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RGA Hits 52-Week High: Time to Add the Stock for Better Returns?
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Key Takeaways
Reinsurance Group's U.S. strategic underwriting programs are on track to double year over year.
Premiums excluding pension risk transfer grew 9.3% year to date in constant currency.
A 4.96% portfolio yield, $2.2B excess capital and planned debt repayment support capital efficiency.
Reinsurance Group of America, Incorporated (RGA - Free Report) hit a 52-week high of $253.34 on Sept. 2. Shares closed at $252.37 after gaining 27.7% in the past year, outperforming the industry, the sector and the Zacks S&P 500 composite.
Reinsurance Group has outperformed its peers, including Primerica, Inc. (PRI - Free Report) , Lincoln National Corporation (LNC - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) . Shares of PRI, LNC and BHF have gained 7.2%, 2.1% and 21.2%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $16.48 billion, the average number of shares traded in the last three months was 0.3 million.
RGA Trading Above 50-Day and 200-Day Moving Averages
Shares of Reinsurance Group are trading above the 50-day and 200-day simple moving averages (SMA) of $235.70 and $212.67, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
RGA Shares are Affordable
Reinsurance Group shares are trading at a price-to-book value of 1.2X, lower than the industry average of 2.23X, the Finance sector’s 4.42X and the Zacks S&P 500 Composite’s 7.15X. Its pricing, at a discount to the industry average, gives a better entry point for investors. The life insurer has a Value Score of A.
RGA’s Growth Projection Encourages
The Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 28.6%. The consensus estimate for revenues is pegged at $26.88 billion, implying a year-over-year improvement of 12.2%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 0.02% and 4.9%, respectively, from the corresponding 2026 estimates.
Earnings have grown by 26.7% over the past five years, outpacing the industry average of 4.9%.
Average Target Price for RGA Suggests Upside
Based on short-term price targets offered by nine analysts, the Zacks average price target is $272.33 per share. The average suggests a potential 9.93% upside from the last closing price.
Image Source: Zacks Investment Research
Reinsurance Group’s Return on Invested Capital
Its return on invested capital (ROIC) has increased every year, reflecting RGA’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 6.51%, higher than the industry average of 0.6%.
Key Points to Note for RGA
Reinsurance Group is a leader in the U.S. and Latin American traditional market and continues to expand through underwriting services, product capabilities and in-force solutions. In the second quarter of 2026, strategic underwriting program volumes in the United States were on track to double from the prior year, and management said these programs can directly generate reinsurance opportunities. Premiums excluding pension risk transfer grew 9.3% year to date in constant currency, while recent new business continues to contribute to earnings as expected.
Reinsurance Group maintains a sizable Canadian in-force block that provides a source of future earnings, while the longevity business diversifies income and offsets part of its mortality exposure. The combination of traditional life, group business and longevity solutions supports a broad earnings base as the company continues to pursue opportunities in the market.
Reinsurance Group’s net investment income has expanded over time, supported by a larger invested asset base and higher reinvestment rates. In the second quarter of 2026, the core portfolio yield, excluding variable investment income, was 4.96%, while the new money rate reached 6.02%, leaving new investments above the portfolio yield. Management said the year-to-date performance increased confidence in meeting or potentially exceeding that target, while portfolio credit performance remained in line with expectations.
Reinsurance Group’s technology partnerships provide a differentiated growth lever by pairing its insurance expertise with specialist platforms that can improve underwriting efficiency and client service. Insurers continue to modernize claims, underwriting and policy servicing to shorten cycle times and reduce unit costs.
Wealth Distribution
This global reinsurer continues to balance growth investments with shareholder distributions. The company ended the second quarter of 2026 with about $2.2 billion of excess capital and remained well capitalized across internal, regulatory and rating-agency frameworks.
Management continues to target a 20-30% intermediate-term payout ratio and expects to use $400 million of excess capital to repay debt in September 2026, while maintaining flexibility for organic flow and in-force opportunities. This balanced approach supports capital efficiency while preserving capacity for future transactions that meet the company’s risk-return standards.
