Form 4: RGA EVP Ronald Herrmann Exercises SARs, Adjusts Holdings

Reinsurance Group of America EVP Ronald Herrmann reported the exercise of Stock Appreciation Rights and subsequent common stock transactions, including shares withheld for taxes and exercise price.

Summary

• Ronald Herrmann, EVP of Reinsurance Group of America Inc. (RGA), reported transactions involving common stock and Stock Appreciation Rights (SARs).
• On February 11, 2026, 4,641 Stock Appreciation Rights (SARs) with an exercise price of $106.53 were exercised.
• From the gross shares resulting from the SAR exercise, 2,240 shares were withheld to cover the exercise price.
• An additional 715 shares of common stock were disposed of at $220.7 per share to satisfy tax withholding obligations.
• These transactions resulted in a net settlement of 1,686 shares of common stock being added to Herrmann's direct beneficial ownership.
• Following these transactions, Herrmann directly owns 7,219 shares of RGA common stock.
• The SARs were granted in 2022 and vest in 25% increments over four years, starting December 31 of the grant year, with an expiration date of March 22, 2032.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a routine insider transaction reflecting the exercise of long-term equity incentives, indicating the executive is realizing value from previously granted compensation. The net acquisition of shares, despite withholdings, is a minor positive.

Positives

• The exercise of 4,641 Stock Appreciation Rights indicates a realization of value from previously granted equity incentives.
• The executive received a net settlement of 1,686 shares of common stock, increasing their direct beneficial ownership.
• The significant difference between the SAR exercise price ($106.53) and the disposition price of the common stock ($220.7) for tax withholding indicates a substantial gain on the exercised SARs.

Negatives

• A total of 2,955 shares (2,240 for exercise price and 715 for tax) were withheld or disposed of from the gross shares acquired, reducing the net shares received by the executive.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider transactions, such as the exercise of Stock Appreciation Rights, are common forms of equity compensation in the financial services and insurance sectors, including reinsurance. These transactions reflect the realization of long-term incentives by executives.

Comparison to Industry Standards

• The exercise of SARs and subsequent share withholdings for taxes and exercise price are standard practices for executive compensation in publicly traded companies, aligning with typical industry mechanisms for incentive plan realization.
• The significant difference between the SAR exercise price ($106.53) and the disposition price for tax withholding ($220.7) indicates a substantial increase in RGA's stock value since the SAR grant, which is a positive indicator for long-term equity performance compared to peers in the reinsurance industry like Munich Re or Swiss Re.

Related Party Transactions

• Exercise of Stock Appreciation Rights by EVP Ronald Herrmann, a company insider.
• Acquisition and disposition of common stock by an executive.

Stakeholder Impact

• Shareholders: The transaction represents a routine compensation event for an executive, which is generally expected. The net increase in direct ownership by the EVP could be seen as a minor positive signal of continued alignment with shareholder interests.
• Management: The transaction reflects the realization of long-term incentive compensation for a key executive.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction where an executive exercised Stock Appreciation Rights and adjusted their common stock holdings, primarily for tax and exercise price obligations. While it indicates the executive is realizing value from prior compensation, it does not provide new fundamental information about the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. Therefore, a "hold" recommendation is appropriate as the filing itself does not present a compelling reason to buy or sell based on new information.

Keywords

RGA, Reinsurance Group of America, Ronald Herrmann, EVP, Form 4, Insider Trading, Stock Appreciation Rights, SARs, Equity Compensation, Beneficial Ownership