Reinsurance Group of America, Incorporated RGA has been benefiting from an increase in new business volumes, favorable longevity experience, stronger invested asset base, business expansion in the pension risk transfer market and effective capital deployment.

Growth Projections

The Zacks Consensus Estimate for Reinsurance Group's 2025 earnings is pegged at $20.91 per share, indicating a 9% increase from the year-ago reported figure on 5.7% higher revenues of $20.09 billion.

Estimate Revision

The Zacks Consensus Estimate for 2023 and 2024 has moved 0.8% and 2% north, respectively, in the past 30 days, reflecting analysts' optimism on the stock.

Earnings Surprise History

The life insurer delivered a four-quarter average earnings surprise of 24.39%.

Zacks Rank & Price Performance

RGA currently carries a Zacks Rank #3 (Hold). The stock has gained 21.6% in the past year compared with the industry's growth of 13.2%.

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Style Score

RGA has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.

Return on Equity (ROE)

ROE is a profitability metric that measures how effectively the company is utilizing its shareholders' funds. In the fourth quarter of 2023, adjusted operating return on equity (excluding accumulated other comprehensive income) was 14.5%, which expanded 400 basis points year over year. This shows the company's relative efficiency in managing shareholders' funds.

Business Tailwinds

Reinsurance Group's compelling product portfolio and operational expertise help Reinsurance Group maintain its leadership position in the United States, Latin America and Canada.

Significant value embedded in the in-force business helps generate predictable long-term earnings. Product line expansion not only contributes to risk diversification and matured individual mortality but also provides a base for stable earnings and capital generation.

Reinsurance Group's longevity insurance provides a source of diversified income and acts as a hedge to a large mortality position. Increasing demand for longevity insurance poises it well for long-term growth.

Life insurers are direct beneficiaries of an improving interest rate environment. Though the Fed has stalled rate increases for some time, it has already made 11 hikes since 2022.

A high-quality investment portfolio and the company's diversified business across asset classes, sectors, issuers and geography are positives.

RGA's solid capital position with excess capital of around $1 billion offers sufficient financial flexibility and supports effective capital deployment.

Reinsurance Group expects to remain active in deploying capital into attractive growth opportunities in organic flow and in-force block transactions and returning excess capital to shareholders through dividends and share repurchases. On Jan 23, 2024, the company's board authorized a share repurchase program for up to $500 million of RGA's outstanding common stock.