Global life reinsurance provider Reinsurance Group of America (NYSE: RGA) reported revenue ahead of Wall Street’s expectations in Q3 2026, with revenue up 20.8% year on year to $7.55 billion. Its non-GAAP profit of $8.49 per share was 22.2% above analysts’ consensus estimates.

For more on Reinsurance Group of America, read our full research report, available free.

“These results reinforce the strategic advantages of RGA’s diversified platform and our ability to generate attractive, risk-adjusted returns across a range of market environments. We continued to maintain our disciplined approach to capital deployment with a focus on high return, quality business as well as shareholder returns. Our pipeline for both in-force and flow business remains healthy and supports our confidence in RGA continuing to deliver strong financial results for the remainder of 2026 and beyond.”

Revenue growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities or other value-added services. Over the last five years, Reinsurance Group of America grew its revenue at a strong 12% compounded annual growth rate. Its growth beat the average insurance company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Reinsurance Group of America’s annualized revenue growth of 11.3% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Reinsurance Group of America reported strong year-on-year revenue growth of 20.8%, and its $7.55 billion of revenue topped Wall Street’s consensus estimates by 14.1%.

Net premiums earned made up 75.2% of the company’s total revenue during the last five years, meaning insurance operations are Reinsurance Group of America’s largest source of revenue.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

Book value per share

Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share, or BVPS, captures this dynamic by measuring these assets (investment portfolio, cash and reinsurance recoverables) less liabilities (claim reserves, debt and future policy benefits). BVPS is essentially the residual value for shareholders.

BVPS is therefore a key metric to track for insurers and sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly used metrics like earnings per share, or EPS.

Reinsurance Group of America’s BVPS declined at a 1.3% annual rate over the last five years. However, BVPS growth has accelerated recently, growing by 2.9% annually over the last two years from $168.94 to $178.89 per share.

Over the next 12 months, consensus estimates call for Reinsurance Group of America’s BVPS to grow by 11% to $178.51, a decent growth rate.

Key takeaways from Reinsurance Group of America’s Q3 results

Reinsurance Group of America delivered a solid quarter, with net premiums earned beating Wall Street’s consensus estimates by a wide margin and EPS also topping analysts’ consensus estimates. Shares remained flat at $262.50 immediately after the results.

Reinsurance Group of America reported solid earnings, but one quarter doesn’t necessarily make the stock a buy. Evaluating the investment requires a broader view. When making that decision, it’s important to consider its valuation and business quality as well as what happened in the latest quarter. For more on those factors, read the full research report here (it’s free).