantifying accurate forecasts of the numerous components comprising these calculations that would be necessary to provide any such reconciliations. In addition, actual performance in future periods may vary from the intermediate term target ranges for a variety of reasons, including known and unknown risk and uncertainties.
Other Definitions:
Uncapped (profitable) cohorts: Cohorts with a net premium ratio under 100%.
Capped (loss) cohorts: Cohorts with a net premium ratio equal to or greater than 100%.
Floored cohorts: Cohorts with reserves floored at zero as reserves cannot be negative.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus – all directed toward creating sustainable long-term value. RGA has approximately $4.3 trillion of life reinsurance in force and total assets of $167.1 billion as of June 30, 2026. To learn more about RGA and its businesses, please visit www.rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.
This document and the documents incorporated by reference herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance, and growth potential of Reinsurance Group of America, Incorporated (the “Company”). Forward-looking statements often contain words and phrases such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “pro forma,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.
Factors that could also cause results or events to differ, possibly materially, from those expressed or implied by forward-looking statements, include, among others: (1) changes in mortality, morbidity, policyholder behavior, claims experience, investment returns, interest rates, expenses and other factors as compared to our pricing assumptions; (2) investment results, whether from changes in economic, capital- and credit-market conditions, asset selection, or otherwise, and their impact on the Company’s investment securities, liquidity, portfolio yields, credit quality, access to capital, cost of capital, and amount of capital required for regulatory and contractual purposes; (3) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company; (4) the availability, amount, cost, and market value of collateral necessary for regulatory reserves, capital, and client obligations; (5) changes in laws and regulations, tax policy and rates, accounting standards, and privacy, data security and cybersecurity regulations applicable to the Company and actions by regulators with authority over the Company’s operations, as well as regulatory restrictions on the ability of Company subsidiaries to pay dividends to the Company; (6) the impact of general economic conditions in the U.S. and globally, including as a result of inflation, interest rate levels, geopolitical instability, and impacts from the imposition of, or changes in tariffs, as well as the stability of and actions by governments, central banks, and economies in jurisdictions where the Company operates, affecting interest rates, markets generally, or the demand for insurance and reinsurance; (7) the stability and financial performance of clients, reinsurers, third-party investment managers and other institutions and the effects of the Company’s dependence on such third parties; (8) the effectiveness of the Company’s risk management strategy, policy, and procedures, whether relating to reinsurance, investment strategy, operations, or otherwise; (9) the impact of impairments of the value of the Company’s investment securities on the Company’s capital requirements and the fact that the determination of allowances and impairments taken on the Company’s investments is highly subjective; (10) the threat of catastrophic events such as pandemics, epidemics, other major health issues, natural disasters, war, military actions (including conflicts in the Middle East), and terrorism or other acts of violence; (11) competitive factors and competitors’ responses to the Company’s initiatives; (12) development and introduction of new products and distribution opportunities and entry into new lines of business and markets; (13) the impact of the development and adoption of artificial intelligence; (14) the effect of acquisitions and other significant transactions, including risks related to the integration of acquired blocks of business and entities and the Company’s ability to achieve the expected benefits of such transactions, including the transaction entered into with subsidiaries of Equitable Holdings, Inc. on July 31, 2025; (15) interruption or failure of the Company’s telecommunication, information technology, or other operational systems, or the Company’s failure to maintain adequate security to protect the confidentiality or privacy of personal or sensitive data and intellectual property stored on such systems; (16) adverse developments with respect to litigation, arbitration, or regulatory investigations or actions; (17) risks associated with our international operations, including related to fluctuation in foreign currency exchange rates; and (18) other risks and uncertainties described in this document and in the Company’s other filings with the Securities and Exchange Commission (“SEC”).
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and the documents incorporated by reference herein and described in the periodic reports the Company files with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update these forward-looking statements, even though the Company’s situation may change in the future, except as required under applicable securities law. For a discussion of the risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see Item 1A – “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as may be supplemented by Item 1A – “Risk Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q and in the Company’s other periodic and current reports filed with the SEC.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income
(Dollars in millions, except per share data)
(Unaudited)
Three Months Ended June 30,
2026
2025
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income available to RGA shareholders
$
462
$
7.01
$
180
$
2.70
Reconciliation to adjusted operating income:
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net
141
2.13
64
0.96
Market risk benefits remeasurement (gains) losses
(20
)
(0.30
)
(14
)
(0.21
)
Realized (gains) losses on funds withheld, included in investment income, net of related expenses
8
0.12
(2
)
(0.03
)
Embedded derivatives:
Included in investment related gains/losses, net
1
0.02
(3
)
(0.04
)
Included in interest credited
—
—
1
0.01
Investment (income) loss on unit-linked variable annuities
—
—
—
—
Interest credited on unit-linked variable annuities
—
—
—
—
Interest expense on uncertain tax positions
—
—
—
—
Other (1)
(8
)
(0.12
)
18
0.27
Uncertain tax positions and other tax related items
—
—
70
1.05
Net income attributable to noncontrolling interest
Wall Street analysts expect Reinsurance Group (RGA - Free Report) to post quarterly earnings of $6.51 per share in its upcoming report, which indicates a year-over-year increase of 37.9%. Revenues are expected to be $6.65 billion, up 17.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Reinsurance Group metrics that are commonly monitored and projected by Wall Street analysts.
Analysts forecast 'Net investment income' to reach $1.65 billion. The estimate indicates a year-over-year change of +17.2%.
Based on the collective assessment of analysts, 'Revenues- Other revenues' should arrive at $332.23 million. The estimate indicates a change of +295.5% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Net premiums' reaching $4.67 billion. The estimate indicates a change of +12.4% from the prior-year quarter.
It is projected by analysts that the 'Net investment income- U.S. and Latin America- Traditional' will reach $289.70 million. The estimate indicates a year-over-year change of +1.7%.
Analysts expect 'Net premiums- U.S. and Latin America- Traditional' to come in at $2.11 billion. The estimate points to a change of +4.3% from the year-ago quarter.
The combined assessment of analysts suggests that 'Net investment income- U.S. and Latin America- Financial Solutions' will likely reach $525.16 million. The estimate points to a change of +41.6% from the year-ago quarter.
Analysts predict that the 'Other Revenues- U.S. and Latin America- Financial Solutions' will reach $238.59 million. The estimate suggests a change of +350.2% year over year.
According to the collective judgment of analysts, 'Net premiums- U.S. and Latin America' should come in at $2.35 billion. The estimate indicates a year-over-year change of +16.9%.
The consensus among analysts is that 'Net investment income- U.S. and Latin America' will reach $814.86 million. The estimate indicates a year-over-year change of +24.2%.
The consensus estimate for 'Other Revenues- U.S. and Latin America' stands at $246.17 million. The estimate suggests a change of +331.9% year over year.
The collective assessment of analysts points to an estimated 'Net premiums- Canada Traditional' of $348.04 million. The estimate indicates a year-over-year change of +2.7%.
The average prediction of analysts places 'Net investment income- Canada Traditional' at $66.62 million. The estimate suggests a change of +0.9% year over year.
View all Key Company Metrics for Reinsurance Group here>>>
Reinsurance Group shares have witnessed a change of +2.6% in the past month, in contrast to the Zacks S&P 500 composite's +3.5% move. With a Zacks Rank #3 (Hold), RGA is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Amundi decreased its stake in Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report) by 25.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 54,957 shares of the insurance provider’s stock after selling 19,201 shares during the period. Amundi owned approximately 0.08% of Reinsurance Group of America worth $11,220,000 as of its most recent SEC filing.
