On Aug 23, 2016, shares of Reinsurance Group of America Inc. (RGA - Free Report) hit a 52-week high of $103.60, driven by strong second-quarter 2016 results. About 0.2 million shares exchanged hands in the last trading session and the stock finally closed at $103.30, up 1.08%. Year to date, the stock has returned 20.75%, which is better than 6.99% returned by the S&P 500.
Reinsurance Group’s operating income of $2.80 per share outperformed the Zacks Consensus Estimate by 22.7%. The bottom line also improved 44% from the prior-year quarter. Better results in the Canada segment owing to favorable mortality, consistent momentum in the U.S. Asset-Intensive business and robust performance in the Asia Pacific drove the upside. This Zacks Rank #3 (Hold) life insurer delivered positive surprises in two of the last four quarters, with an average beat of 3.6%.
Total revenue of the company improved, primarily due to higher premiums. Further, rise in the life insurer’s net premium came on the back of organic growth and in-force transactions.
Reinsurance Group continues to benefit from a mix of organic and transactional opportunities. In addition, the company is poised to benefit from an improving life reinsurance pricing environment.
The company has been displaying a well-balanced execution of its capital management strategy through share buybacks and some small in-force transactions. In keeping with this, the company bought back 11 million shares in the second quarter and currently has $280 million remaining under its share repurchase authorization. With excess capital of around $1 billion, the company has been able to maintain its financial flexibility, which will allow it to continue healthy capital management, thereby boosting profitability.
Notably, the life insurer increased quarterly dividend by 11% to 41 cents in the reported quarter.
Based on the robust second-quarter earnings performance, the Zacks Consensus Estimate also moved north as most of the estimates were revised higher over the last 30 days. The same increased 5.8% to $9.45 for 2016 and inched up 0.2% to $9.82 for 2017.
Stocks to Consider
Some better-ranked stocks from the same space include Health Insurance Innovations, Inc. , Genworth Financial, Inc. (GNW - Free Report) and Primerica, Inc. (PRI - Free Report) . While Health Insurance Innovations sports a Zacks Rank #1 (Strong Buy), both Genworth Financial and Primerica hold a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Aug 23, 2016, shares of Reinsurance Group of America Inc. (RGA - Free Report) hit a 52-week high of $103.60, driven by strong second-quarter 2016 results. About 0.2 million shares exchanged hands in the last trading session and the stock finally closed at $103.30, up 1.08%. Year to date, the stock has returned 20.75%, which is better than 6.99% returned by the S&P 500.
Reinsurance Group’s operating income of $2.80 per share outperformed the Zacks Consensus Estimate by 22.7%. The bottom line also improved 44% from the prior-year quarter. Better results in the Canada segment owing to favorable mortality, consistent momentum in the U.S. Asset-Intensive business and robust performance in the Asia Pacific drove the upside. This Zacks Rank #3 (Hold) life insurer delivered positive surprises in two of the last four quarters, with an average beat of 3.6%.
Total revenue of the company improved, primarily due to higher premiums. Further, rise in the life insurer’s net premium came on the back of organic growth and in-force transactions.
Reinsurance Group continues to benefit from a mix of organic and transactional opportunities. In addition, the company is poised to benefit from an improving life reinsurance pricing environment.
The company has been displaying a well-balanced execution of its capital management strategy through share buybacks and some small in-force transactions. In keeping with this, the company bought back 11 million shares in the second quarter and currently has $280 million remaining under its share repurchase authorization. With excess capital of around $1 billion, the company has been able to maintain its financial flexibility, which will allow it to continue healthy capital management, thereby boosting profitability.
Notably, the life insurer increased quarterly dividend by 11% to 41 cents in the reported quarter.
Based on the robust second-quarter earnings performance, the Zacks Consensus Estimate also moved north as most of the estimates were revised higher over the last 30 days. The same increased 5.8% to $9.45 for 2016 and inched up 0.2% to $9.82 for 2017.
Stocks to Consider
Some better-ranked stocks from the same space include Health Insurance Innovations, Inc. , Genworth Financial, Inc. (GNW - Free Report) and Primerica, Inc. (PRI - Free Report) . While Health Insurance Innovations sports a Zacks Rank #1 (Strong Buy), both Genworth Financial and Primerica hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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