- Reinsurance Group’s book value per share reached $182.37, surpassing both last year’s value of $147.90 and the estimated $177.55.
- Adjusted operating earnings per share (EPS) stood at $4.72, below last year’s $5.48 and the estimate of $5.54.
- Book value per common share, excluding accumulated other comprehensive income (AOCI), was $155.87, which is up from $148.19 last year but fell short of the $163.46 estimate.
- Total assets increased by 21% year-over-year, amounting to $133.48 billion, beating the $131.32 billion estimate.
- Net premiums grew by 5.9% year-over-year, reaching $4.15 billion, but came below the expected $4.21 billion.
- Investment income surged 30% year-over-year to $1.41 billion, exceeding the estimate of $1.23 billion.
- CEO Tony Cheng cited claims volatility in the U.S. Individual Life business as a reason for the underperformance in the second quarter.
- The company saw a significant increase in estimated excess capital, rising from $1.9 billion to $3.8 billion due to balance sheet optimization.
- New business remained robust, with the Creation Re strategy performing better than expected.
- Market sentiment includes 7 buy ratings and 4 hold ratings, with no sell recommendations.
Reinsurance Group of America on Smartkarma
Analyst coverage on Smartkarma reveals positive sentiment towards Reinsurance Group of America (RGA). According to Baptista Research, RGA showcased a strong performance in the first quarter of 2025, boasting $5.66 per share in adjusted operating earnings and a 15% adjusted operating return on equity. The company’s success was attributed to exceptional underwriting results, favorable claims experience across various regions, and a solid asset portfolio along with robust capital standing amidst macroeconomic uncertainties.
Further insights from Baptista Research delve into RGA’s handling of biometric and longevity risks based on its fourth-quarter 2024 results. The report highlights RGA’s impressive financial performance, with $4.99 per share in adjusted operating earnings and a 15.4% adjusted operating return on equity. Baptista Research also aims to evaluate factors influencing RGA’s future stock price, conducting an independent valuation of the company through a Discounted Cash Flow (DCF) methodology. Overall, analyst sentiment remains bullish on RGA’s resilience and financial health in the competitive market landscape.
A look at Reinsurance Group of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Reinsurance Group of America, Incorporated, a provider of reinsurance services focusing on life and health-related products and financial solutions, has garnered an overall positive outlook based on Smartkarma Smart Scores. With a Value score of 4, the company is deemed to be priced attractively relative to its intrinsic value. Additionally, RGA received a Growth score of 4, indicating strong potential for future growth. Its Resilience score of 3 signifies a moderate level of stability and durability in the face of challenges, while the Momentum score of 3 suggests a steady performance trend.
Investors eyeing the long-term prospects of Reinsurance Group of America can find reassurance in its favorable Smartkarma Smart Scores. Despite a moderate Dividend score of 3, indicating room for improvement in this aspect, the company’s overall outlook remains promising. Serving customers on a global scale, RGA’s strong value, growth potential, and resilience position it well for sustained success in the reinsurance industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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