Reinsurance Group of America, Incorporated (RGA) Fundamental Analysis: Bull vs. Bear Case

RGA

Reinsurance Group of America, Incorporated

Fundamental data last updated:August 26, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Reinsurance

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. The company also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, it develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. The company serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri.

VALUATION

P/E

10.85 Market Cap ($M USD)

$13.18B

Forward P/E

5.51 PEG

0.06 PRICE TO SALES

0.54 PRICE TO BOOK

1.00 EV / EBITDA

7.16 5-Year Average P/E

Free Cash Flow Yield

41.98%

DCF Value

$490.34

Graham Number

$289.76

Price to FCF

2.38 EV to FCF

2.58 Earnings Yield

9.22%

FCF Yield

41.98%

DIVIDEND

Yield

1.85%

Annual Payout

$3.72

Payout Ratio

19.74%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$18.55

Next Year EPS Growth Estimate

$36.50

Next Year Revenue Growth Estimate

$32.77B

Return on Equity (ROE)

9.47%

FREE CASH FLOW

Operating Margin

6.55%

Debt-to-Equity

0.42 Piotroski F-Score

5 Altman Z-Score

0.40 Return on Invested Capital (ROIC)

0.98%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

0.56 Interest Coverage

4.18 Gross Profit margin

20.33%

FCF PER SHARE

$83.75

REVENUE PER SHARE

$372.14

Gainseekers Quantitative Analysis

Summary

RGA’s valuation paints a compelling picture for value investors. The stock has traded significantly below its DCF value and Graham Number, suggesting a market mispricing. With a Forward P/E of 5.82 and an Earnings Yield of 8.81%, the company appears undervalued relative to its earnings potential. However, the Altman Z-score of 0.40 raises red flags about financial distress, indicating potential risks. Despite these concerns, the overall financial health leans towards a bargain for those willing to navigate the uncertainties.

AI Exposure / Tech Reliance

Operating in the reinsurance industry, RGA is positioned to leverage AI for risk assessment and underwriting efficiency. The sector's inherent need for data analytics aligns well with technological advancements. However, the traditional nature of insurance may slow rapid tech adoption.

The Bull Case

For the discerning value investor, RGA offers a tantalizing opportunity. The company boasts a robust FCF Yield of 40.12%, indicating strong cash generation relative to its price. With a Piotroski F-Score of 5, it shows moderate financial strength, and its operating margin of 6.55% suggests efficient management. These metrics highlight RGA's pricing power and capital efficiency, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, RGA faces significant structural risks. The Altman Z-score signals potential financial distress, and the stock's proximity to its 52-week high suggests technical overextension. The Price/Book ratio of 1.05 might not scream overvaluation, but the low ROIC of 0.98% questions the company's ability to generate returns above its cost of capital. These factors could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$243.67

Institutional Ownership %

1-Year Beta

0.50 Insider Buying % (6 Mo)

Distance to 52-Week High

13.89%

Distance to 52-Week Low

17.75%

EARNINGS SURPRISE %

15.59%

50-DAY SMA

$208.17

200-DAY SMA

$200.32

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.