A number of other large investors have also modified their holdings of the stock. AQR Capital Management LLC boosted its stake in shares of Reinsurance Group of America by 148.4% in the fourth quarter. AQR Capital Management LLC now owns 1,652,102 shares of the insurance provider’s stock valued at $336,137,000 after purchasing an additional 987,014 shares during the period. Norges Bank acquired a new position in Reinsurance Group of America in the 4th quarter worth $173,767,000. Orion Porfolio Solutions LLC boosted its position in Reinsurance Group of America by 6,076.4% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 602,503 shares of the insurance provider’s stock valued at $119,512,000 after buying an additional 592,748 shares during the last quarter. SEB Asset Management AB purchased a new position in Reinsurance Group of America in the 1st quarter valued at about $81,533,000. Finally, Adage Capital Partners GP L.L.C. acquired a new stake in shares of Reinsurance Group of America during the second quarter valued at about $69,426,000. Institutional investors and hedge funds own 95.11% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms have issued reports on RGA. JPMorgan Chase & Co. lifted their price objective on Reinsurance Group of America from $270.00 to $286.00 and gave the stock an “overweight” rating in a report on Tuesday, July 21st. Piper Sandler decreased their price target on shares of Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating for the company in a research report on Monday, May 11th. Evercore restated an “outperform” rating and issued a $267.00 price target on shares of Reinsurance Group of America in a research note on Monday, May 18th. Barclays upped their price target on shares of Reinsurance Group of America from $268.00 to $278.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Finally, Wall Street Zen raised shares of Reinsurance Group of America from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $255.00.
View Our Latest Report on Reinsurance Group of America
Reinsurance Group of America Trading Down 0.1% Shares of NYSE RGA opened at $236.14 on Wednesday. The company has a market cap of $15.47 billion, a price-to-earnings ratio of 12.79 and a beta of 0.47. Reinsurance Group of America, Incorporated has a 12-month low of $176.96 and a 12-month high of $245.00. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 0.46. The stock’s 50 day simple moving average is $220.26 and its 200 day simple moving average is $212.72.
Reinsurance Group of America (NYSE:RGA – Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The insurance provider reported $6.97 EPS for the quarter, topping analysts’ consensus estimates of $6.03 by $0.94. Reinsurance Group of America had a return on equity of 13.16% and a net margin of 4.92%.The firm had revenue of $6.49 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the prior year, the business earned $5.66 EPS. The firm’s revenue was up 23.5% on a year-over-year basis. Equities research analysts expect that Reinsurance Group of America, Incorporated will post 26.84 EPS for the current year.
Insiders Place Their Bets In other Reinsurance Group of America news, EVP John W. Hayden sold 414 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $214.95, for a total transaction of $88,989.30. Following the completion of the transaction, the executive vice president owned 20,949 shares in the company, valued at approximately $4,502,987.55. The trade was a 1.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Ronald Herrmann sold 7,000 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $210.58, for a total value of $1,474,060.00. Following the completion of the transaction, the executive vice president directly owned 3,938 shares of the company’s stock, valued at approximately $829,264.04. The trade was a 64.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.60% of the company’s stock.
About Reinsurance Group of America (Free Report)
Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
Further Reading Five stocks we like better than Reinsurance Group of America System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding RGA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report).
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The market expects Reinsurance Group (RGA - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis reinsurance company is expected to post quarterly earnings of $6.51 per share in its upcoming report, which represents a year-over-year change of +37.9%.
Revenues are expected to be $6.65 billion, up 17.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.12% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Reinsurance Group?For Reinsurance Group, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.58%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Reinsurance Group will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Reinsurance Group would post earnings of $6.19 per share when it actually produced earnings of $6.97, delivering a surprise of +12.60%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Reinsurance Group doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsPrimerica (PRI - Free Report) , another stock in the Zacks Insurance - Life Insurance industry, is expected to report earnings per share of $5.96 for the quarter ended June 2026. This estimate points to a year-over-year change of +9.2%. Revenues for the quarter are expected to be $872.5 million, up 9.6% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Primerica has been revised 1% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.56%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Primerica will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Entropy Technologies LP cut its holdings in Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report) by 46.2% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 13,990 shares of the insurance provider’s stock after selling 12,010 shares during the period. Entropy Technologies LP’s holdings in Reinsurance Group of America were worth $2,856,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also made changes to their positions in the business. Renaissance Technologies LLC purchased a new position in Reinsurance Group of America during the 1st quarter valued at about $5,635,000. GC Wealth Management RIA LLC lifted its holdings in shares of Reinsurance Group of America by 7.9% in the first quarter. GC Wealth Management RIA LLC now owns 3,048 shares of the insurance provider’s stock valued at $622,000 after purchasing an additional 223 shares in the last quarter. Public Employees Retirement System of Ohio lifted its holdings in shares of Reinsurance Group of America by 2.4% in the first quarter. Public Employees Retirement System of Ohio now owns 29,287 shares of the insurance provider’s stock valued at $5,979,000 after purchasing an additional 683 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Reinsurance Group of America by 44.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 335,734 shares of the insurance provider’s stock valued at $68,543,000 after purchasing an additional 102,698 shares during the last quarter. Finally, Inceptionr LLC grew its position in shares of Reinsurance Group of America by 203.1% in the first quarter. Inceptionr LLC now owns 5,874 shares of the insurance provider’s stock valued at $1,199,000 after purchasing an additional 3,936 shares during the last quarter. 95.11% of the stock is currently owned by hedge funds and other institutional investors.
Reinsurance Group of America Stock Performance NYSE:RGA opened at $238.93 on Monday. The company has a market cap of $15.65 billion, a P/E ratio of 12.94 and a beta of 0.47. The firm’s 50 day moving average is $216.78 and its two-hundred day moving average is $210.87. Reinsurance Group of America, Incorporated has a fifty-two week low of $165.52 and a fifty-two week high of $245.00. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.46.
Reinsurance Group of America (NYSE:RGA – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The insurance provider reported $6.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.03 by $0.94. The company had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.47 billion. Reinsurance Group of America had a net margin of 4.92% and a return on equity of 13.16%. The business’s quarterly revenue was up 23.5% compared to the same quarter last year. During the same period in the previous year, the company earned $5.66 EPS. Analysts expect that Reinsurance Group of America, Incorporated will post 26.84 EPS for the current year.
Reinsurance Group of America Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 19th were paid a $0.93 dividend. This represents a $3.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 19th. Reinsurance Group of America’s payout ratio is currently 20.15%.
Insider Transactions at Reinsurance Group of America In other Reinsurance Group of America news, EVP John W. Hayden sold 414 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $214.95, for a total transaction of $88,989.30. Following the completion of the sale, the executive vice president directly owned 20,949 shares in the company, valued at $4,502,987.55. The trade was a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Ronald Herrmann sold 7,000 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $210.58, for a total transaction of $1,474,060.00. Following the completion of the sale, the executive vice president directly owned 3,938 shares of the company’s stock, valued at $829,264.04. The trade was a 64.00% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In Several research analysts recently issued reports on RGA shares. Wall Street Zen upgraded Reinsurance Group of America from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Wells Fargo & Company increased their target price on Reinsurance Group of America from $261.00 to $269.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. TD Cowen increased their price objective on Reinsurance Group of America from $212.00 to $235.00 and gave the company a “hold” rating in a research note on Wednesday. Piper Sandler decreased their price target on shares of Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. Finally, UBS Group upgraded shares of Reinsurance Group of America from a “hold” rating to a “strong-buy” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Reinsurance Group of America has an average rating of “Moderate Buy” and an average target price of $255.00.
Check Out Our Latest Analysis on Reinsurance Group of America
About Reinsurance Group of America (Free Report)
Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
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California Public Employees Retirement System decreased its position in Reinsurance Group of America, Incorporated (NYSE:RGA – Free Report) by 9.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 159,725 shares of the insurance provider’s stock after selling 16,562 shares during the quarter. California Public Employees Retirement System owned 0.24% of Reinsurance Group of America worth $32,609,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors have also bought and sold shares of RGA. Activest Wealth Management purchased a new position in shares of Reinsurance Group of America during the fourth quarter worth approximately $30,000. Tobam boosted its stake in shares of Reinsurance Group of America by 244.7% in the 4th quarter. Tobam now owns 162 shares of the insurance provider’s stock valued at $33,000 after purchasing an additional 115 shares in the last quarter. International Assets Investment Management LLC bought a new position in shares of Reinsurance Group of America during the 4th quarter valued at $35,000. Entrust Financial LLC bought a new position in shares of Reinsurance Group of America during the 4th quarter valued at $40,000. Finally, Advisory Services Network LLC purchased a new position in Reinsurance Group of America in the 3rd quarter worth $38,000. Hedge funds and other institutional investors own 95.11% of the company’s stock.
