RGA Stock Trades Above 50-Day SMA: What Should Investors Do?

Reinsurance Group of America, Incorporated RGA has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Dec. 4, 2025, was $192.61, down 17.3% from its 52-week high of $232.97.

The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.

With a market capitalization of $12.73 billion, the average number of shares traded in the last three months was 0.4 million.

RGA Shares are Affordable

RGA shares are trading at a price-to-book value of 0.97X, lower than the industry average of 1.86X, the Finance sector’s 4.23X, and the Zacks S&P 500 Composite’s 8.53X. 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.
 

Shares of Manulife Financial Corp. MFC and Sun Life Financial Inc. SLF are also trading at a discount, while Primerica, Inc. PRI is trading at a multiple higher than the industry average.  

RGA’s Price Performance

Shares of this life insurer have lost 9.8% in the year-to-date period against the industry’s growth of 3.3%.

RGA’s Growth Projection Encourages

The Zacks Consensus Estimate for Reinsurance Group’s 2025 revenues is pegged at $23.55 billion, implying a year-over-year improvement of 3%. 

The consensus estimate for 2026 earnings per share and revenues indicates an increase of 18.1% and 11%, respectively, from the corresponding 2025 estimates. 

Earnings have grown 15.3% in the past five years, better than the industry average of 7.8%.  

Average Target Price for RGA Suggests Upside

Based on short-term price targets offered by 10 analysts, the Zacks average price target is $239.10 per share. The average suggests a potential 26.29% upside from the last closing price.

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 5.52%, higher than the industry average of 0.6%.

Key Points to Note for RGA

Reinsurance Group is a leader in the traditional U.S. and Latin American markets. It has successfully expanded its product line with market-leading services, capabilities, expertise and innovation. Individual mortality has matured, providing a base for stable earnings and capital generation. Significant value embedded in the in-force business is anticipated to generate predictable long-term earnings. Product-line expansion contributes to risk diversification.

In Canada, Reinsurance Group is a market leader with solid growth and profitability. It has a sizable block of in-force business, which is a significant source of future earnings. Reinsurance Group expects longevity insurance, projected to witness steady demand, to experience long-term growth in the Canadian market. While longevity insurance provides a diversified income source, it also acts as a hedge against a large mortality position. 

Demand for protection products among the emerging global middle class and increasing demand for retirement, senior protection and savings products among aging populations create opportunities for growth in new business. 

RGA is well-capitalized and has access to multiple forms of capital. RGA expects to remain active in deploying capital in attractive growth opportunities while balancing returning excess capital to shareholders over time.

Reinsurance Group continues to ramp up technological inclusion with its product. This insurer is a global biometric liability reinsurance leader. Biometrics experience, which includes mortality, morbidity and longevity, over the last five quarters was favorable.

The company’s free cash flow conversion has remained more than 85% over the last few quarters, reflecting its solid earnings.

Wealth Distribution

This global reinsurer has also been managing capital effectively via share buybacks, dividend payments and prudent investments. RGA expects to remain active in deploying capital into attractive growth opportunities in organic flow and in-force block transactions and returning excess capital to shareholders through dividends and share repurchases.

Final Take on RGA

New business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term. 

Its solid growth projections, as well as attractive valuations, are other positives. Coupled with optimistic analyst sentiment and favorable ROIC of the stock, it is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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