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Why You Should Stay Invested in Reinsurance Group (RGA) Stock
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Reinsurance Group of America, Incorporated (RGA - Free Report) is well-poised for growth, driven by continued growth of Financial Solutions Reinsurance, higher variable investment income, favorable longevity experience and financial flexibility.
Growth Projections
The Zacks Consensus Estimate for Reinsurance Group’s 2022 and 2023 earnings per share is pegged at $12.04 and $15.69, indicating a year-over-year increase of 965.5% and 30.3%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 23.9% and 4% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Zacks Rank & Price Performance
Reinsurance Group currently carries a Zacks Rank #3 (Hold). The stock has gained 8.8% in the past year against the industry’s decrease of 15.3%.
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. The insurer exited the second quarter of 2022 with excess capital of around $1 billion. As of Jun 30, 2022, the insurer maintained an $850 million syndicated revolving credit facility coupled with the committed letter of credit facilities aggregating $928 million.
Backed by its solid financial strength, Reinsurance Group undertakes shareholder-friendly moves. RGA increased its dividend at an eight-year (2015-2022) CAGR of 11.7%. It currently yields 2.5%. In the second quarter of 2022, the insurer deployed $121 million into in-force and other transactions and $49 million to shareholders through dividends.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 12.5%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 5.1%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 3.1% and 3.3% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 14.2%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 30 days.
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Why You Should Stay Invested in Reinsurance Group (RGA) Stock
Reinsurance Group of America, Incorporated (RGA - Free Report) is well-poised for growth, driven by continued growth of Financial Solutions Reinsurance, higher variable investment income, favorable longevity experience and financial flexibility.
Growth Projections
The Zacks Consensus Estimate for Reinsurance Group’s 2022 and 2023 earnings per share is pegged at $12.04 and $15.69, indicating a year-over-year increase of 965.5% and 30.3%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 23.9% and 4% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Zacks Rank & Price Performance
Reinsurance Group currently carries a Zacks Rank #3 (Hold). The stock has gained 8.8% in the past year against the industry’s decrease of 15.3%.
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. The insurer exited the second quarter of 2022 with excess capital of around $1 billion. As of Jun 30, 2022, the insurer maintained an $850 million syndicated revolving credit facility coupled with the committed letter of credit facilities aggregating $928 million.
Backed by its solid financial strength, Reinsurance Group undertakes shareholder-friendly moves. RGA increased its dividend at an eight-year (2015-2022) CAGR of 11.7%. It currently yields 2.5%. In the second quarter of 2022, the insurer deployed $121 million into in-force and other transactions and $49 million to shareholders through dividends.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 12.5%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 5.1%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 3.1% and 3.3% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 14.2%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 30 days.