Reinsurance Group of America (RGA): Assessing Valuation After Q3 Earnings Growth and Buyback Activity

Reinsurance Group of America (RGA) just reported its third quarter results, highlighting a jump in both revenue and net income compared to last year. Share buybacks were also completed, adding another angle for investors to consider.

See our latest analysis for Reinsurance Group of America.

RGA’s third quarter saw a meaningful turnaround in sentiment, with improved financial results drawing attention even as the company opened a new Manhattan office. Still, the 1-year total shareholder return sits at -15.85%, reflecting a cooling of momentum. Investors who held for the past three or five years are looking at gains of 48% and 80% respectively.

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With improved earnings and a strong buyback program in play, investors are now asking if RGA’s shares are trading below fair value or if the market is already accounting for the company’s future growth prospects.

Most Popular Narrative: 19.7% Undervalued

With Reinsurance Group of America’s shares closing at $190.28 and the narrative’s fair value coming in at $236.89, the narrative sees meaningful upside. But what’s fueling this number? Here’s a look at one of the key drivers that shape this perspective.

RGA is capitalizing on growing insurance demand in Asia and other international markets, as evidenced by robust new business in Hong Kong, Taiwan, Korea, and a record number of asset-intensive transactions across five countries and three continents. This global expansion drives sustained premium growth and strengthens revenue diversification.

Read the complete narrative.

How bold are the expectations embedded here? The full narrative dives into surprising profit margin jumps and ambitious international market moves. Want to see which forecasts have been baked into this price target? Unlock the details and challenge your own assumptions. One overlooked estimate might move the entire story.

Result: Fair Value of $236.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent earnings volatility and rising medical costs could challenge the upbeat outlook. If these trends continue, they may potentially impact future profitability.

Find out about the key risks to this Reinsurance Group of America narrative.

Build Your Own Reinsurance Group of America Narrative

If you’re of a different mind or want to interpret the numbers for yourself, it only takes a few minutes to build your own independent viewpoint. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Reinsurance Group of America.

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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