Back to top

Analyst Blog

On Dec 17, Zacks Investment Research upgraded Reinsurance Group of America Inc. (RGA - Analyst Report) to a Zacks Rank #2 (Buy).

Why the Upgrade?

Reinsurance Group witnessed rising earnings estimates on the back of solid third quarter 2013 results. This life insurer delivered positive earnings surprise in the 3 of last 4 quarters. The expected long–term growth rate for the stocks comes at 6.9%.

Reinsurance Group’s third quarter operating income of $2.14 per share exceeded the Zacks Consensus Estimate by 17.6% and year-ago earnings by 58.5%. Higher revenues along with lower share count aided the earnings' outperformance.

Total revenue of Reinsurance Group increased 6.4% year over year to $2.47 billion in the third quarter and was also above the Zacks Consensus Estimate of $2.45 billion

Book value per share of Reinsurance Group increased 9.6% year over year to $67.98 as on Sep 30, 2013.

The Zacks Consensus Estimate for 2013 was up by a good 8.3% to $4.74 per share, as more than 85% of the estimates were raised over the last 60 days.

Reinsurance Group holds a significant position in the U.S. and Canada. The company is also focusing on its underwriting standards, prompt response on quotes, competitive pricing as well as capacity and flexibility to meet customer needs, in an attempt to preserve its position.

Additionally, the company is growing its international operations to reap the benefits of diversification.

Also a disciplined capital management strategy will continue to boost bottom-line earnings.

Other stocks to Consider

Other players in the life insurance industry, which look attractive at current levels, include StanCorp Financial Group, Inc. (SFG - Analyst Report),  American Equity Investment Life Holding Co. (AEL - Snapshot Report) and Manulife Financial Corporation (MFC - Analyst Report). While StanCorp Financial sports a Zacks Rank #1 (Strong Buy), American Equity and Manulife Financial carry Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.64 +8.78%
CENTURY ALU… CENX 27.11 +8.53%
BANCO DO BR… BDORY 16.55 +6.57%
CANADIAN SO… CSIQ 37.48 +5.76%
GTT COMMUNI… GTT 12.86 +5.07%