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RGA (Reinsurance Group of America) Degree of Operating Leverage : 1.29 (As of Mar. 2025)


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What is Reinsurance Group of America Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Reinsurance Group of America's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Reinsurance Group of America's Degree of Operating Leverage or its related term are showing as below:

RGA's Degree of Operating Leverage is ranked worse than
56.3% of 341 companies
in the Insurance industry
Industry Median: 0.96 vs RGA: 1.29

Reinsurance Group of America Degree of Operating Leverage Historical Data

The historical data trend for Reinsurance Group of America's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Reinsurance Group of America Degree of Operating Leverage Chart

Reinsurance Group of America Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.29 9.68 18.01 3.58 -0.47

Reinsurance Group of America Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.36 0.72 -1.14 -0.47 1.29

Competitive Comparison of Reinsurance Group of America's Degree of Operating Leverage

For the Insurance - Reinsurance subindustry, Reinsurance Group of America's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reinsurance Group of America's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Reinsurance Group of America's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Reinsurance Group of America's Degree of Operating Leverage falls into.


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Reinsurance Group of America Degree of Operating Leverage Calculation

Reinsurance Group of America's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1393 (Mar. 2025) / 1353 (Mar. 2024) - 1 )/( 20940 (Mar. 2025) / 20471 (Mar. 2024) - 1 )
=0.0296/0.0229
=1.29***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Reinsurance Group of America  (NYSE:RGA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Reinsurance Group of America Degree of Operating Leverage Related Terms

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Reinsurance Group of America Business Description

Traded in Other Exchanges
Address
16600 Swingley Ridge Road, Chesterfield, MO, USA, 63017
Reinsurance Group of America Inc is an insurance holding company with operations in the United States, Latin America, Canada, Europe, Africa, Asia, and Australia. The core products and services include life reinsurance, living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, facultative underwriting, and product development. The company's operations are divided into traditional and financial solution businesses.
Executives
William L Hutton officer: EVP, General Counsel & Secy. C/O REINSURANCE GROUP OF AMERICA, 1370 TIMBERLAKE MANOR PKY, CHESTERFIELD MO 63017-6039
John W. Hayden officer: EVP, Controller 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Todd C Larson officer: SVP, Controller & Treasurer
Ronald Herrmann officer: EVP 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Bang Michele Mi Kyung director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Khanh T Tran director 16600 SWINGLEY RIDGE RD, CHESTERFIELD MO 63017
Shundrawn A Thomas director 16600 SWINGLEY RIDGE RD, CHESTERFIELD MO 63017
Stephen T O'hearn director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Keng Hooi Ng director 16600 SWINGLEY RIDGE RD, CHESTERFIELD MO 63017
Pina Albo director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Hazel Mcneilage director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Patricia Lynn Guinn director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
John J Gauthier director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
Stanley B Tulin director C/O ALLIANCE CAPITAL, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
George Iii Nichols director 601 W MARKET ST, LOUISVILLE KY 40202