We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RGA Q1 Earnings & Revenues Top Estimates on Higher Investment Income
Read MoreHide Full Article
Key Takeaways
RGA Q1 adjusted EPS jumped 21.9% y/y and beat estimates on strong revenue growth.
Financial Solutions growth across the United States, EMEA and Asia/Pacific boosted RGA's results.
RGA repurchased $50M in shares and raised its quarterly dividend to 93 cents.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter.
RGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.
RGA reported strong first-quarter results, driven by solid growth in Financial Solutions businesses across the United States, EMEA and the Asia/Pacific, along with higher investment income and premium growth. However, higher expenses and weakness in the United States and Latin America Traditional segment partially offset the strong performance.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%.
Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The increase was driven by a larger average invested asset base and higher earned yields. The average investment yield increased to 4.93% from 4.64% in the prior-year period, driven by higher variable investment income.
Total benefits and expenses increased 23.8% year over year to $6.1 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses, and Interest credited.
Quarterly Segmental Update
U.S. and Latin America: Total pre-tax adjusted operating income was $256 million, which increased 23.7% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $138 million, which decreased 1.4% year over year. Net premiums increased 0.6% from the year-ago quarter to $1.9 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 76% to $118 million.
Canada: Total pre-tax adjusted operating income rose 11.6% year over year to $48 million.
The Traditional segment delivered a 18.7% year-over-year increase in pre-tax adjusted operating income to $48 million. Net premiums grew 6.3% to $339 million, benefiting from a $2 million favorable impact from foreign currency exchange rates during the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income decreased 9.1% year over year to $10 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating income grew 30% to $182 million.
Pre-tax adjusted operating profit of the Traditional segment was $54 million, higher than the year-ago quarter’s profit of $50 million. Foreign currency exchange rates had a favorable effect of $5 million on adjusted operating income before taxes. Premiums increased 12% to $605 million. Foreign currency exchange rates had a favorable effect on net premiums of $43 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 42.2% year over year to $128 million. Foreign currency exchange rates had a favorable effect of $8 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income rose nearly 15.5% from the year-ago quarter’s level to $190 million.
The Traditional segment’s pre-tax adjusted operating income rose 17.9% year over year to $125 million, including a $1 million favorable impact from foreign currency exchange rates. Premiums increased 10.7% to $860 million. Foreign currency exchange rates had a favorable effect on net premiums of $18 million for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 10.2% to $65 million. Foreign currency exchange rates had an immaterial impact of $1 million on adjusted operating income before taxes.
Corporate and Other: Pre-tax adjusted operating loss totaled $65 million, reflecting an improvement from a loss of $70 million in the year-ago quarter. Results were unfavorable relative to the expected quarterly average run rate, primarily due to compensation expenses and unfavorable variable investment income.
RGA’s Financial Update
As of March 31, 2026, total assets were $164 billion, up 4.8% from the 2025-end level.
Book value per share, excluding accumulated other comprehensive income, increased 1.8% to $167.60 from the 2025-end level.
Adjusted operating return on equity was 15.2%, representing a 50-basis-point year-over-year increase.
RGA’s Capital Deployment
Reinsurance Group repurchased shares of $50 million in the first quarter.
The company’s board of directors declared a quarterly dividend of 93 cents. Effective May 5, 2026, the dividend will be paid out on June 2, 2026, to shareholders of record as of May 19, 2026.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year.
Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million. Meanwhile, fee income of $604 million rose 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter.
Arthur J. Gallagher & Co. (AJG - Free Report) reported first-quarter 2026 adjusted net earnings of $4.47 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 21.8% on a year-over-year basis.
Total revenues of $4.7 billion beat the Zacks Consensus Estimate by 1.4%. The top line also improved 28.1% year over year, driven by higher commissions, fees, supplemental revenues, and contingent revenues.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%.
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale & Specialty. Our estimate was $4.8 billion.Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
RGA Q1 Earnings & Revenues Top Estimates on Higher Investment Income
Key Takeaways
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter.
RGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.
