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Reasons Why You Should Hold Reinsurance Group (RGA) Stock
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Reinsurance Group of America, Incorporated (RGA - Free Report) has been witnessing higher investment income, higher transaction and other fees, higher volumes of closed longevity block business and a solid cash position.
Growth Projections
The Zacks Consensus Estimate for Reinsurance Group’s 2022 and 2023 earnings per share is pegged at $8.82 and $14.77, indicating a year-over-year increase of 680.5% and 67.3%, respectively.
Zacks Rank & Price Performance
Reinsurance Group currently carries a Zacks Rank #3 (Hold). The stock has gained 5% in the past year against the industry’s decrease of 2.6%.
Image Source: Zacks Investment Research
Business Tailwinds
Banking on favorable claims experience, continued growth of Financial Solutions Reinsurance, higher investment income and investment-related gains, the Asia Pacific business is likely to benefit. Contributions from the recently executed asset-intensive transactions in Asia should benefit the top line of the Asia Pacific business.
The EMEA segment business stands to gain from higher business volume on new and existing treaties, increased volumes of closed longevity block business and higher investment income on fixed-income securities and lifetime mortgages.
Riding on higher business volume under existing treaties, increased variable investment income and a higher invested asset base, the Canada business is expected to flourish.
The U.S. Asset-Intensive business should continue to gain from higher transaction and other fees, favorable longevity experience and equity markets as well as higher variable investment income from commercial loan prepayments.
Reinsurance Group boasts a solid capital position and sufficient financial flexibility. It continues to hold a high level of liquidity with access to an $850 million syndicated credit facility and other sources and has an excess capital position of $1.3 billion.
Courtesy of solid financial strength, Reinsurance Group undertakes shareholder-friendly moves. RGA increased its dividend at an eight-year (2015-2022) CAGR of 10.4%. It currently yields 2.5%. The insurer also repurchased shares for $96 million in 2021, in addition to capital deployment to support organic new business and in-force block transactions.
Stocks to Consider
Some better-ranked stocks from the insurance sector are Fidelity National Financial, Inc. (FNF - Free Report) , First American Financial Corporation (FAF - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . While Fidelity National sports a Zacks Rank #1 (Strong Buy), First American Financial and Kinsale carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Fidelity National surpassed earnings estimates in each of the last four quarters, the average being 31.73%. Year to date, the insurer has declined 16.6%.
The Zacks Consensus Estimate for Fidelity National’s 2022 earnings has moved 3.3% north in the past 30 days.
First American has a solid track record of beating earnings estimates in five of the last six quarters. The stock has lost 24.9% year to date.
The Zacks Consensus Estimate for FAF’s 2022 and 2023 earnings has moved 2.9% and 0.7% north, respectively in the past 60 days.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. Year to date, Kinsale Capital has lost 4.9%.
The Zacks Consensus Estimate for Kinsale Capital’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.
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Reasons Why You Should Hold Reinsurance Group (RGA) Stock
Reinsurance Group of America, Incorporated (RGA - Free Report) has been witnessing higher investment income, higher transaction and other fees, higher volumes of closed longevity block business and a solid cash position.
Growth Projections
The Zacks Consensus Estimate for Reinsurance Group’s 2022 and 2023 earnings per share is pegged at $8.82 and $14.77, indicating a year-over-year increase of 680.5% and 67.3%, respectively.
Zacks Rank & Price Performance
Reinsurance Group currently carries a Zacks Rank #3 (Hold). The stock has gained 5% in the past year against the industry’s decrease of 2.6%.
Image Source: Zacks Investment Research
Business Tailwinds
Banking on favorable claims experience, continued growth of Financial Solutions Reinsurance, higher investment income and investment-related gains, the Asia Pacific business is likely to benefit. Contributions from the recently executed asset-intensive transactions in Asia should benefit the top line of the Asia Pacific business.
The EMEA segment business stands to gain from higher business volume on new and existing treaties, increased volumes of closed longevity block business and higher investment income on fixed-income securities and lifetime mortgages.
Riding on higher business volume under existing treaties, increased variable investment income and a higher invested asset base, the Canada business is expected to flourish.
The U.S. Asset-Intensive business should continue to gain from higher transaction and other fees, favorable longevity experience and equity markets as well as higher variable investment income from commercial loan prepayments.
Reinsurance Group boasts a solid capital position and sufficient financial flexibility. It continues to hold a high level of liquidity with access to an $850 million syndicated credit facility and other sources and has an excess capital position of $1.3 billion.
Courtesy of solid financial strength, Reinsurance Group undertakes shareholder-friendly moves. RGA increased its dividend at an eight-year (2015-2022) CAGR of 10.4%. It currently yields 2.5%. The insurer also repurchased shares for $96 million in 2021, in addition to capital deployment to support organic new business and in-force block transactions.
Stocks to Consider
Some better-ranked stocks from the insurance sector are Fidelity National Financial, Inc. (FNF - Free Report) , First American Financial Corporation (FAF - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . While Fidelity National sports a Zacks Rank #1 (Strong Buy), First American Financial and Kinsale carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Fidelity National surpassed earnings estimates in each of the last four quarters, the average being 31.73%. Year to date, the insurer has declined 16.6%.
The Zacks Consensus Estimate for Fidelity National’s 2022 earnings has moved 3.3% north in the past 30 days.
First American has a solid track record of beating earnings estimates in five of the last six quarters. The stock has lost 24.9% year to date.
The Zacks Consensus Estimate for FAF’s 2022 and 2023 earnings has moved 2.9% and 0.7% north, respectively in the past 60 days.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. Year to date, Kinsale Capital has lost 4.9%.
The Zacks Consensus Estimate for Kinsale Capital’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.