Insider Buying and Selling In related news, EVP John W. Hayden sold 414 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $214.95, for a total transaction of $88,989.30. Following the completion of the transaction, the executive vice president owned 20,949 shares of the company’s stock, valued at $4,502,987.55. This trade represents a 1.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Ronald Herrmann sold 7,000 shares of Reinsurance Group of America stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $210.58, for a total value of $1,474,060.00. Following the transaction, the executive vice president owned 3,938 shares of the company’s stock, valued at $829,264.04. The trade was a 64.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.60% of the company’s stock.
Reinsurance Group of America Stock Down 0.8% Shares of NYSE:RGA opened at $238.97 on Wednesday. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.14 and a quick ratio of 0.14. The company has a market cap of $15.65 billion, a PE ratio of 12.95 and a beta of 0.47. The stock’s 50-day moving average is $215.17 and its 200 day moving average is $210.18. Reinsurance Group of America, Incorporated has a 1 year low of $165.52 and a 1 year high of $245.00.
Reinsurance Group of America (NYSE:RGA – Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The insurance provider reported $6.97 EPS for the quarter, topping the consensus estimate of $6.03 by $0.94. Reinsurance Group of America had a net margin of 4.92% and a return on equity of 13.16%. The business had revenue of $6.49 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the business posted $5.66 earnings per share. Reinsurance Group of America’s quarterly revenue was up 23.5% compared to the same quarter last year. Sell-side analysts anticipate that Reinsurance Group of America, Incorporated will post 26.86 EPS for the current year.
Reinsurance Group of America Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 19th were issued a dividend of $0.93 per share. This represents a $3.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, May 19th. Reinsurance Group of America’s dividend payout ratio (DPR) is presently 20.15%.
Analyst Upgrades and Downgrades RGA has been the subject of several recent research reports. UBS Group boosted their price target on shares of Reinsurance Group of America from $220.00 to $236.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 8th. Wells Fargo & Company raised their price objective on Reinsurance Group of America from $261.00 to $269.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Evercore reiterated an “outperform” rating and issued a $267.00 price objective on shares of Reinsurance Group of America in a report on Monday, May 18th. Piper Sandler lowered their target price on Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Finally, Wall Street Zen upgraded Reinsurance Group of America from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Seven investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Reinsurance Group of America currently has an average rating of “Moderate Buy” and an average price target of $257.50.
Get Our Latest Stock Analysis on Reinsurance Group of America
Reinsurance Group of America Profile (Free Report)
Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
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ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE:RGA) plans to release second quarter earnings on Thursday, August 6, at approximately 4:15 p.m. Eastern Time. The release will be issued via newswire and will also be available through RGA's website, www.rgare.com.RGA will host a conference call to discuss the second quarter results beginning at 10 a.m. Eastern Time on Friday, August 7. Interested parties may access the call by dialing 1-844-481-2753 (412-317-0669 inter.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Reinsurance Group (RGA - Free Report) . This company, which is in the Zacks Insurance - Life Insurance industry, shows potential for another earnings beat.
This reinsurance company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 22.43%.
For the most recent quarter, Reinsurance Group was expected to post earnings of $6.19 per share, but it reported $6.97 per share instead, representing a surprise of 12.60%. For the previous quarter, the consensus estimate was $5.86 per share, while it actually produced $7.75 per share, a surprise of 32.25%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Reinsurance Group lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Reinsurance Group currently has an Earnings ESP of +0.42%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Chubb?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Chubb (CB - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $7.02 a share, just 14 days from its upcoming earnings release on July 21, 2026.
Chubb's Earnings ESP sits at +6.72%, which, as explained above, is calculated by taking the percentage difference between the $7.02 Most Accurate Estimate and the Zacks Consensus Estimate of $6.58. CB is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CB is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Reinsurance Group (RGA - Free Report) as well.
Reinsurance Group, which is readying to report earnings on July 30, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $6.55 a share, and RGA is 23 days out from its next earnings report.
The Zacks Consensus Estimate for Reinsurance Group is $6.52, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.42%.
CB and RGA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Maurice Tulloch has been appointed to the company's Board of Directors, effective July 1, 2026.“Maurice brings a forward-looking view of the insurance industry, paired with broad, hands-on experience leading global businesses,” said Tony Cheng, President and Chief Executive Officer, RGA. “His combination of operational expertise and global insight,.
Key Takeaways RGA benefits from favorable mortality trends and growing demand for pension risk transfer solutions.Canada operations and longevity insurance provide diversified earnings and support long-term growth.Reinsurance Group maintains capital flexibility through buybacks, dividends and investments to fund growth. Shares of Reinsurance Group of America, Incorporated (RGA - Free Report) have gained 8.4% in the past month compared with the industry’s growth of 7.9%
RGA's recent rally has been driven by first-quarter 2026 strong earnings, favorable mortality experience, growing pension risk transfer business, higher investment income and its still-attractive valuation, which have strengthened investor sentiment.
Image Source: Zacks Investment Research
Shares of Manulife Financial Corp. (MFC - Free Report) , Voya Financial, Inc. (VOYA - Free Report) and Sun Life Financial Inc. (SLF - Free Report) have gained 5.5%, 12.2% and 8.5%, respectively, in the past month.
RGA’s Average Target Price Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $254.38 per share. The average suggests a potential 18.2% upside from the last closing price.
Image Source: Zacks Investment Research
RGA’s Attractive ValuationShares of RGA are trading at a discount to the industry. Its forward price-to-book value of 1.05X is lower than the industry average of 2.18X, the Finance sector’s 4.53X, and the Zacks S&P 500 Composite’s 7.92X. The life insurer has a Value Score of A.
Image Source: Zacks Investment Research
Shares of Manulife Financial and Voya Financial are also trading at a discount, whereas Sun Life Financial is trading at a premium to the industry average.
RGA’s Growth Projection EncouragesThe Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 18.3%. The consensus estimate for revenues is pegged at $26.89 billion, implying a year-over-year improvement of 12.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 6.6% and 6.5%, respectively, from the corresponding 2026 estimates.
Earnings have grown 26.7% over the past five years, outpacing the industry average of 5.9%.
The Zacks Consensus Estimate for 2026 and 2027 has moved 2.3% and 0.8% north, respectively, over the last 60 days.
Key Points to Note for RGAReinsurance Group is a leader in the traditional United States and Latin American markets. It has successfully expanded its product line with market-leading services, capabilities, expertise and innovation. Individual mortality has matured, providing a base for stable earnings and capital generation. RGA continues to benefit from favorable mortality trends, particularly in its U.S. individual life business, which has improved underwriting profitability. The significant value embedded in the in-force business is anticipated to generate predictable long-term earnings.
In Canada, Reinsurance Group is a market leader with solid growth and profitability. It has a sizable block of in-force business, which is a significant source of future earnings. Reinsurance Group expects longevity insurance, which is projected to witness steady demand, to experience long-term growth in the Canadian market. While longevity insurance provides a diversified income source, it also acts as a hedge against the company’s large mortality position.
RGA continues to capitalize on robust demand for financial solutions. The company continues to benefit from increasing demand for pension risk transfer transactions, which has become an important long-term growth driver. Its combination of biometric underwriting expertise and asset management capabilities differentiates it from its peers and allows it to capture complex, higher-return transactions.
The company’s net investment income has been improving over the years. It witnessed a CAGR of 17.7% over the five years (2020-2025). Investment income remains supportive as new money yields continue to exceed the existing portfolio yield, improving book yields over time. Management expects variable investment income to be 7% during 2026 despite a subdued real estate environment.
RGA has also been managing capital effectively via share buybacks, dividend payments and prudent investments. As of March 31, 2026, excess capital stood at $2.4 billion, while deployable capital over the next 12 months reached $2.9 billion, providing ample flexibility to fund growth opportunities. RGA expects to return 20-30% of after-tax operating earnings to shareholders over the long term while reducing financial leverage during 2026.
