Global life reinsurance provider Reinsurance Group of America (NYSE: RGA) announced better-than-expected revenue in Q4 CY2025, with sales up 20.9% year on year to $6.64 billion. Its non-GAAP profit of $7.75 per share was 34.8% above analysts’ consensus estimates.

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Tony Cheng, President and Chief Executive Officer, commented, “A very strong fourth quarter capped off another year of excellent financial results. This was another quarter with positive contributions from most of our business segments, demonstrating the strength and diversity of our global platform and local teams. I am gratified that the collective efforts of the global RGA team have produced results that we all can be proud of.

Company Overview

Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment 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. Luckily, Reinsurance Group of America’s revenue grew at a solid 10.3% compounded annual growth rate over the last five years. 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 11.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Reinsurance Group of America reported robust year-on-year revenue growth of 20.9%, and its $6.64 billion of revenue topped Wall Street estimates by 4.4%.

Net premiums earned made up 76.8% of the company’s total revenue during the last five years, meaning insurance operations are Reinsurance Group of America’s largest source of revenue.

Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.

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Book Value Per Share (BVPS)

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

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Reinsurance Group of America’s BVPS was flat over the last five years. However, BVPS growth has accelerated recently, growing by 21.9% annually over the last two years from $138.39 to $205.63 per share.

Over the next 12 months, Consensus estimates call for Reinsurance Group of America’s BVPS to shrink by 11.4% to $163.27, a sour projection.

Key Takeaways from Reinsurance Group of America’s Q4 Results

We were impressed by how significantly Reinsurance Group of America blew past analysts’ book value per share expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 4.5% to $215.29 immediately following the results.

Reinsurance Group of America may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).