What Happened?

Shares of global life reinsurance provider Reinsurance Group of America (NYSE: RGA) jumped 7.4% in the morning session after the company reported fourth-quarter 2025 financial results that significantly surpassed Wall Street's expectations. 

For the quarter, the life and health reinsurance provider posted revenue of $6.64 billion, representing 20.9% growth year-over-year and beating analyst forecasts. The company's profitability was even more impressive, with adjusted earnings per share (EPS) of $7.75, which crushed the consensus estimate of $5.75 by nearly 35%. Key metrics like net premiums earned also grew by a hearty 15% year-over-year, while book value per share came in well ahead of estimates. The stock's reaction suggests investors were pleased with the strong top- and bottom-line performance across the board.

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What Is The Market Telling Us

Reinsurance Group of America’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 5% on the news that the company reported underwhelming earnings. 

The company's revenue grew 8.7% year over year to $6.20 billion, and its adjusted earnings per share of $6.37 beat consensus estimates. However, investors appeared to focus on weaker underlying trends. A key concern was the 2.5% year-over-year decline in net premiums earned to $4.28 billion, a core metric that also missed analyst forecasts. This drop suggested potential weakness in its main insurance operations. Furthermore, while book value per share saw strong growth in the quarter, analysts project it will shrink by 12.3% over the next 12 months, raising concerns about future shareholder value. These negative signals likely overshadowed the headline beats, leading to the stock's decline.

Reinsurance Group of America is up 11.2% since the beginning of the year, and at $226.28 per share, it is trading close to its 52-week high of $230.49 from February 2025. Investors who bought $1,000 worth of Reinsurance Group of America’s shares 5 years ago would now be looking at an investment worth $2,016.

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