Risks for RGAHigher total benefits and expenses remain concerns for RGA. In the first quarter of 2026, it increased 23.8% year over year to $6.1 billion due to higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, which is weighing on margin expansion.
Reinsurance Group, being a multinational company, is exposed to foreign currency risk since exchange rates may be subject to adverse changes over time.
New regulations, including evolving capital and reinsurance requirements in the United States and the U.K., could increase compliance costs or reduce transaction economics.
ConclusionFavorable mortality experience, strong momentum in financial solutions, a diversified business, disciplined capital deployment and improving investment income should continue to favor RGA over the long term. However, higher expenses, currency exposure and regulatory changes remain risks.
Coupled with solid growth projections, attractive valuations and solid capital position, it is, therefore, wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Reinsurance Group (RGA - Free Report) Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
RGA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. RGA has a Momentum Style Score of A, and shares are up 0.5% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.61 to $26.88 per share. RGA boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RGA should be on investors' short list.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Laura Cockrill has been named Chief Financial Officer, effective immediately. She succeeds Axel André, who will leave the company on July 17 to pursue a new opportunity. Most recently, Ms. Cockrill served as Chief Strategy Officer and as a member of RGA’s Executive Committee.
“During her more than 25 years with RGA, Laura has excelled in positions of increasing responsibility across the finance organization and the company more broadly,” said Tony Cheng, President and Chief Executive Officer, RGA. “She has played a pivotal role in shaping and advancing our enterprise strategy and long-term growth priorities. Laura is a proven leader who brings an unmatched understanding of our business, and I look forward to continuing to work closely with her to achieve our financial objectives and create long-term value for our shareholders. I would also like to thank Axel for his numerous contributions during his tenure and wish him all the best as he embarks on this exciting new chapter.”
Prior to her current role, Ms. Cockrill served as the organization’s Deputy Chief Financial Officer, and before that, as Chief Financial Officer for the Americas region. During her career with the company, she has held a wide range of finance roles, giving her deep expertise across business, capital, collateral, investments, treasury, and financial planning and analysis. She will remain a member of RGA’s Executive Committee.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus, all directed toward creating sustainable long-term value. RGA has approximately $4.3 trillion of life reinsurance in force and total assets of $164.1 billion as of March 31, 2026. To learn more about RGA and its businesses, please visit rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.
More News From Reinsurance Group of America, Incorporated
Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Laura Cockrill has been named Chief Financial Officer, effective immediately. She succeeds Axel André, who will leave the company on July 17 to pursue a new opportunity. Most recently, Ms. Cockrill served as Chief Strategy Officer and as a member of RGA’s Executive Committee.
“During her more than 25 years with RGA, Laura has excelled in positions of increasing responsibility across the finance organization and the company more broadly,” said Tony Cheng, President and Chief Executive Officer, RGA. “She has played a pivotal role in shaping and advancing our enterprise strategy and long-term growth priorities. Laura is a proven leader who brings an unmatched understanding of our business, and I look forward to continuing to work closely with her to achieve our financial objectives and create long-term value for our shareholders. I would also like to thank Axel for his numerous contributions during his tenure and wish him all the best as he embarks on this exciting new chapter.”
Prior to her current role, Ms. Cockrill served as the organization’s Deputy Chief Financial Officer, and before that, as Chief Financial Officer for the Americas region. During her career with the company, she has held a wide range of finance roles, giving her deep expertise across business, capital, collateral, investments, treasury, and financial planning and analysis. She will remain a member of RGA’s Executive Committee.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus, all directed toward creating sustainable long-term value. RGA has approximately $4.3 trillion of life reinsurance in force and total assets of $164.1 billion as of March 31, 2026. To learn more about RGA and its businesses, please visit rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260622488200/en/
Reinsurance Group of America, Incorporated is a global leader in life and health reinsurance with $4.3 trillion in force and $157 billion in assets. Focus is on RGA's baby bond NT CAL 52, offering a 7.125% coupon, callable or resettable in October 2027, and currently trading just above par. We like this one, and it offers a lower-risk play today.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE:RGA) plans to release first quarter earnings on Thursday, May 7, at approximately 4:15 p.m. Eastern Time. The release will be issued via newswire and will also be available through RGA's website, www.rgare.com. RGA will host a conference call to discuss the first quarter results beginning at 10 a.m. Eastern Time on Friday, May 8. Interested parties may access the call by dialing 1-844-481-2753 (412-317-0669 internation.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Reinsurance Group of America (RGA - Free Report) . RGA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 8.55. Over the last 12 months, RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48.
Another valuation metric that we should highlight is RGA's P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.96. RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RGA has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Reinsurance Group of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RGA feels like a great value stock at the moment.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Reinsurance Group (RGA - Free Report) Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
RGA is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. RGA has a Momentum Style Score of B, and shares are up 1.8% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.57 to $26.34 per share. RGA boasts an average earnings surprise of +8.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RGA should be on investors' short list.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Reinsurance Group of America (RGA - Free Report) . RGA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.54, which compares to its industry's average of 9.17. Over the past 52 weeks, RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48.
We should also highlight that RGA has a P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.08. RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RGA has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Reinsurance Group of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RGA feels like a great value stock at the moment.
Wall Street expects a year-over-year increase in earnings on higher revenues when Reinsurance Group (RGA - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis reinsurance company is expected to post quarterly earnings of $6.19 per share in its upcoming report, which represents a year-over-year change of +9.4%.
Revenues are expected to be $6.42 billion, up 20.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Reinsurance Group?For Reinsurance Group, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.07%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Reinsurance Group will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Reinsurance Group would post earnings of $5.86 per share when it actually produced earnings of $7.75, delivering a surprise of +32.25%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Reinsurance Group doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA) (the “Company”) announced today that a notice of redemption will be issued to the holders of all of its outstanding $400 million aggregate principal amount 5.75% Fixed-to-Floating Rate Subordinated Debentures due 2056 (CUSIP No. 759351 802 and ISIN US7593518027) (the “2056 Debentures”) in accordance with the terms of the indenture governing the 2056 Debentures. The 2056 Debentures are listed on the New York Stock.
Wall Street analysts expect Reinsurance Group (RGA - Free Report) to post quarterly earnings of $6.19 per share in its upcoming report, which indicates a year-over-year increase of 9.4%. Revenues are expected to be $6.42 billion, up 20.3% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Reinsurance Group metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Net investment income' will reach $1.58 billion. The estimate indicates a change of +28.5% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Other revenues' at $326.38 million. The estimate suggests a change of +270.9% year over year.
The combined assessment of analysts suggests that 'Revenues- Net premiums' will likely reach $4.48 billion. The estimate indicates a change of +11.6% from the prior-year quarter.
Analysts' assessment points toward 'Pre-tax adjusted operating income (loss)- U.S. and Latin America Traditional' reaching $117.78 million. The estimate is in contrast to the year-ago figure of $140.00 million.
The collective assessment of analysts points to an estimated 'Pre-tax adjusted operating income (loss)- Total U.S. and Latin America' of $227.20 million. Compared to the current estimate, the company reported $207.00 million in the same quarter of the previous year.
Analysts expect 'Pre-tax adjusted operating income (loss)- Canada Traditional' to come in at $35.15 million. The estimate compares to the year-ago value of $32.00 million.
It is projected by analysts that the 'Pre-tax adjusted operating income (loss)- Canada Financial Solutions' will reach $9.16 million. The estimate is in contrast to the year-ago figure of $11.00 million.
Based on the collective assessment of analysts, 'Pre-tax adjusted operating income (loss)- Total Canada' should arrive at $44.32 million. The estimate is in contrast to the year-ago figure of $43.00 million.
Analysts predict that the 'Pre-tax adjusted operating income (loss)- EMEA Traditional' will reach $28.17 million. Compared to the present estimate, the company reported $50.00 million in the same quarter last year.
