Global life reinsurance provider Reinsurance Group of America (NYSE: RGA) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 8.7% year on year to $6.20 billion. Its non-GAAP profit of $6.37 per share was 10.4% above analysts’ consensus estimates.
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Reinsurance Group of America (RGA) Q3 CY2025 Highlights:
- Net Premiums Earned: $4.28 billion vs analyst estimates of $4.66 billion (2.5% year-on-year decline, 8.1% miss)
- Revenue: $6.20 billion vs analyst estimates of $6.06 billion (8.7% year-on-year growth, 2.4% beat)
- Pre-tax Profit: $320 million (5.2% margin, 49.5% year-on-year growth)
- Adjusted EPS: $6.37 vs analyst estimates of $5.77 (10.4% beat)
- Book Value per Share: $197.52 vs analyst estimates of $157.58 (16.9% year-on-year growth, 25.3% beat)
- Market Capitalization: $12.53 billion
Tony Cheng, President and Chief Executive Officer, commented, “The record third quarter operating results were strong, and above expectations. A number of our businesses performed very well, particularly Asia Traditional and EMEA and U.S. Financial Solutions. Also, as a reminder, the Equitable transaction closed in the quarter, and our results reflected the expected earnings contribution from that block. We continued to have very good momentum overall and benefited from the earnings diversity that comes from our global platform. New business in the quarter remained strong, and our success with exclusive client arrangements is a good indicator of our competitive strength and unique position in the market.
Company Overview
Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.
Revenue Growth
Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Luckily, Reinsurance Group of America’s revenue grew at a solid 9.6% compounded annual growth rate over the last five years. Its growth beat the average insurance company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Reinsurance Group of America’s annualized revenue growth of 11.4% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Reinsurance Group of America reported year-on-year revenue growth of 8.7%, and its $6.20 billion of revenue exceeded Wall Street’s estimates by 2.4%.
Net premiums earned made up 77.3% of the company’s total revenue during the last five years, meaning insurance operations are Reinsurance Group of America’s largest source of revenue.
Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.
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Book Value Per Share (BVPS)
Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Reinsurance Group of America’s BVPS was flat over the last five years. However, BVPS growth has accelerated recently, growing by 27% annually over the last two years from $122.40 to $197.52 per share.
Over the next 12 months, Consensus estimates call for Reinsurance Group of America’s BVPS to shrink by 12.3% to $157.58, a sour projection.
Key Takeaways from Reinsurance Group of America’s Q3 Results
We were impressed by how significantly Reinsurance Group of America blew past analysts’ book value per share expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its net premiums earned missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $189 immediately after reporting.
Indeed, Reinsurance Group of America had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
