Reinsurance Group of America (RGA) · Q2 2026 results and valuation

At 10.0% growth a year (3-year revenue growth), the model's fair value is $411.93 a share — the stock trades 34% below it. Today's price assumes 3.9% growth a year.

1. Key theme

   Year-to-date premiums, excluding PRT, grew 10.5% or 9.3% constant currency as the company shifted focus toward biometric underwriting within Financial Solutions.

   Source quote

   “A growing number of deals within Financial Solutions are tied to biometric underwriting, so focusing on traditional premium growth has become... For total premiums, excluding PRT, year-to-date premiums grew 10.5%, or 9.3% constant currency. This quarter, we executed additional in-force actions, and while they did not have a notable overall impact to consolidated earnings, they did cut our exposure to capped blocks.”

2. Guidance

   RGA expects to use $400 million of excess capital to pay down debt this September.

   Source quote

   “we expect to use $400 million of excess capital to pay down debt this September.”

3. Fading

   RGA's performance was supported by favorable experience and momentum in longevity, while EMEA earnings exceeded expectations due to new business.

   Source quote

   “Performance was supported by favorable overall experience and continued momentum in longevity. EMEA’s earnings continue to reflect good new business, with results exceeding expectations. We closed additional longevity transactions during the quarter by leveraging deep, long-standing client relationships, and we remain optimistic given our leadership position and differentiated competitive strengths.”

Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.

Sentences that drove the tone

“I'll note our asset-intensive business is different and tends to be longer duration with a biometric risk element where we have re-underwritten the key assumptions before taking them onto our...”

“Our biometric risk capabilities are second to none and gives us specialized underwriting expertise on these risks.”

“Reducing our exposure to capped cohorts is a priority as it reduces earnings volatility and improves the overall profile and returns of our business.”