Reinsurance Group of America (RGA)
NYSEFinancialsInsurance - ReinsuranceSnapshot 2026-09-04
$253.27-1.03%
Close 2026-09-04 · 1-day change
NYSEFinancialsInsurance - ReinsuranceSnapshot 2026-09-04
Intact: The reason to own it still holds.
RGA grows earnings steadily with net income rising to $1.18 billion in 2025. Adjusted income per share rose from $5.66 to $6.97 in one year. The company returns cash with dividends at $0.93 per share. The stock trades cheap with a PE of 9.55 versus peers at 12.77.
Earnings could fall if reinsurance losses rise or capital costs increase. Dividend growth may stall if cash flow weakens. The stock could stay cheap if growth slows below 9%.
The price is about 16% below our fair value near $274. Analysts expect about 9% revenue growth. Our fair value is slightly above the Street median of $264.
Breaks if: EPS falls below $5.66 in any quarter after 2026-Q1
Focus on sustainable earnings growth and prudent capital deployment to generate strong risk-adjusted returns and create long-term shareholder value.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on sustainable earnings growth and disciplined capital allocation. The current thesis is intact, bolstered by recent strong financial results and a commitment to returning capital to shareholders.
The market currently prices RGA as cheap compared to its peers, with a slight expectations gap indicating that some caution is warranted. The valuation reflects a low fragility tier, suggesting that while the execution quality is weak, it is not fully priced into the stock.
Fundamentals are likely to show continued strength, as management has emphasized sustainable growth and increased dividends. However, there is a moderate risk of earnings misses, given the recent trend of declining earnings surprises.
The thesis hinges on the performance of sector bellwethers like EG, RNR, and SPNT. If these companies continue to beat earnings and guide higher, RGA may benefit from the positive momentum in the Financials sector.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the view of sustainable earnings growth. Investment returns and new business drive this growth, reinforcing the positive outlook. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Net income available to RGA shareholders grew from $330 million in 2026-Q1 to $462 million in 2026-Q2, while adjusted operating income per diluted share increased from $6.97 to $8.89. Management has consistently emphasized sustainable growth and disciplined capital allocation, and the financial results show delivering progress against this priority.
“Our focus remains on sustainable earnings growth and disciplined capital allocation.”
“Our focus remains on sustainable earnings growth and disciplined capital allocation.”
“Since 2023, our financial metrics are tracking at or ahead of our targets, giving us confidence.”
Breaks if: Dividend falls below $0.89 per share in any quarter after 2026-Q1
Maintain and increase regular quarterly dividends to return capital to shareholders.
Stated as a priority in 3 of last 3 quarters. The quarterly dividend increased from $0.93 in 2026-Q1 to $0.98 in 2026-Q2, reflecting management's commitment to returning capital to shareholders. The trajectory matches management's stated priority of increasing dividends.
“Board declared a regular quarterly dividend of $0.98, a 5.4% increase.”
“Board declared a regular quarterly dividend of $0.93, payable June 2, 2026.”
“Board declared a regular quarterly dividend of $0.93, payable March 3, 2026.”
Breaks if: Net income falls below $286 million in any quarter after 2026-Q1
Focus on sustainable earnings growth and prudent capital deployment to generate strong risk-adjusted returns and create long-term shareholder value.
Stated as a priority in 3 of last 3 quarters. Net income available to RGA shareholders grew from $330 million in 2026-Q1 to $462 million in 2026-Q2, while adjusted operating income per diluted share increased from $6.97 to $8.89. Management has consistently emphasized sustainable growth and disciplined capital allocation, and the financial results show delivering progress against this priority.
“Our focus remains on sustainable earnings growth and disciplined capital allocation.”
“Our focus remains on sustainable earnings growth and disciplined capital allocation.”
“Since 2023, our financial metrics are tracking at or ahead of our targets, giving us confidence.”
Breaks if: Repurchases fall below $125 million annually after 2025
Authorized a share repurchase program for up to $500 million to return capital and manage capital structure.
Stated as a priority in 3 of last 3 quarters. The board authorized a $500 million share repurchase program in 2025-Q4, and management repurchased $50 million of shares in both 2026-Q1 and 2026-Q2. The repurchase activity demonstrates delivering on the authorization, though at a measured pace.
“Returned $50 million of shares repurchased in the quarter.”
“Repurchased $50 million of common shares.”
“Board authorized a share repurchase program for up to $500 million.”
Overall, RGA's outlook remains positive over the next 1 to 3 years, but it is essential to monitor sector performance closely. Not investment advice.