RGA

Reinsurance Group of America is a leading global life and health reinsurer with $157B of assets across the US, Canada, EMEA and Asia Pacific. FY2025 was a strong year: revenue grew 7.2% to $23.7B and net income surged 64.9% to $1.18B, lifting diluted EPS to $17.69. The franchise is scaling — total assets jumped 31.9% and equity rose 24.5% to $13.5B — aided by the July 2025 transaction with subsidiaries of Equitable Holdings, which expands the in-force block. Retained earnings of $10.2B (+9.7%) and a steadily rising dividend ($240M, +4.8%) reflect durable capital generation.

The valuation is the draw. At $210.54 the stock trades at just 11.9x EPS and 0.6x sales for a business that grew earnings 65% and is compounding book value. Insurance earnings are inherently lumpy — net income swung from $1.17B (2021) to $517M (2022) to $1.18B (2025) — but the multi-year trajectory of revenue (from $16.7B to $23.7B) and the rebound in 2025 point to a healthy underwriting and investment engine. The 10.63x liabilities/equity ratio looks extreme to industrial eyes but is normal leverage for a reinsurer whose liabilities are policy reserves backed by a large invested asset base, and management describes collateral, financing and liquidity resources as more than sufficient under stress.