Core Insights - Reinsurance Group of America (RGA) shares have declined by 11.1% year-to-date, contrasting with a 2.5% decline in the industry, while the Finance sector and the S&P 500 have gained 10.6% and 9.5%, respectively [1][7] - RGA has a market capitalization of $12.6 billion, with an average trading volume of 0.4 million shares over the last three months [1] Valuation and Market Position - RGA shares are trading at a price-to-book value of 1.03X, which is lower than the industry average of 1.66X, indicating that RGA shares are relatively affordable [4] - The average target price for RGA, based on estimates from 11 analysts, is $239 per share, suggesting a potential upside of 28.3% from the last closing price [5] Financial Performance - In Q2, RGA's net investment income surged by 30.1% to $1.4 billion, with yields increasing by 66 basis points to 5.3% [7][14] - The Zacks Consensus Estimate for RGA's 2025 revenues is $23.4 billion, reflecting a year-over-year improvement of 2.5% [9] - Current-year earnings are estimated at $22.73 per share, up 0.7% from the previous year, while 2026 earnings per share and revenues are projected to increase by 9.8% and 12.5%, respectively, from 2025 estimates [9] Analyst Sentiment and Estimates - Analysts have recently lowered their earnings estimates for RGA for 2025 and 2026 by 1.5% and 0.5%, respectively, over the past 30 days [10] - The adjusted operating return on equity (ROE) for Q2 2025 has decreased by 100 basis points to 14.3%, with trailing 12-month ROE falling by 320 basis points year-over-year to 12.6% [16] Market Leadership and Growth Potential - RGA leads the reinsurance markets in the U.S., Latin America, and Canada, with a strong focus on individual mortality segments that provide stable earnings and capital generation [11][12] - The company benefits from a sizable in-force business that supports steady earnings and has seen long-term growth in net investment income, with a 17.2% compound annual growth rate (CAGR) from 2016 to 2024 [14] Challenges and Financial Health - Rising expenses from higher claims, interest credited, operating costs, and interest expenses could pressure margins [15] - Long-term debt has increased by 13.7% since the end of 2024, reaching $5.73 billion, which has pushed the total debt-to-capital ratio up by 50 basis points to 32.1 [16]

Core Insights - Reinsurance Group of America (RGA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 1.14X, lower than the industry average of 1.97X, the Finance sector's 4.18X, and the S&P 500 Composite's 8.18X [2] - RGA has a market capitalization of $13.13 billion and an average trading volume of 0.4 million shares over the last three months [2] - The company has a Value Score of A, indicating strong valuation metrics [2] Price Performance - RGA shares have lost 3.2% over the past year, while the industry has grown by 14.8%, the Finance sector by 19.7%, and the S&P 500 composite by 11.3% [5] - RGA shares are currently trading above the 50-day simple moving average of $197.98, indicating solid upward momentum [4] Earnings and Growth - RGA has a decent earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 7.85% [6] - Earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8%, and the company has a Growth Score of B [11] - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 2.2%, with revenues projected at $23.45 billion, reflecting a 2.6% improvement [10] Analyst Sentiment and Target Price - The average target price for RGA, based on short-term price targets from 11 analysts, is $244.64 per share, suggesting a potential upside of 25.1% from the last closing price [12] Return on Invested Capital - RGA's return on invested capital (ROIC) has increased annually, with a trailing 12-month ROIC of 6%, significantly higher than the industry average of 0.6% [15] Market Position and Strategy - RGA is a leader in the traditional U.S. and Latin American markets, with a strong product line and significant value embedded in its in-force business, which is expected to generate predictable long-term earnings [17] - The company is well-capitalized and actively seeks growth opportunities while balancing capital returns to shareholders [19] - RGA is ramping up technological inclusion in its products and has maintained a free cash flow conversion rate above 85% in recent quarters [20] Final Assessment - RGA's new business volumes, favorable longevity experience, diversified business model, and effective capital deployment position it well for long-term growth [22] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [22] - Given the solid growth projections and attractive valuations, RGA is considered a stock to hold [23]

Core Viewpoint - Reinsurance Group of America (RGA) shares are trading at a discount compared to the industry average, indicating potential investment opportunities due to its strong fundamentals and growth prospects [1][2]. Financial Metrics - RGA has a market capitalization of $13.09 billion and a forward price-to-book value of 1.2X, lower than the industry average of 1.83X, the Finance sector's 4.05X, and the S&P 500 Composite's 7.89X [1][2]. - The average trading volume over the last three months was 0.5 million shares [2]. Price Performance - RGA's shares have gained 2.4% over the past year, underperforming the industry growth of 13.8%, the Finance sector's return of 15.4%, and the S&P 500 composite's appreciation of 8.1% [3]. Earnings Surprise History - RGA has a solid earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 14.67% [4]. Growth Projections - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 1.8%, with revenues projected at $24.22 billion, reflecting a 7.3% improvement [5]. - For 2026, earnings per share and revenues are expected to increase by 8.6% and 8.7%, respectively, from the 2024 estimates [5]. Historical Earnings Growth - RGA's earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8% [6]. Return on Invested Capital - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.3% in the trailing 12 months, significantly higher than the industry average of 0.6% [7]. Market Position and Strategy - RGA is a leader in the U.S. and Latin American markets, with a strong product line and capabilities that contribute to stable earnings and capital generation [10]. - In Canada, RGA holds a significant block of in-force business, which is expected to drive future earnings, particularly in longevity insurance [11]. - The company is well-capitalized and plans to deploy capital in attractive growth opportunities while returning excess capital to shareholders [12][14]. Technological Integration - RGA is enhancing its product offerings through technological advancements and is recognized as a global leader in biometric liability reinsurance [13]. Capital Management - The company effectively manages capital through share buybacks, dividends, and prudent investments, aiming to balance growth opportunities with shareholder returns [14]. Long-term Outlook - RGA's diversified business model, favorable longevity experience, and effective capital deployment strategies position it well for long-term growth [15].