Title
Earning Preview: Reinsurance Group of America — this quarter’s revenue is expected to increase by 16.87%, and institutional views are bullish
Abstract
Reinsurance Group of America will release its quarterly results on February 05, 2026 Post Market, with consensus pointing to sustained year-over-year expansion in revenue and adjusted EPS as investors evaluate momentum in underwriting earnings and investment income against margin stability.
Market Forecast
Consensus expectations for Reinsurance Group of America indicate quarterly revenue of 6.34 billion US dollars, up 16.87% year over year, and adjusted EPS of 5.75, up 9.23% year over year; EBIT is projected at 523.00 million US dollars, implying 6.09% year-over-year growth. Forecasts for gross profit margin and net profit margin are not provided in the available estimates.
The main business is expected to remain anchored by net premiums, which totaled 4.28 billion US dollars last quarter and represented the majority of revenue; the outlook implies continued organic expansion consistent with the revenue growth forecast, with margin trajectory unspecified. Investment income, which reached 1.48 billion US dollars last quarter, is poised to be the most promising earnings lever as reinvestment yields continue to support portfolio returns; year-over-year detail for this line item has not been disclosed in the available forecasts.
Last Quarter Review
Reinsurance Group of America reported revenue of 6.20 billion US dollars, a gross profit margin of 12.02%, GAAP net profit attributable to the parent company of 253.00 million US dollars, a net profit margin of 4.08%, and adjusted EPS of 6.37, up 3.92% year over year.
A key financial highlight was a quarter-on-quarter net profit increase of 40.56%, accompanied by revenue outperforming consensus by 0.29 billion US dollars and adjusted EPS topping estimates by 0.58. In business mix, net premiums contributed 4.28 billion US dollars, or 68.99% of total revenue, investment income added 1.48 billion US dollars, and “other” revenue reached 436.00 million US dollars; while segment-level year-over-year changes were not provided, total revenue advanced 9.79% year over year.
Current Quarter Outlook
Main business: underwriting earnings and net premiums trajectory
Reinsurance Group of America’s revenue base is led by net premiums, which delivered 4.28 billion US dollars last quarter and accounted for 68.99% of the total. The current-quarter revenue projection of 6.34 billion US dollars, up 16.87% year over year, indicates expectations for sustained policy volume and stable pricing dynamics feeding into top-line growth. Adjusted EPS of 5.75, up 9.23% year over year, implies steady underwriting contribution despite typical seasonal variability between quarters and reflects a balance between growth in earned premiums and expenses. The gross profit margin of 12.02% and net profit margin of 4.08% in the previous quarter provide a baseline for assessing the durability of underwriting margins; while no explicit margin forecasts are available, the revenue and EPS projections together suggest that profitability remains resilient without assuming outsized margin gains. Execution in core mortality and morbidity lines, expense discipline, and the mix of renewal versus new treaties will shape how the premium growth converts to earnings in the period being reported.
Most promising business: investment income and reinvestment yield tailwinds
Investment income reached 1.48 billion US dollars last quarter, forming a significant secondary pillar of earnings power that is leveraged to prevailing yield levels and reinvestment opportunities across the portfolio. The current-quarter outlook benefits from a still-supportive rate environment for fixed income reinvestment, which, in combination with portfolio growth tied to higher reserves from expanding in-force business, can underpin steady or modestly higher net investment income. EBIT is forecast at 523.00 million US dollars, up 6.09% year over year, consistent with a scenario in which investment income remains constructive but avoids assuming extraordinary gains. While year-over-year growth for the investment income line itself is not separately disclosed, the aggregate revenue and adjusted EPS growth estimates embed a positive contribution from the investment book. Potential variability from alternative investments and mark-to-market items is an ongoing consideration, but the forecasts point to stable core investment performance as a supportive force for earnings quality and cash generation in this quarter.
Key stock price drivers this quarter
Investors are likely to focus on the relationship between top-line expansion and margin quality, testing whether last quarter’s 12.02% gross profit margin and 4.08% net profit margin can be sustained or improved as revenue steps up to the projected 6.34 billion US dollars. Adjusted EPS of 5.75, up 9.23% year over year, sets a benchmark for evaluating underlying earnings power relative to realized investment gains or losses and any one-time items. The magnitude of any deviations versus consensus on revenue or adjusted EPS will be central to the stock reaction, as will commentary on underwriting experience and the cadence of new business wins. Management’s narrative on expense efficiency, capital deployment, and the balance of organic versus transactional growth can also influence the valuation framework that investors apply to forward earnings.
Analyst Opinions
Based on the balance of previews during the eligible window and the prevailing consensus profile, opinions skew bullish, with the majority anticipating year-over-year growth in both revenue and adjusted EPS and highlighting steady investment income as a supportive factor. The constructive stance effectively reflects the 16.87% revenue growth estimate, the 9.23% adjusted EPS growth estimate, and the implied resilience of earnings capacity even without explicit margin expansion guidance. Bullish commentary emphasizes that top-line acceleration, combined with a measured step-down in adjusted EPS from the prior quarter’s 6.37 to a forecast 5.75, remains consistent with a healthy run-rate and manageable variability between quarters. The dominant view also notes that EBIT of 523.00 million US dollars, up 6.09% year over year, sits comfortably with an outlook in which underwriting results and investment income collectively drive incremental growth. On this basis, the majority view is bullish, while the minority concerns point to the potential for quarter-specific variability in investment-related items and the normal ebb and flow of claim experience, which could influence reported margins.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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