The consensus estimate for 'Pre-tax adjusted operating income (loss)- U.S. and Latin America Financial Solutions' stands at $109.42 million. The estimate is in contrast to the year-ago figure of $67.00 million.
Analysts forecast 'Pre-tax adjusted operating income (loss)- Total EMEA' to reach $134.31 million. Compared to the current estimate, the company reported $140.00 million in the same quarter of the previous year.
According to the collective judgment of analysts, 'Pre-tax adjusted operating income (loss)- Asia Pacific Traditional' should come in at $94.85 million. Compared to the current estimate, the company reported $106.00 million in the same quarter of the previous year.
View all Key Company Metrics for Reinsurance Group here>>>
Over the past month, shares of Reinsurance Group have returned +2.5% versus the Zacks S&P 500 composite's +10.3% change. Currently, RGA carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life and health reinsurance, reported first quarter net income available to RGA shareholders of $330 million, or $4.98 per diluted share, compared with $286 million, or $4.27 per diluted share, in the prior-year quarter. Adjusted operating income for the first quarter totaled $462 million, or $6.97 per diluted share, compared with $379 million, or $5.66 per diluted share, the year be.
Reinsurance Group (RGA - Free Report) came out with quarterly earnings of $6.97 per share, beating the Zacks Consensus Estimate of $6.19 per share. This compares to earnings of $5.66 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.53%. A quarter ago, it was expected that this reinsurance company would post earnings of $5.86 per share when it actually produced earnings of $7.75, delivering a surprise of +32.25%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Reinsurance Group, which belongs to the Zacks Insurance - Life Insurance industry, posted revenues of $6.66 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.78%. This compares to year-ago revenues of $5.34 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Reinsurance Group shares have added about 5.5% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Reinsurance Group?While Reinsurance Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Reinsurance Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.61 on $6.63 billion in revenues for the coming quarter and $26.27 on $26.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Life Insurance is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, Citizens & Northern (CZNC - Free Report) , has yet to report results for the quarter ended March 2026.
This bank is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +41.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Citizens & Northern's revenues are expected to be $36.8 million, up 35.3% from the year-ago quarter.
For the quarter ended March 2026, Reinsurance Group (RGA - Free Report) reported revenue of $6.66 billion, up 24.8% over the same period last year. EPS came in at $6.97, compared to $5.66 in the year-ago quarter.
The reported revenue represents a surprise of +3.78% over the Zacks Consensus Estimate of $6.42 billion. With the consensus EPS estimate being $6.19, the EPS surprise was +12.53%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Reinsurance Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net premiums- U.S. and Latin America- Financial Solutions: $320 million versus the three-analyst average estimate of $257.26 million.Net investment income- U.S. and Latin America- Traditional: $288 million versus $296.43 million estimated by three analysts on average.Net premiums- U.S. and Latin America- Traditional: $1.93 billion versus the three-analyst average estimate of $2 billion.Other Revenues- Corporate and Other: $29 million versus the three-analyst average estimate of $19.08 million.Net investment income- Corporate and Other: $149 million versus $157.1 million estimated by three analysts on average.Other Revenues- EMEA Financial Solutions: $15 million versus the three-analyst average estimate of $10.98 million.Net investment income- EMEA Financial Solutions: $137 million compared to the $120.5 million average estimate based on three analysts.Net investment income- EMEA Traditional: $35 million versus the three-analyst average estimate of $35.54 million.Net investment income: $1.7 billion compared to the $1.58 billion average estimate based on four analysts. The reported number represents a change of +38.1% year over year.Revenues- Other revenues: $368 million versus $326.38 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +318.2% change.Revenues- Net premiums: $4.6 billion compared to the $4.48 billion average estimate based on four analysts. The reported number represents a change of +14.3% year over year.Investment related gains, net- Corporate and Other: $1 million versus the three-analyst average estimate of $2.69 million.View all Key Company Metrics for Reinsurance Group here>>>
Shares of Reinsurance Group have returned +1.6% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways RGA Q1 adjusted EPS jumped 21.9% y/y and beat estimates on strong revenue growth.Financial Solutions growth across the United States, EMEA and Asia/Pacific boosted RGA's results.RGA repurchased $50M in shares and raised its quarterly dividend to 93 cents. Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter.
RGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.
RGA reported strong first-quarter results, driven by solid growth in Financial Solutions businesses across the United States, EMEA and the Asia/Pacific, along with higher investment income and premium growth. However, higher expenses and weakness in the United States and Latin America Traditional segment partially offset the strong performance.
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%.
Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The increase was driven by a larger average invested asset base and higher earned yields. The average investment yield increased to 4.93% from 4.64% in the prior-year period, driven by higher variable investment income.
Total benefits and expenses increased 23.8% year over year to $6.1 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses, and Interest credited.
Quarterly Segmental UpdateU.S. and Latin America: Total pre-tax adjusted operating income was $256 million, which increased 23.7% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $138 million, which decreased 1.4% year over year. Net premiums increased 0.6% from the year-ago quarter to $1.9 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 76% to $118 million.
Canada: Total pre-tax adjusted operating income rose 11.6% year over year to $48 million.
The Traditional segment delivered a 18.7% year-over-year increase in pre-tax adjusted operating income to $48 million. Net premiums grew 6.3% to $339 million, benefiting from a $2 million favorable impact from foreign currency exchange rates during the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income decreased 9.1% year over year to $10 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating income grew 30% to $182 million.
Pre-tax adjusted operating profit of the Traditional segment was $54 million, higher than the year-ago quarter’s profit of $50 million. Foreign currency exchange rates had a favorable effect of $5 million on adjusted operating income before taxes. Premiums increased 12% to $605 million. Foreign currency exchange rates had a favorable effect on net premiums of $43 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 42.2% year over year to $128 million. Foreign currency exchange rates had a favorable effect of $8 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income rose nearly 15.5% from the year-ago quarter’s level to $190 million.
The Traditional segment’s pre-tax adjusted operating income rose 17.9% year over year to $125 million, including a $1 million favorable impact from foreign currency exchange rates. Premiums increased 10.7% to $860 million. Foreign currency exchange rates had a favorable effect on net premiums of $18 million for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 10.2% to $65 million. Foreign currency exchange rates had an immaterial impact of $1 million on adjusted operating income before taxes.
Corporate and Other: Pre-tax adjusted operating loss totaled $65 million, reflecting an improvement from a loss of $70 million in the year-ago quarter. Results were unfavorable relative to the expected quarterly average run rate, primarily due to compensation expenses and unfavorable variable investment income.
RGA’s Financial UpdateAs of March 31, 2026, total assets were $164 billion, up 4.8% from the 2025-end level.
Book value per share, excluding accumulated other comprehensive income, increased 1.8% to $167.60 from the 2025-end level.
Adjusted operating return on equity was 15.2%, representing a 50-basis-point year-over-year increase.
RGA’s Capital DeploymentReinsurance Group repurchased shares of $50 million in the first quarter.
The company’s board of directors declared a quarterly dividend of 93 cents. Effective May 5, 2026, the dividend will be paid out on June 2, 2026, to shareholders of record as of May 19, 2026.
RGA’s Zacks RankRGA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other InsurersVoya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year.
Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million. Meanwhile, fee income of $604 million rose 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter.
Arthur J. Gallagher & Co. (AJG - Free Report) reported first-quarter 2026 adjusted net earnings of $4.47 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 21.8% on a year-over-year basis.
Total revenues of $4.7 billion beat the Zacks Consensus Estimate by 1.4%. The top line also improved 28.1% year over year, driven by higher commissions, fees, supplemental revenues, and contingent revenues.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%.
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale & Specialty. Our estimate was $4.8 billion.Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Miami, OK, May 08, 2026 (GLOBE NEWSWIRE) -- The American Global Insurance and Reinsurance Group (the “American Global Group”) is pleased to announce that it has entered into a strategic partnership with two leading Lloyd’s syndicates. American Global Group’s principal subsidiary, American Global Insurance, Inc. (“AGII”), a commercial insurance and reinsurance company organized and licensed under the laws the Modoc Nation, a tribal entity recognized by the Federal Government which has its sovereign tribal jurisdiction in the State of Oklahoma, has secured quota share reinsurance support for its health care indemnity insurance from two prominent, corporately owned, syndicates at Lloyd’s of London.
