Reinsurance Group reported revenue of $6.77 billion for Q4 2025, a 23.4% increase from last year. The earnings per share (EPS) reached $7.75, up from $4.99 a year ago, and beat the Zacks Consensus Estimate of $6.11 billion by +10.86%. The EPS surprise was +32.16%, compared to the consensus estimate of $5.86. In the U.S. and Latin America Financial Solutions, net premiums were $443 million, far exceeding the analyst estimate of $218.7 million. EMEA Financial Solutions reported $263 million in net premiums, surpassing the average analyst estimate of $217.71 million. Other areas also did well, with other revenues in Asia Pacific Financial Solutions at $12 million, compared to an estimated $5.62 million. Net investment income in Asia Pacific Traditional reached $76 million, outperforming the estimate of $74.41 million. Total net investment income was $1.69 billion, easily surpassing the analyst estimate of $1.49 billion. This showed a year-over-year increase of +42.7%. Revenues from net premiums reached $4.78 billion, exceeding the average estimate of $4.37 billion and indicating a year-over-year growth of +15%. Overall, Reinsurance Group (RGA) has delivered outstanding results, significantly exceeding revenue and earnings expectations. The company showed strong performance across nearly all key divisions, particularly in net premiums and investment income. This report highlights a strong business momentum that’s worth noting positively. With the earnings announcement behind us, much of the short-term implied volatility may have been priced into RGA’s options. In the next few weeks, this could create opportunities for traders who sell premium, as the confidence from these solid results may keep future volatility low. The VIX, which measures market fear, has been steady in the mid-teens, indicating a calm market that supports such strategies. Given the company’s strong foundation, selling out-of-the-money put credit spreads is a strategy worth considering. This lets traders collect premium with a bullish-to-neutral outlook on the stock’s direction. The impressive 32% earnings surprise and the fact that U.S. and Latin America net premiums more than doubled analyst estimates provide a solid buffer against potential downturns. This perspective is gaining support, with several investment banks raising their 2026 price targets for RGA after the report. Additionally, the wider economic conditions are favorable, with the Federal Reserve’s interest rate policy in late 2025 likely boosting investment income for insurers, which is evident in RGA’s 42.7% year-over-year increase. We saw a similar trend after strong results in mid-2024 when the stock rose in the following month. For those expecting continued growth, buying call debit spreads provides a defined way to participate in potential gains. This strategy benefits from the positive sentiment and the historical trend of stocks rising after a significant earnings beat. This is especially relevant now, as RGA outperforms the broader financial sector index, which has been stagnant over the past two weeks.

here to set up a live account on VT Markets now