Conclusion
New business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term.
The stock also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
View the Zacks #1 Rank List
Image: Bigstock
RGA Hits 52-Week High: Time to Add the Stock for Better Returns?
Key Takeaways
Reinsurance Group of America, Incorporated (RGA - Free Report) hit a 52-week high of $253.34 on Sept. 2. Shares closed at $252.37 after gaining 27.7% in the past year, outperforming the industry, the sector and the Zacks S&P 500 composite.
Reinsurance Group has outperformed its peers, including Primerica, Inc. (PRI - Free Report) , Lincoln National Corporation (LNC - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) . Shares of PRI, LNC and BHF have gained 7.2%, 2.1% and 21.2%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $16.48 billion, the average number of shares traded in the last three months was 0.3 million.
RGA Trading Above 50-Day and 200-Day Moving Averages
Shares of Reinsurance Group are trading above the 50-day and 200-day simple moving averages (SMA) of $235.70 and $212.67, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
RGA Shares are Affordable
Reinsurance Group shares are trading at a price-to-book value of 1.2X, lower than the industry average of 2.23X, the Finance sector’s 4.42X and the Zacks S&P 500 Composite’s 7.15X. Its pricing, at a discount to the industry average, gives a better entry point for investors. The life insurer has a Value Score of A.
RGA’s Growth Projection Encourages
The Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 28.6%. The consensus estimate for revenues is pegged at $26.88 billion, implying a year-over-year improvement of 12.2%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 0.02% and 4.9%, respectively, from the corresponding 2026 estimates.
Earnings have grown by 26.7% over the past five years, outpacing the industry average of 4.9%.
Average Target Price for RGA Suggests Upside
Based on short-term price targets offered by nine analysts, the Zacks average price target is $272.33 per share. The average suggests a potential 9.93% upside from the last closing price.
Image Source: Zacks Investment Research
Reinsurance Group’s Return on Invested Capital
Its return on invested capital (ROIC) has increased every year, reflecting RGA’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 6.51%, higher than the industry average of 0.6%.
Key Points to Note for RGA
Reinsurance Group is a leader in the U.S. and Latin American traditional market and continues to expand through underwriting services, product capabilities and in-force solutions. In the second quarter of 2026, strategic underwriting program volumes in the United States were on track to double from the prior year, and management said these programs can directly generate reinsurance opportunities. Premiums excluding pension risk transfer grew 9.3% year to date in constant currency, while recent new business continues to contribute to earnings as expected.
Reinsurance Group maintains a sizable Canadian in-force block that provides a source of future earnings, while the longevity business diversifies income and offsets part of its mortality exposure. The combination of traditional life, group business and longevity solutions supports a broad earnings base as the company continues to pursue opportunities in the market.
Reinsurance Group’s net investment income has expanded over time, supported by a larger invested asset base and higher reinvestment rates. In the second quarter of 2026, the core portfolio yield, excluding variable investment income, was 4.96%, while the new money rate reached 6.02%, leaving new investments above the portfolio yield. Management said the year-to-date performance increased confidence in meeting or potentially exceeding that target, while portfolio credit performance remained in line with expectations.
Reinsurance Group’s technology partnerships provide a differentiated growth lever by pairing its insurance expertise with specialist platforms that can improve underwriting efficiency and client service. Insurers continue to modernize claims, underwriting and policy servicing to shorten cycle times and reduce unit costs.
Wealth Distribution
This global reinsurer continues to balance growth investments with shareholder distributions. The company ended the second quarter of 2026 with about $2.2 billion of excess capital and remained well capitalized across internal, regulatory and rating-agency frameworks.
Management continues to target a 20-30% intermediate-term payout ratio and expects to use $400 million of excess capital to repay debt in September 2026, while maintaining flexibility for organic flow and in-force opportunities. This balanced approach supports capital efficiency while preserving capacity for future transactions that meet the company’s risk-return standards.
Conclusion
New business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term.
Coupled with solid growth projections, attractive valuations, and a favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.