Reinsurance Group of America (RGA) closed FY 2025 with fourth quarter revenue of US$6.6b and basic EPS of US$7.06, alongside net income of US$463m, setting a clear marker for how the year wrapped up. Over the past six reported quarters, revenue has ranged from US$5.2b to US$6.6b while trailing twelve month EPS moved from US$10.90 to US$17.94. This gives you a clean view of how the top line and per share earnings have tracked together into the latest print. With trailing net profit margin at 5% and the combined ratio at 107% on a twelve month basis, the results put the focus firmly on how efficiently RGA is converting premiums into lasting profitability.

See our full analysis for Reinsurance Group of America.

With the headline numbers set, the next step is to line these results up against the most common stories around RGA, highlighting where the data backs those narratives and where it pushes back.

TTM earnings climb to US$1.2b on stronger margin

• On a trailing twelve month basis, net income reached US$1.2b on US$23.7b of revenue, giving a 5% net profit margin compared with 3.2% a year earlier.
• Supporters of the bullish view point to this higher margin alongside trailing EPS of US$17.94, and argue that catalysts like capital deployment and new solutions could support further earnings strength. However, the 107% combined ratio over the same period shows claims and expenses still press on profitability and limit how far that argument can stretch.
  • The bullish narrative talks about structurally higher margins. In contrast, the current 5% net margin and 107% combined ratio suggest underwriting efficiency is still a key area investors need to watch.
  • At the same time, trailing earnings growth of 64.9% versus a 5 year average of 8.8% per year heavily supports the idea that recent profitability has been much stronger than the longer run trend.

Supporters who think that earnings growth and margin improvement are just getting started will want to see how that story is laid out in detail in the 🐂 Reinsurance Group of America Bull Case.

Quarterly EPS swings against claims volatility story

• Across FY 2025, quarterly basic EPS moved from US$4.33 in Q1 to US$2.73 in Q2, US$3.83 in Q3 and US$7.06 in Q4, while the combined ratio ranged from 105.3% to 112.9% in the first three quarters before landing at 107% on a trailing basis.
• Critics in the bearish camp highlight ongoing earnings and claims volatility as a key concern, and the pattern of EPS and combined ratios in 2025 gives them material support while also showing some counterpoints.
  • The jump from US$2.73 EPS in Q2 to US$7.06 in Q4, alongside combined ratios as high as 112.9% earlier in the year, aligns with the bearish view that results can swing meaningfully from quarter to quarter.
  • However, trailing net income of US$1.2b compared with US$717m a year earlier suggests that even with choppy quarters, overall earnings across the year ended at a higher level than the prior period bears focus on.

If you are weighing how much those swings matter for long term potential, it is worth seeing how skeptics frame the risk side of the story in the 🐻 Reinsurance Group of America Bear Case.

Valuation gap between P/E and DCF fair value

• At a share price of US$212.81, RGA trades on a P/E of 11.8x versus a sector figure of 11.4x and a peer average of 6.3x, while a DCF fair value of US$805.88 in the dataset sits far above the current price.
• What stands out when testing bullish and bearish narratives against these figures is the tension between a premium P/E versus peers and the very large gap to DCF fair value, which both sides interpret differently.
  • Bears point to the 11.8x P/E being materially higher than the 6.3x peer average as a sign that RGA already carries a valuation premium compared with similar insurers.
  • Bulls, on the other hand, highlight the DCF fair value of US$805.88 and the 64.9% trailing earnings growth as reasons they see more upside potential than the current P/E alone suggests.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Reinsurance Group of America on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between bullish and bearish narratives, it makes sense to look at the data directly and decide how convincing each side feels. If you want a quick way to see what investors are optimistic about, start by reviewing the 4 key rewards

See What Else Is Out There

RGA's 107% combined ratio, earnings swings and premium P/E versus peers highlight ongoing pressure on underwriting efficiency and the risk that results remain choppy.

If you want ideas that aim for steadier profitability and potentially fewer surprises, check out 72 resilient stocks with low risk scores to compare companies with more resilient profiles today.

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.