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What's in Store for Reinsurance Group (RGA) in Q4 Earnings?

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Reinsurance Group of America Inc. (RGA - Free Report) is slated to report fourth-quarter 2022 earnings on Feb 2, after the closing bell. RGA delivered an earnings surprise in three of the last four quarters while missing in one, the average being 49.74%.

Factors to Note

Reinsurance Group’s fourth-quarter 2022 results are likely to benefit from a compelling portfolio with market leading services, capabilities, expertise and innovation in the United States and Latin American traditional market. Significant value embedded in the in-force business added to the upside.

Premiums are likely to have benefited from organic growth and new sales. Net investment income is likely to have been favored by high-quality investment portfolio diversified across asset classes, sectors, issuers and geography. Also, an improving interest rate environment favoring higher investment yields is likely to have contributed to the upside.

Expenses are likely to have increased due to higher claims and other policy benefits, interest credited, operating costs and interest expense.

Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.

The Zacks Consensus Estimate for earnings is pegged at $3.51 per share, reversing the year-ago loss of 56 cents.

What Our Quantitative Model Unveils

Our proven model does not conclusively predict an earnings beat for Reinsurance Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Earnings ESP: Reinsurance Group has an Earnings ESP of -5.01%. This is because the Most Accurate Estimate of $3.34 per share is pegged lower than the Zacks Consensus Estimate of $3.51. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: RGA currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

Manulife Financial (MFC - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at 61 cents per share, down 9% from the year-ago reported figure.

MFC’s earnings beat estimates in two of the last four reported quarters, while missed in two.

Sun Life Financial (SLF - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth -quarter 2022 earnings is pegged at a $1.16 per share, down 4.1% from the year-ago reported figure.

SLF’s earnings beat estimates in three of the last four reported quarters while missing in one.

Voya Financial (VOYA - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth -quarter 2022 earnings is pegged at $1.54 per share, indicating a decrease of 19% from the year-ago reported figure.

VOYA’s earnings beat estimates in the last four reported quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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