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Why You Should Hold onto Reinsurance Group (RGA) Stock
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Reinsurance Group of America, Incorporated (RGA - Free Report) saw its shares gain 54.23% over the last one year, significantly outperforming the Life Insurance industry’s growth of 21.09%. We expect the company to retain its momentum owing to a number of positives.
The life insurer primarily deals in reinsurance business and is engaged in life reinsurance and international life and disability insurance. The company is a leader in the U.S. and Latin American traditional markets and has been successful in expanding its product line with top-notch services, capabilities, and innovation. Product line expansion, in turn, would facilitate risk diversification going ahead. The life insurer is likely to continue benefiting from a mix of organic and transactional opportunities. In addition, the company’s experienced management team continues to work effectively in terms of block transactions. This should help the insurer generate 4% to 6% growth in this region in the future.
This apart, Reinsurance Group has carved out a niche in the Canadian market on the back of solid growth and profitability. The company anticipates longevity insurance – a source of diversified income – to experience steady demand and long-term growth in the Canadian market.
Despite a challenging overall operating environment, the company has been witnessing sustained premium growth. This reflects the resilience of the company’s operating model and its ability to capitalize on opportunities and gain strong market positions.
Reinsurance Group's top-line growth continues to impress in spite of stiff competition. This positions the life insurer well to take advantage of the opportunities that exist in the market. Moreover, the company has been displaying effective capital management through share buybacks and dividend payments.
Reinsurance Group is set to report fourth-quarter results on Jan 30. However, our proven model does not conclusively show that it is likely to beat on earnings this time around. This is because the company has a favorable Zacks Rank #3 (Hold) but an Earnings ESP of -3.20%, which makes surprise prediction difficult. We note that the company delivered positive surprise in three of the last four quarters with an average beat of 8.61%. However, the company has witnessed its full-year 2016 estimates moving south in the last two months.
Stocks to Consider
Some better-ranked stocks from the same space are Health Insurance Innovations, Inc. , Fidelity & Guaranty Life and Genworth Financial, Inc. (GNW - Free Report) .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fidelity & Guaranty Life offers annuities and life insurance products in the U.S. The company delivered positive surprises in one of the last four quarters with an average beat of 7.55%. The company flaunts a Zacks Rank #1.
Genworth Financial offers insurance and homeownership solutions in the U.S. and internationally. The company delivered positive surprises in two of the last four quarters but with an average miss of 149.40%. The company holds a Zacks Rank #2.
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Why You Should Hold onto Reinsurance Group (RGA) Stock
Reinsurance Group of America, Incorporated (RGA - Free Report) saw its shares gain 54.23% over the last one year, significantly outperforming the Life Insurance industry’s growth of 21.09%. We expect the company to retain its momentum owing to a number of positives.
The life insurer primarily deals in reinsurance business and is engaged in life reinsurance and international life and disability insurance. The company is a leader in the U.S. and Latin American traditional markets and has been successful in expanding its product line with top-notch services, capabilities, and innovation. Product line expansion, in turn, would facilitate risk diversification going ahead. The life insurer is likely to continue benefiting from a mix of organic and transactional opportunities. In addition, the company’s experienced management team continues to work effectively in terms of block transactions. This should help the insurer generate 4% to 6% growth in this region in the future.
This apart, Reinsurance Group has carved out a niche in the Canadian market on the back of solid growth and profitability. The company anticipates longevity insurance – a source of diversified income – to experience steady demand and long-term growth in the Canadian market.
Despite a challenging overall operating environment, the company has been witnessing sustained premium growth. This reflects the resilience of the company’s operating model and its ability to capitalize on opportunities and gain strong market positions.
Reinsurance Group's top-line growth continues to impress in spite of stiff competition. This positions the life insurer well to take advantage of the opportunities that exist in the market. Moreover, the company has been displaying effective capital management through share buybacks and dividend payments.
Reinsurance Group is set to report fourth-quarter results on Jan 30. However, our proven model does not conclusively show that it is likely to beat on earnings this time around. This is because the company has a favorable Zacks Rank #3 (Hold) but an Earnings ESP of -3.20%, which makes surprise prediction difficult. We note that the company delivered positive surprise in three of the last four quarters with an average beat of 8.61%. However, the company has witnessed its full-year 2016 estimates moving south in the last two months.
Stocks to Consider
Some better-ranked stocks from the same space are Health Insurance Innovations, Inc. , Fidelity & Guaranty Life and Genworth Financial, Inc. (GNW - Free Report) .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fidelity & Guaranty Life offers annuities and life insurance products in the U.S. The company delivered positive surprises in one of the last four quarters with an average beat of 7.55%. The company flaunts a Zacks Rank #1.
Genworth Financial offers insurance and homeownership solutions in the U.S. and internationally. The company delivered positive surprises in two of the last four quarters but with an average miss of 149.40%. The company holds a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>