The American Global Group is comprised of insurance and reinsurance companies and various service companies that support its businesses, many of which are established under the laws of Tribal Jurisdictions. AGII is the preeminent insurer and reinsurer of the American Global Group. It was established and incorporated under the laws of the Modoc Nation, and licensed, pursuant to the Insurance Code of the Modoc Nation, by its Department of Insurance.
AGII principally underwrites supplemental wellness and fully funded health care indemnity insurance programs for small to medium sized employers that conform to the guidelines set forth in the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Internal Revenue Code, such that they are exempt from state and local regulation. AGII has also designed and developed health care plans that will soon be offered in certain States as alternatives to the Affordable Care Act (“ACA”) products; these plans are ACA compliant. Many of AGII’s insurance programs integrate Health Savings Accounts to bring additional savings, versatility, and long-term wealth accumulation to further add to the value proposition.
As noted above, AGII entered into a Hospital Indemnity Quota Share Reinsurance Agreement with two pre-eminent Lloyd’s of London Syndicates effective as of January 1, 2026. Under the Quota Share Agreement, the Lloyd’s of London Syndicates are assuming a fifty percent (50%) share of the premiums and losses directly related to the medical health indemnity risks underwritten by AGII.
The Commissioner of Insurance for the Modoc Nation believes AGII is the first tribal insurance company to secure a working relationship with any Lloyd’s of London Syndicate. He commented that “with the support and strength of the oldest and most established insurance and reinsurance organization in the world, the American Global Group is now setting its sights on redefining how American employers can provide affordable quality healthcare to their employees.”
This Quota Share Agreement serves to validate the underwriting capabilities of the AGII team, while at the same time, gives additional assurances and confidence to AGII’s policyholders and insureds that they have solid financial backing and support from not only AGII, but also from two of the most highly rated Lloyd’s of London Syndicates.
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Stock to Watch: Reinsurance Group (RGA - Free Report) Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
RGA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. RGA has a Momentum Style Score of A, and shares are up 2.7% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $26.40 per share. RGA also boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RGA should be on investors' short list.
Despite Downturns, Analysts Say These 4 Financial Stocks Are BuysReinsurance Group of America NYSE: RGA reported a strong first quarter of 2026, with management pointing to broad-based earnings strength across regions, favorable claims experience and continued capital deployment into new business opportunities.
On the company’s earnings call, President and Chief Executive Officer Tony Cheng said the quarter reflected “disciplined execution, strong underlying fundamentals, and the benefits of the diversified global platform” RGA has built. Cheng said performance was strong across many regions and products, with Asia Pacific, EMEA and the U.S. all contributing to results.
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3 Stocks Generating a Ridiculous Amount of CashChief Financial Officer Axel André said RGA generated pre-tax adjusted operating income of $611 million for the quarter, or $6.97 per share after tax. Adjusted operating return on equity, excluding notable items, was 16.2% for the trailing 12 months. André said management views first-quarter run-rate earnings per share at approximately $6.70 after considering claims experience, variable investment income and other items.
Broad-Based Regional Strength Cheng said Asia Pacific delivered another strong quarter, supported by ongoing growth and execution. He highlighted several notable transactions in Japan, including both in-force and flow deals involving asset and biometric risk.
In EMEA, Cheng said earnings exceeded expectations, helped by favorable overall experience and continued momentum in longevity. He said RGA completed additional longevity transactions in the region by leveraging long-standing client relationships.
In the U.S., management said adjusted operating performance was strong, aided by favorable claims experience and contributions from recent new business. Cheng said U.S. individual life activity remained robust, driven in large part by the company’s strategic underwriting initiative. He also said U.S. group results were in line with 2026 expectations.
André said traditional premium growth was 5% year over year, helped by growth in EMEA and Asia Pacific. U.S. traditional premium growth was approximately 1%, reflecting the effect of strategic recaptures of certain treaties in the second half of 2025. André said those recaptures involved lower-quality and less profitable blocks and reduced volatility.
Claims Experience Remains Favorable Management emphasized favorable biometric claims experience during the quarter. André said economic claims experience was favorable by $117 million, with a corresponding favorable current-period financial impact of $4 million. More than half of the economic experience came from U.S. individual life, and every region posted favorable experience.
André said much of that favorable experience was deferred to future periods because of uncapped cohorts, while the portion recognized in current-period income was partly offset by unfavorable experience in EMEA traditional capped cohorts. Since the beginning of 2023, he said total company economic claims experience has been favorable by $343 million.
During the Q&A session, Chief Risk Officer Jonathan Porter said first-quarter U.S. claims experience benefited from lower frequency of both large and non-large claims. He said RGA did not see other significant trends in its own data during the quarter. Porter also noted that the flu season was more moderate than last year based on CDC data.
Asked about longer-term mortality trends and GLP-1 drugs, Porter said RGA has not made material assumption changes related to GLP-1s. However, he said the expected benefit gives the company more confidence that its existing mortality improvement assumptions will be realized over time.
Capital Deployment and Share Repurchases RGA deployed $338 million into in-force transactions during the quarter. André said the company remains selective and is focused on the quality and expected returns of new business. Cheng said most in-force deployment during the quarter was in Asia, where RGA saw attractive risk-reward opportunities.
The company also repurchased $50 million of shares in the quarter, bringing total repurchases to $175 million since buybacks were reinstated in the third quarter of last year. André said RGA ended the quarter with estimated excess capital of $2.4 billion and estimated next-12-month deployable capital of $2.9 billion.
André said RGA expects shareholder capital returns to range between 20% and 30% of after-tax operating earnings over the long term. He also said the company expects to allocate $400 million of excess capital to reduce financial leverage during 2026.
Responding to an analyst question about whether RGA has enough opportunities to meet its capital deployment needs, André said the company is tracking in line with expectations and will prioritize quality over quantity. He said RGA expects to meet its financial targets through a combination of capital deployment and shareholder returns.
Investment Portfolio and Private Credit André said RGA’s non-spread book yield, excluding variable investment income, was 4.85% in the quarter. The new money rate was 5.64%, above the portfolio yield, which he said continues to provide a tailwind to the overall book yield. Variable investment income was modestly below the company’s 7% annual return expectation by about $8 million.
André also addressed RGA’s private credit strategy, saying private credit represents approximately 9% of the total portfolio and is diversified across categories such as investment-grade private placements, private asset-backed securities, fund finance, infrastructure debt and middle-market loans. He said most private assets are investment grade, and the majority of below-investment-grade private assets are first-lien senior secured loans underwritten by RGA’s internal team.
“Overall, fundamentals across the portfolio remain healthy,” André said, adding that credit performance has been in line with expectations.
Pipeline, Competition and Regulatory Topics Cheng said RGA’s pipeline remains strong, high quality and globally diversified. He cited continued opportunities in Asia tied to product development and capital framework changes in markets such as Japan and Korea. He also pointed to strong U.K. longevity momentum and continued U.S. opportunities linked to RGA’s biometric and underwriting strengths.
Asked about competition, Cheng said RGA’s “sweet spot” remains transactions that combine biometric and asset risks. He said competition has increased in some markets, particularly for more “vanilla” asset-intensive transactions, but argued that RGA is uniquely positioned in more complex deals involving both asset and biometric expertise.
Management also addressed several client and regulatory topics. Porter said RGA does not expect the planned merger of Equitable and Corebridge to affect its in-force or flow reinsurance transactions with Equitable. On potential U.K. regulatory changes related to funded reinsurance counterparty charges, Porter said RGA does not expect a large impact because roughly 90% of its in-force U.K. longevity block is done on a swap basis rather than funded reinsurance.
André said RGA does not expect the NAIC’s Actuarial Guideline 55 to have a material impact on the company, noting that its U.S. business typically uses its onshore flagship entity, RGA Re, as the reinsurer facing clients.