RGA reported strong first-quarter results, driven by solid growth in Financial Solutions businesses across the United States, EMEA and the Asia/Pacific, along with higher investment income and premium growth. However, higher expenses and weakness in the United States and Latin America Traditional segment partially offset the strong performance.
Reinsurance Group of America, Incorporated Price, Consensus and EPS Surprise
Reinsurance Group of America, Incorporated price-consensus-eps-surprise-chart | Reinsurance Group of America, Incorporated Quote
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%.
Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The increase was driven by a larger average invested asset base and higher earned yields. The average investment yield increased to 4.93% from 4.64% in the prior-year period, driven by higher variable investment income.
Total benefits and expenses increased 23.8% year over year to $6.1 billion on higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, other operating expenses, and Interest credited.
Quarterly Segmental Update
U.S. and Latin America: Total pre-tax adjusted operating income was $256 million, which increased 23.7% year over year.
The Traditional segment reported a pre-tax adjusted operating income of $138 million, which decreased 1.4% year over year. Net premiums increased 0.6% from the year-ago quarter to $1.9 billion.
The Financial Solutions segment’s pre-tax adjusted operating income increased 76% to $118 million.
Canada: Total pre-tax adjusted operating income rose 11.6% year over year to $48 million.
The Traditional segment delivered a 18.7% year-over-year increase in pre-tax adjusted operating income to $48 million. Net premiums grew 6.3% to $339 million, benefiting from a $2 million favorable impact from foreign currency exchange rates during the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income decreased 9.1% year over year to $10 million. Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
EMEA: Total pre-tax adjusted operating income grew 30% to $182 million.
Pre-tax adjusted operating profit of the Traditional segment was $54 million, higher than the year-ago quarter’s profit of $50 million. Foreign currency exchange rates had a favorable effect of $5 million on adjusted operating income before taxes. Premiums increased 12% to $605 million. Foreign currency exchange rates had a favorable effect on net premiums of $43 million for the quarter.
The Financial Solutions pre-tax adjusted operating income increased 42.2% year over year to $128 million. Foreign currency exchange rates had a favorable effect of $8 million on adjusted operating income before taxes.
Asia/Pacific: Total pre-tax adjusted operating income rose nearly 15.5% from the year-ago quarter’s level to $190 million.
The Traditional segment’s pre-tax adjusted operating income rose 17.9% year over year to $125 million, including a $1 million favorable impact from foreign currency exchange rates. Premiums increased 10.7% to $860 million. Foreign currency exchange rates had a favorable effect on net premiums of $18 million for the quarter.
The Financial Solutions segment’s pre-tax adjusted operating income increased 10.2% to $65 million. Foreign currency exchange rates had an immaterial impact of $1 million on adjusted operating income before taxes.
Corporate and Other: Pre-tax adjusted operating loss totaled $65 million, reflecting an improvement from a loss of $70 million in the year-ago quarter. Results were unfavorable relative to the expected quarterly average run rate, primarily due to compensation expenses and unfavorable variable investment income.
RGA’s Financial Update
As of March 31, 2026, total assets were $164 billion, up 4.8% from the 2025-end level.
Book value per share, excluding accumulated other comprehensive income, increased 1.8% to $167.60 from the 2025-end level.
Adjusted operating return on equity was 15.2%, representing a 50-basis-point year-over-year increase.
RGA’s Capital Deployment
Reinsurance Group repurchased shares of $50 million in the first quarter.
The company’s board of directors declared a quarterly dividend of 93 cents. Effective May 5, 2026, the dividend will be paid out on June 2, 2026, to shareholders of record as of May 19, 2026.
RGA’s Zacks Rank
RGA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year.
Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million. Meanwhile, fee income of $604 million rose 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter.
Arthur J. Gallagher & Co. (AJG - Free Report) reported first-quarter 2026 adjusted net earnings of $4.47 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 21.8% on a year-over-year basis.
Total revenues of $4.7 billion beat the Zacks Consensus Estimate by 1.4%. The top line also improved 28.1% year over year, driven by higher commissions, fees, supplemental revenues, and contingent revenues.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%.
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale & Specialty. Our estimate was $4.8 billion.Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.