| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 10.9x | 17.8x | Top tier | |
Growth | 76 | 19.4% | 7.1% | Top tier | |
Quality | 69 | — | — | Top tier | |
Safety | 13 | — | — | Bottom tier | |
Capital Return | 53 | 1.50% | 2.12% | Around median | |
Momentum | 89 | 22.8% | 2.9% | Top tier | |
Sentiment | 45 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Reinsurance Group of America (RGA) operates in life and health risk reinsurance, generating revenue from premiums, investment returns, and financial reinsurance solutions. The company combines biometric risk assessment and asset management to cover both sides of clients' balance sheets, with operations spanning the United States and Latin America, Canada, Asia Pacific, and Europe, the Middle East, and Africa. Growth sources include organic flow business, in-force block transactions, Strategic Underwriting Programs, and asset-intensive solutions often linked to biometric liabilities.
In Q2 FY2026, revenue reached $6.6 billion, net income was $462 million, and earnings per share according to EDGAR filings were approximately $7.01, equivalent to an approximate net income margin of 7.0%. On an adjusted operating basis, RGA recorded pre-tax income of $761 million and after-tax earnings per share of $8.89, while trailing 12-month adjusted operating return on equity reached 18.4%, excluding accumulated other comprehensive income and notable items.
Management described Q2 FY2026 as a record operating quarter, with strong performance across regions and both traditional and financial solutions business lines. Asia Pacific benefited from new business and investment income, earnings in Europe, the Middle East, and Africa exceeded management's expectations, while new business and investment income supported United States results. Traditional premiums increased 2.2%, or 0.9% in constant currencies, while total premiums excluding pension risk transfer business grew 10.5% year to date in FY2026, or 9.3% in constant currencies.
The average analyst price target is $265.83, with a wide range of $236 to $291 and a consensus rating of “Buy”; the average and highest target are above the 52-week range high of $251, while the lowest target is below it. No published price-to-earnings ratio is available in the provided data, so the valuation assessment is based on the dispersion of targets and the 52-week range of $178.21 to $251, while balancing optimistic expectations against the risk that variable investment returns and non-recurring items revert to levels closer to plan.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Quarterly revenue reached $6.6 billion, net income was $462 million, and earnings per share according to EDGAR were approximately $7.01. On an adjusted operating basis, the company generated $761 million in pre-tax income and after-tax earnings per share of $8.89. The strength came from new business underwritten during prior years, higher new money yields, variable investment income, and claims that were economically $31 million better than expected. Claims contributed $14 million to period earnings, while other non-recurring items added $71 million.
Management reaffirmed its confidence in the medium-term earnings-per-share growth target of 8% to 10% on the August 7, 2026 call. Its drivers include deploying capital into in-force block transactions and organic business, investment income growth, in-force optimization actions, and returning money to shareholders. The company deployed approximately $500 million into in-force block transactions year to date in FY2026 and said new business returns met or exceeded the target. RGA does not provide specific annual earnings-per-share guidance, so the 8% to 10% range remains a medium-term target rather than a forecast for a single quarter.
Automated analysis for informational purposes only — not investment advice.
The core portfolio yield excluding variable investment income was 4.96% in Q2 FY2026, while the new money yield was 6.02%. This spread provides gradual support for investment income as funds are reinvested. Variable investment income generated an annualized return of 15% in the quarter and 11% year to date in FY2026, exceeding the company's annual assumption of 7%. These results increased management's confidence in meeting or exceeding the 2026 assumption, but it did not raise the official target of 7%.
RGA ended Q2 FY2026 with approximately $2.2 billion in excess capital. During the quarter, it invested $158 million in in-force block transactions and returned $111 million to shareholders, split between $50 million in share repurchases and $61 million in dividends. Total repurchases reached $225 million since the program resumed in Q3 FY2025, and the company announced a 5.4% dividend increase. It also plans to use $400 million of excess capital to repay debt in September 2026.
Management said Strategic Underwriting Programs volumes in the United States are on track to double compared with the prior year. These programs provide exclusive reinsurance opportunities because they use RGA's underwriting capabilities to accelerate and improve risk selection at insurance companies. Management noted that a relationship that began with a request for underwriting support expanded into a larger, long-term in-force block transaction. Excluding non-recurring in-force management actions, United States traditional premiums and total traditional premiums grew 3% year to date in FY2026.
Non-recurring items added $71 million to Q2 FY2026 earnings, while the 15% variable investment income return in the quarter exceeded the 2026 assumption of 7%, making normalization of these 2 factors a risk to the repeatability of the record result. Traditional premium growth was also only 0.9% in constant currencies due to in-force management actions. The company continues to reduce capped cohorts because they increase earnings volatility, despite a 25% reduction in United States exposure since adopting LDTI. In Hong Kong, management said on August 7, 2026 that it was still too early to assess the impact of news related to Chinese tax changes and did not disclose the market's share of the Asia business.