Cheng closed the call by saying RGA was pleased with its strong start to the year and remains confident in its outlook for 2026 and beyond.
About Reinsurance Group of America NYSE: RGAReinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.
RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.
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MIAMI, OH, May 20, 2026 (GLOBE NEWSWIRE) -- American Global Insurance, part of the American Global Insurance and Reinsurance Group (“American Global Group”), announced that it has entered into a quota share reinsurance partnership with two corporately owned Lloyd’s syndicates to support its healthcare indemnity insurance portfolio.
The agreement became effective on January 1, 2026, and provides quota share reinsurance support for risks underwritten by American Global Insurance, Inc. (“AGII”), the group’s principal insurance subsidiary. Under the terms of the agreement, the participating Lloyd’s syndicates will assume 50 percent of the premiums and losses associated with AGII’s medical health indemnity insurance business.
AGII is a commercial insurance and reinsurance company organized and licensed under the laws of the Modoc Nation, a federally recognized tribal entity with sovereign jurisdiction in Oklahoma. The company operates pursuant to the Insurance Code of the Modoc Nation and is licensed by the Modoc Nation Department of Insurance.
The American Global Group includes insurance, reinsurance, and service companies that support a range of risk management and healthcare-focused insurance operations. AGII serves as the primary underwriting entity within the organization and focuses on supplemental wellness and fully funded healthcare indemnity insurance programs designed for small and mid-sized employers.
According to the company, many of AGII’s insurance offerings are structured to align with the Employee Retirement Income Security Act of 1974 (ERISA) and applicable Internal Revenue Code guidelines. These programs are designed to support employer-sponsored healthcare solutions while operating within federally established regulatory frameworks.
AGII has also developed healthcare plans intended for future availability in select U.S. markets as alternatives to Affordable Care Act (ACA) marketplace products. The company stated that these plans are designed to comply with ACA requirements. In addition, several AGII programs integrate Health Savings Accounts (HSAs), allowing employers and employees to incorporate tax-advantaged healthcare savings features into their benefits planning strategies.
Company representatives stated that the quota share reinsurance agreement represents an important operational milestone for the organization’s healthcare indemnity business. By partnering with established Lloyd’s syndicates, AGII aims to strengthen its risk management framework and expand long-term underwriting capacity.
“The support provided through this agreement reflects confidence in AGII’s underwriting platform and healthcare indemnity programs,” said a spokesperson for the American Global Group. “The partnership also enhances the company’s ability to manage risk exposure while continuing to serve employer groups seeking alternative healthcare coverage solutions.”
The Commissioner of Insurance for the Modoc Nation commented on the significance of the arrangement, noting that AGII is believed to be the first tribal insurance company to establish a working relationship with Lloyd’s syndicates for this type of reinsurance support.
“With the backing of one of the most established insurance and reinsurance markets in the world, the American Global Group is positioned to continue developing healthcare insurance solutions for employers,” the commissioner stated.
Industry observers continue to monitor developments involving tribal insurance entities and alternative healthcare financing models as employers seek additional flexibility in managing healthcare-related costs and employee benefit structures.
The company stated that the agreement with the Lloyd’s syndicates provides additional financial support for AGII policyholders and insured programs through shared participation in covered healthcare indemnity risks. The arrangement also reflects ongoing collaboration between tribal-regulated insurance organizations and international reinsurance markets.
American Global Group said it plans to continue expanding its healthcare indemnity and wellness-related insurance operations through strategic partnerships, underwriting initiatives, and product development efforts focused on employer-sponsored healthcare programs.
More information about the company and its insurance programs is available at American Global Insurance®.
About American Global Insurance and Reinsurance Group
The American Global Insurance and Reinsurance Group is comprised of insurance, reinsurance, and service companies supporting healthcare-focused insurance operations and related risk management services. Its principal subsidiary, American Global Insurance, Inc. (AGII), is organized under the laws of the Modoc Nation and provides healthcare indemnity insurance and reinsurance solutions for employer-sponsored benefit programs.
Media Contact
Company Name: AGI
Contact Person: Ron Poe
Phone: +19549809654
Country: USA
Website: https://agicoverage.com/
Key Takeaways RGA benefits from market leadership in the U.S., Latin America and Canada, supporting stable earnings growth. Product expansion, longevity insurance and favorable biometrics experience aid diversification. Strong capital levels support growth investments, dividends and share repurchases over time. Reinsurance Group of America, Incorporated (RGA - Free Report) shares are trading at a discount to the Zacks Life Insurance industry. Its forward price-to-book value of 1.05X is lower than the industry average of 2.06X, the Finance sector’s 4.37X, and the Zacks S&P 500 Composite’s 8.12X. The life insurer has a Value Score of A.
The insurer has a market capitalization of $14.02 billion. The average volume of shares traded in the last three months was 0.3 million.
Shares of Manulife Financial Corp. (MFC - Free Report) and Voya Financial, Inc. (VOYA - Free Report) are trading at a discount, while Sun Life Financial Inc. (SLF - Free Report) is trading at a multiple higher than the industry average.
Image Source: Zacks Investment Research
RGA’s Price PerformanceShares of this life insurer have gained 4.8% in the past year compared with the industry’s growth of 11.3%.
Image Source: Zacks Investment Research
RGA Trading Above 50-Day and 200-Day Moving AveragesShares of Reinsurance Group closed at $214.04 on Tuesday and are trading above the 50-day and 200-day simple moving averages (SMA) of $207.90 and $199.98, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
RGA’s Growth Projection EncouragesThe Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 17.9%. The consensus estimate for revenues is pegged at $26.89 billion, implying a year-over-year improvement of 12.2%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 6.4% and 6.5%, respectively, from the corresponding 2026 estimates.
Earnings have grown by 26.7% over the past five years, outpacing the industry average of 6.4%.
Average Target Price for RGA Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $254.38 per share. The average suggests a potential 18.8% upside from the last closing price.
Image Source: Zacks Investment Research
Reinsurance Group’s Return on Invested CapitalIts return on invested capital (ROIC) has increased every year, reflecting RGA’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 5.87%, higher than the industry average of 0.6%.
Key Points to Note for RGAReinsurance Group is a leader in the traditional U.S. and Latin American markets. It has successfully expanded its product line with market-leading services, capabilities, expertise and innovation. Individual mortality has matured, providing a base for stable earnings and capital generation. Significant value embedded in the in-force business is anticipated to generate predictable long-term earnings. Product-line expansion contributes to risk diversification.
In Canada, Reinsurance Group is a market leader with solid growth and profitability. It has a sizable block of in-force business, which is a significant source of future earnings. Reinsurance Group expects longevity insurance, projected to witness steady demand, to experience long-term growth in the Canadian market. While longevity insurance provides a diversified income source, it also acts as a hedge against a large mortality position.
Demand for protection products among the emerging global middle class and increasing demand for retirement, senior protection and savings products among aging populations create opportunities for growth in new business.
RGA is well-capitalized and has access to multiple forms of capital. RGA expects to remain active in deploying capital in attractive growth opportunities while balancing returning excess capital to shareholders over time.
Reinsurance Group continues to ramp up technological inclusion with its product. This insurer is a global biometric liability reinsurance leader. Biometrics experience, which includes mortality, morbidity and longevity, over the last five quarters was favorable.
Wealth DistributionThis global reinsurer has also been managing capital effectively via share buybacks, dividend payments and prudent investments. RGA expects to remain active in deploying capital into attractive growth opportunities in organic flow and in-force block transactions and returning excess capital to shareholders through dividends and share repurchases.
ConclusionNew business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term.
The stock also has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Coupled with solid growth projections, as well as attractive valuations and favorable ROIC of the stock, it is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Redesigning and repricing of products and services to maintain sales and profitability have been driving Zacks Life Insurance industry players. Increased automation is expected to drive premium growth and boost the efficiency of AIA (AAGIY - Free Report) , Aviva (AVVIY - Free Report) , Reinsurance Group of America (RGA - Free Report) , Primerica Inc. (PRI - Free Report) and Voya Financial (VOYA - Free Report) .
