Global life reinsurance provider Reinsurance Group of America (NYSE: RGA) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
Reinsurance Group of America missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $5.34 billion, down 17.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates.
Is Reinsurance Group of America a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Reinsurance Group of America’s revenue to grow 9.8% year on year to $5.62 billion, slowing from the 19.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.55 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Reinsurance Group of America has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Reinsurance Group of America’s peers in the insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RenaissanceRe delivered year-on-year revenue growth of 13.4%, beating analysts’ expectations by 8.7%, and AXIS Capital reported revenues up 12.6%, in line with consensus estimates. RenaissanceRe’s stock price was unchanged following the results.
Read our full analysis of RenaissanceRe’s results here and AXIS Capital’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.1% on average over the last month. Reinsurance Group of America is down 2.3% during the same time and is heading into earnings with an average analyst price target of $244.44 (compared to the current share price of $193.79).
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