Reinsurance Group of America, Incorporated 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 research snapshot
RZC AI stock analysis treats RZC as the Reinsurance Group of America, Incorporated 7.125% Fixed-Rate Reset Subordinated Debentures due 2052, not as RGA common stock. At the July 12, 2026 data cutoff, the latest verified close was $25.35 on July 10, 2026, the issue traded at about a 7.03% current yield, and the first rate reset is scheduled for October 15, 2027. The security is a subordinated income claim on RGA, so the analysis focuses on issuer credit, coupon, reset mechanics, and liquidity rather than earnings growth. This page is informational research and is not investment advice.
Current price
$25.35
Market cap
About $700 million par issue ($709.80 million indicated value at the $25.35 close)
AI score
66 / 100
Rating
Income-oriented 7.125% fixed-rate reset subordinated debenture with a strong reinsurer behind it and a 2027 rate-reset date to watch
Trend status
Price is below the 50-day and 200-day moving averages and is trading near the middle of the 52-week range
Data cutoff (updated weekly)
July 12, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | RZC is not an operating business. It is a subordinated debt claim on RGA, so its value depends on issuer credit, coupon cash flows, and the contract terms. | High |
| Moat | The instrument has no standalone moat. RGA's reinsurance scale, mortality data, underwriting expertise, and global relationships support the credit, but they do not guarantee the debenture price. | High |
| Management | RGA management and the board allocate capital, maintain financial strength ratings, and service debt. Debtholders have no equity voting control, so the relevant risk is management credit discipline. | Medium-high |
| Financial trend | RGA reported FY2025 revenue of $22.79 billion and net income of $1.18 billion, and Q1 2026 revenue of $6.47 billion and net income of $330 million. | High |
| Valuation | At $25.35, RZC yields about 7.03%, trades at a small premium to the $25 par, and faces reset risk in October 2027. RGA common stock trades near 12.5x TTM earnings and 1.12x book value. | Medium-high |
| Technical trend | RZC is below its 50-day moving average at about $25.47 and its 200-day moving average at about $25.53, and it sits inside a $25.01 to $26.29 52-week range. | Medium |
| Risk level | Key risks include RGA credit deterioration, higher 5-year Treasury rates at the 2027 reset, liquidity shortages, subordinated recovery, and reinsurance claims volatility. | Medium-high |
| AI confidence | High for descriptive facts and audited calculations. Medium for technical levels and forward scenarios because the reset mechanic depends on future rates and market liquidity. | High data confidence |
| Investment certainty | Medium for the income stream if RGA credit remains solid, but low for capital appreciation because the price is near par and the coupon is fixed only until the 2027 reset. | Medium |
RZC AI stock forecast
The RZC AI stock forecast is a fixed-income scenario framework, not a promised price or yield. The security pays 7.125% until October 15, 2027, then resets to the 5-year Treasury rate plus 3.456% every five years. The price is therefore tied to RGA credit, required yield, and the expected reset coupon.
$25.80 to $26.25
More likely if RGA credit remains strong, 5-year Treasury rates stay around current levels or fall, the reset rate is competitive with comparable preferred and subordinated debt, and demand for income supports the price.
$25.00 to $25.75
More likely if RGA credit remains stable, coupons continue, rates move moderately, and the security trades around the $25 par with a small premium.
$24.50 to $25.00
More likely if RGA credit weakens, 5-year Treasury rates rise sharply, the reset rate is less attractive, or liquidity pressure pushes the price toward a discount to par.
RZC AI technical analysis
RZC AI technical analysis is intentionally limited at the July 12, 2026 cutoff. RZC is a fixed-income instrument, so chart signals are secondary to issuer credit, yield, and the reset mechanics. The latest verified close was $25.35 on July 10, 2026, and the price was below both the 50-day and 200-day moving averages. Because this page does not fetch request-time market data, confirm current price, bid, ask, and volume before acting.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $25.35 on July 10, 2026 | Latest verified close used for this page as of the July 12, 2026 data cutoff. |
| 52-week range | $25.01 to $26.29 | FMP showed this year range at the July 10, 2026 close. The range is about $1.28, which is narrow for a long-dated debenture. |
| Near support | $25.00 to $25.20 | Support planning zone around the $25 par value and the $25.01 year low. |
| Secondary support | $24.74 to $25.01 | Some public sources showed a lower year low near $24.74, but FMP reported $25.01 as the 52-week low. A sustained break below the $25.01 FMP low would be a concern. |
| Near resistance | $25.47 to $25.55 | Resistance zone around the 50-day moving average and recent trading highs. |
| 50-day moving average | About $25.47 | FMP reported the 50-day moving average at $25.4729. The price is below it. |
| 200-day moving average | About $25.53 | FMP reported the 200-day moving average at $25.5333. The price is below it. |
| Momentum | Range-bound with a slight daily decline | RZC fell $0.02 or 0.08% on July 10, 2026. No independently verified RSI was available at the cutoff. |
| Volume | 11,346 shares | FMP reported 11,346 shares traded on July 10, 2026, below the 39,773 average. Volume is thin for a $700 million issue. |
| Volatility | Low | The 52-week range is narrow and the daily change was small. A fixed-income security normally moves less than a common stock. |
| Invalidation | Close below $25.01 or a credit downgrade | A sustained close below the FMP 52-week low, or any RGA financial strength or senior debt downgrade, would challenge the income thesis. |
RZC AI trading strategy
The RZC AI trading strategy is a fixed-income research framework, not personalized advice. It prioritizes current yield, issuer credit, the October 2027 reset, and liquidity over short-term chart patterns.