In the December 2025 FOMC meeting, the Federal Reserve slashed the interest rate by 25 basis points to 3.5%-3.75%, with one more cut expected this year. In such a scenario, life insurers will likely face challenges as they invest a large portion of their premiums to meet contractually guaranteed obligations of policyholders. Also, with accelerated digitalization, expenses are likely to increase. Prudently pricing the products and balancing customers' preferences and claim costs are a challenge.
About the Industry The Zacks Life Insurance industry includes companies offering life insurance, annuities, and retirement products such as term and whole life policies, health coverage, Medicare supplements, long-term care, and wealth and asset management services. Per Research and Markets, the global life insurance market is expected to grow to $7.13 trillion in 2026 and reach $11 trillion in 2032, at a CAGR of 7.5%, given the increase in the aging population and increased awareness of the need for financial security. While emerging markets could see faster growth due to low insurance penetration, developed markets could witness slower growth due to market maturity, as per Deloitte. The industry has also been witnessing the accelerated adoption of technology. However, rising mortality or loss cost trends may impact the profitability of insurers.
3 Trends Shaping the Future of the Life Insurance Industry Prevailing Low Interest Rate: The Federal Reserve slashed the interest rate three times in 2025, with one more cut in 2026, given a soft job market and muted economic growth. Life insurers are direct beneficiaries of improved rates as they invest premiums to meet the contractually guaranteed obligations of policyholders. Thus, muted rates will likely weigh on investment return. Nonetheless, in times of persistently low interest rates, life insurers direct their funds into alternative investments like private equity, hedge funds and real estate. With an improving equity market, lower interest rates could relieve pressure on indexed universal life (IUL) and whole life sales, given low unemployment as per the LIMRA report. LIMRA expects indexed universal life (IUL) sales to grow at a double-digit pace in 2026, driven by new product launches and broader distribution. In contrast, variable universal life (VUL) sales are projected to slow down due to anticipated equity market volatility, while term life sales are likely to remain relatively stable with limited growth.
Product Redesigning: The industry is increasingly combining insurance, wealth management, and healthcare services (including retirement income products, annuities, investment-linked insurance and health and wellness riders) to stay relevant, per a McKinsey and Company report. Life insurers continue to roll out investment products that provide bundled covers of guaranteed retirement income, life and healthcare to cater to customers preferring policies with “living” benefits more than those with death benefits. Increased awareness about having coverage continues to support the life insurance business. A compelling product portfolio with prudent pricing will thus aid sales of life insurers. Per a report published in ReporterLinker, global life insurance gross written premium is expected to be $2.5 trillion by 2026. Per Statista’s report, gross written premium is expected to show an annual growth rate (CAGR 2025-2029) of 3.54%. According to a Deloitte report, global life insurance premiums may decline amid U.S. policy uncertainty, while annuities should continue growing. Advanced markets will likely see limited growth, whereas emerging markets are expected to expand faster due to low insurance penetration and rising middle-income populations.
Increased Adoption of Technology: Per Statista, the United States is experiencing a shift toward digital platforms and online sales in life insurance. Carriers have started selling policies online that appeal to the tech-savvy population. These insurers are offering customized coverages leveraging artificial intelligence and machine learning. At the same time, the use of real-time data makes premium calculation easier and reduces risk. Increased automation is expected to drive premium growth and boost efficiency. Moreover, accelerated digitization, as evident from the increased adoption of generative AI, cognitive intelligence and blockchain, should help life insurers curb operational costs and aid margin expansion. Insurers are investing heavily in technological advancements to ensure efficiency and smooth functioning. At the same time, players must shield themselves from falling prey to cyber threats.
Zacks Industry Rank Indicates Bleak Prospects The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong prospects for the near term.
The Zacks Life Insurance industry, within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #179, which places it in the bottom 27% of the 255 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate. The consensus estimate has dropped 20.5% for the current year.
Before we present a few life insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector & S&P 500 The Life Insurance industry has underperformed the Zacks S&P 500 composite but outperformed the Finance sector year to date. The stocks in this industry have collectively gained 3.6% compared with the Finance sector’s increase of 0.9% and the Zacks S&P 500 composite’s increase of 11.2% in the said time frame.
Year-to-Date Price Performance
Life Insurance Industry's Current Valuation On the basis of trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.02X compared with the S&P 500’s 8.23X and the sector’s 4.39X.
Over the past five years, the industry has traded as high as 2.14X, as low as 1.08X, and at the median of 1.67X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Life Insurance Stocks to Watch Here, we present one Zacks Rank #2 (Buy) stock and four Zacks Rank #3 (Hold) stocks from the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aviva: Headquartered in London, United Kingdom, Aviva provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada and internationally. This insurer’s solid results across all the business lines bode well for growth. The proposed acquisition of Direct Line will position Aviva as a strong leader in UK Personal Lines, accelerating its capital-light business while generating cost synergies.
Earnings growth, coupled with balance sheet strength, enables this Zacks Rank #2 insurer to return wealth to shareholders through dividend hikes and share buybacks while also investing in the business. This drives efficiency and growth, both organically and inorganically.
The Zacks Consensus Estimate for AVVIY’s 2026 and 2027 earnings indicates a year-over-year increase of 10.1% and 15.3%, respectively.
Price and Consensus: AVVIY
AIA: Based in Central, Hong Kong, AIA Group Limited, together with its subsidiaries, provides life insurance-based financial services in Hong Kong. This leading pan Asian life insurer benefits from its solid agent force, exclusive bancassurance tie-up, strong free surplus generation and a shareholder-friendly capital return program. It carries a Zacks Rank #3.
The Zacks Consensus Estimate for AAGIY’s 2026 and 2027 earnings indicates a year-over-year increase of 30.5% and 15.6%, respectively.
Price and Consensus: AAGIY
Reinsurance Group of America: Timberlake, MO-based Reinsurance Group of America is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia. Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earnings. Product-line expansion contributes to risk diversification for this Zacks Rank #3 insurer.
The Zacks Consensus Estimate for RGA’s 2026 and 2027 earnings indicates a year-over-year increase of 18.3% and 6.7%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2.3% and 0.8% north, respectively, in the past 30 days. RGA delivered a four-quarter average earnings surprise of 9.82%.
Price and Consensus: RGA
Primerica: This Duluth, GA-based, second-largest issuer of term-life insurance coverage in North America aims to be a successful senior health business while continuing to enhance its shareholders’ value. Strong demand for protection products drives sales growth and policy persistency benefits for this insurer. A strong business model makes this Zacks Rank #3 insurer well-poised to cater to the middle market's increased demand for financial security.
The Zacks Consensus Estimate for PRI’s 2026 and 2027 earnings indicates a year-over-year increase of 6.7% and 8.7%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2.6% and 1.8% upward, respectively, in the past 30 days. PRI delivered a four-quarter average earnings surprise of 9.3%.
Price and Consensus: PRI
Voya Financial: Based in New York, this retirement, investment, and employee benefits company in the United States is poised to grow, given its focus on high-growth, high-return, capital-light businesses, solid market presence and cost savings. Expansion of its distribution network and achievement of efficiencies through automation are expected to drive Voya Financial’s performance. The insurer carries a Zacks Rank #3. The Zacks Consensus Estimate for Voya Financial’s 2026 and 2027 earnings indicates a year-over-year increase of 8% and 15.2%, respectively. The expected long-term earnings growth rate is pegged at 11.5%. It delivered a four-quarter average earnings surprise of 7.25%.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Crystal Lu has been named Senior Vice President, Investor Relations, effective June 8, 2026. In this role, Ms. Lu will lead investor relations strategy and liaise with the global investment community, supporting communication around the company's financial performance and long-term value creation as RGA continues to advance its enterprise prioritie.
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, today announced it has been recognized as Reinsurer of the Year by the InsuranceERM Americas Awards 2026, an annual program recognizing companies excelling in insurance risk and capital management. The award recognizes a reinsurer that has delivered measurable reinsurance and risk transfer benefits over the past 18 months, while also demonstrating a strong culture of r.
