A Look At Reinsurance Group of America (RGA) Valuation After Its Recent Share Price Momentum

Reinsurance Group of America: Recent Performance Snapshot

Reinsurance Group of America (RGA) has drawn investor attention after a period of strong share price performance, with the stock showing positive returns over the past week, month, past 3 months, and year to date.

See our latest analysis for Reinsurance Group of America.

The recent 9.4% 1 day share price return, on top of a 21.23% 3 month share price return and a 122.00% 5 year total shareholder return, points to momentum that has been building rather than fading, as investors reassess both growth prospects and risk around RGA at a share price of $225.36.

If RGA's strong run has you thinking about what else might be moving, this could be a good moment to broaden your search with our screen of 22 top founder-led companies.

With RGA trading at $225.36, annual revenue of $22.3b and net income of $867m, the key question now is simple: are you looking at an undervalued reinsurer or a stock already pricing in its future growth?

Most Popular Narrative: 4.9% Undervalued

The most followed narrative currently sees Reinsurance Group of America's fair value at $236.89, slightly above the recent $225.36 share price, and builds a case around growth, margins and capital use.

RGA is capitalizing on growing insurance demand in Asia and other international markets, as evidenced by robust new business in Hong Kong, Taiwan, Korea, and a record number of asset-intensive transactions across five countries and three continents; this global expansion drives sustained premium growth and strengthens revenue diversification.

Read the complete narrative.

Curious what underpins that value gap? The narrative leans on faster compounding earnings, thicker margins, and a future earnings multiple that is not especially aggressive. The key inputs are all laid out there, but the exact mix of growth and profitability assumptions is where things get interesting.

Result: Fair Value of $236.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear pressure points, including volatile U.S. life and healthcare excess claims and rising medical costs. These factors could squeeze margins and unsettle earnings expectations.

Find out about the key risks to this Reinsurance Group of America narrative.

Build Your Own Reinsurance Group of America Narrative

If you see the numbers differently or simply prefer to test your own assumptions, you can build a complete RGA narrative in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Reinsurance Group of America.

Looking for more investment ideas?

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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.

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