Compare the current quote, the $25 par value, and the $1.7812 annualized coupon. Check RGA financial strength ratings, earnings, capital, and the latest dividend declaration before considering an entry.
Do not assume the 7.125% coupon is guaranteed. Coupons can be deferred for up to five years under the debenture terms, and the market price can fall below par.
Monitor the 5-year Treasury rate because the coupon resets on October 15, 2027 to the 5-year Treasury rate plus 3.456%, and then every five years. Reassess expected income and duration risk when rates change materially.
A rising 5-year Treasury rate at the reset date could raise the coupon but may also reduce the price, while a falling rate could lower the coupon. The price also depends on the required spread.
Track RGA earnings, financial strength ratings, debt issuance, deployable capital, and any news that affects the holding company or reinsurance subsidiaries. Use limit orders because of thin volume.
Reassess the position if RGA credit deteriorates, senior or subordinated debt is downgraded, liquidity dries up, or the price diverges from the yield story without a clear explanation.
Investment research summary
RZC is a subordinated debenture of RGA, not an equity stake. It pays a fixed 7.125% coupon until October 15, 2027, then resets to a floating rate, and matures in 2052. Its value depends on RGA's ability to service the debt, not on earnings growth.
The debenture itself has no moat. RGA's moat in life and health reinsurance comes from proprietary mortality and morbidity data, underwriting expertise, global relationships, and the ability to execute large block transactions.
The income thesis can fail if RGA credit deteriorates, 5-year Treasury rates rise so much that the reset spread is unattractive, liquidity dries up, or the subordinated status means lower recovery in a stress event.
RGA is led by CEO Tony Cheng. The team has a record of disciplined underwriting, capital allocation, and shareholder returns, but several senior roles have changed recently. Management's credit discipline is the relevant risk for debtholders.
Life and health reinsurance is tied to aging populations, protection gaps, longevity risk, and demand for capital optimization. It is a durable but regulated, capital-intensive, and claims-sensitive industry.
Margin of safety for RZC comes from the current yield, RGA credit strength, and the reset spread. The small premium to par and the 2027 reset date mean the price is not a deep bargain.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Security type and terms | 7.125% fixed-rate reset subordinated debentures due 2052; $25 par per debenture; $700 million aggregate principal amount; fixed until October 15, 2027; then 5-year Treasury rate plus 3.456% reset every five years | SEC 424B2 filing for RZC | July 12, 2026 |
| RZC price and volume | $25.35 close on July 10, 2026; day range $25.34 to $25.47; year range $25.01 to $26.29; volume 11,346; average volume 39,773 | Financial Modeling Prep quote API | July 12, 2026 |
| RZC current yield | 7.03% from $1.7812 annual coupon divided by $25.35 price, calculated with financial_rigor.py | Financial Modeling Prep and local financial_rigor.py | July 12, 2026 |
| RZC credit rating | AM Best assigned a bbb+ long-term issue credit rating to the subordinated debentures with a stable outlook, as of February 12, 2026 | AM Best rating disclosure report | July 12, 2026 |
| RGA market cap verification | $15.14 billion from $231.16 times 65.51 million shares, verified with financial_rigor.py | Financial Modeling Prep RGA quote and local financial_rigor.py | July 12, 2026 |
| RGA FY2025 financials | Revenue $22.79 billion, net income $1.18 billion, EPS diluted $17.69, total equity $13.55 billion, free cash flow $4.09 billion | RGA 2025 10-K and FMP financial statements | July 12, 2026 |
| RGA valuation math | P/E 12.56x, P/B 1.12x, dividend yield 1.61% from financial_rigor.py; based on $231.16 price, $18.40 EPS, $205.63 book value per share, $3.72 annual dividend | Financial Modeling Prep and local financial_rigor.py | July 12, 2026 |
| RGA Q1 2026 results | Revenue $6.47 billion, net income $330 million, adjusted operating EPS $6.97 | RGA Q1 2026 earnings release | July 12, 2026 |
| RGA management and capital | CEO Tony Cheng; estimated deployable capital about $2.9 billion at end of Q1 2026; $50 million share repurchases in Q1 2026 | RGA Q1 2026 earnings release and earnings call | July 12, 2026 |
| 5-year Treasury rate | 4.27% on July 9, 2026 | FRED DGS5 | July 12, 2026 |
| Reset rate illustration | If the 5-year Treasury rate were 4.27% at the first reset date, the reset coupon would be about 7.73% (4.27% plus 3.456%) | SEC 424B2 and FRED DGS5 | July 12, 2026 |
| RGA financial strength and senior debt ratings | Financial strength ratings of A+ (AM Best) and A1 (Moody's); senior debt ratings of A (S&P), a- (AM Best), and Baa1 (Moody's) | RGA 2025 10-K and AM Best rating report | July 12, 2026 |
This RZC AI stock analysis is an informational tool for research and education only. It is not investment advice, a recommendation, or a guarantee of future performance. Forecast ranges are scenarios based on available data as of July 12, 2026 and can be wrong. RZC is a subordinated debenture and is not common equity. Verify the current prospectus, credit ratings, quote, and bid-ask spread before acting.
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