Reinsurance Group of America (NYSE:RGA) Releases Earnings Results, Beats Estimates By $2.39 EPS

Reinsurance Group of America (NYSE:RGA) posted its earnings results on Thursday. The insurance provider reported $8.89 EPS for the quarter, beating analysts’ consensus estimates of $6.50 by $2.39, FiscalAI reports. Reinsurance Group of America had a return on equity of 14.90% and a net margin of 5.81%.The firm had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.67 billion. During the same period in the prior year, the company earned $4.72 EPS. The company’s quarterly revenue was up 18.5% compared to the same quarter last year.

Reinsurance Group of America Stock Up 4.2%

NYSE RGA opened at $246.13 on Friday. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.46. The company has a fifty day moving average of $222.38 and a two-hundred day moving average of $213.52. The firm has a market capitalization of $16.12 billion, a price-to-earnings ratio of 10.81 and a beta of 0.47. Reinsurance Group of America has a 52 week low of $178.21 and a 52 week high of $248.13.

Reinsurance Group of America Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a $0.98 dividend. This is a boost from Reinsurance Group of America’s previous quarterly dividend of $0.93. This represents a $3.92 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Tuesday, August 18th. Reinsurance Group of America’s dividend payout ratio is 20.15%.

Key Headlines Impacting Reinsurance Group of America

Here are the key news stories impacting Reinsurance Group of America this week:

• Positive Sentiment: Significant earnings beat: RGA reported second-quarter earnings of $8.89 per share, well above the roughly $6.50 analyst consensus and up from $4.72 a year earlier. The result was supported by stronger premiums, investment income and growth in the Financial Solutions business. RGA Q2 Earnings Beat Estimates on Higher Premiums, Investment Income
• Positive Sentiment: Strong operating growth: Quarterly revenue reached $6.64 billion, an 18.5% year-over-year increase. Although revenue was modestly below the $6.67 billion consensus, the substantial profit improvement and record quarterly result appear to have outweighed that small shortfall. Reinsurance Group Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Dividend raised: The company increased its quarterly dividend by 5.4% to $0.98 per share, reinforcing the income appeal of the stock and signaling management’s confidence in cash-generation capacity. Reinsurance Group of America Raises Dividend by 5.4%
• Neutral Sentiment: Broader market support: RGA’s advance also occurred as the S&P 500 and other large-cap stocks gained, suggesting that general market sentiment contributed to the move alongside company-specific earnings news. Why Did RGA Climb as S&P 500 Firms Rose?
• Negative Sentiment: Expense pressure remains: Higher expenses partly offset the benefit of stronger premiums and investment income, while the slight revenue miss gives investors a reason to monitor margins and the sustainability of recent earnings gains.

Insiders Place Their Bets

In other news, EVP John W. Hayden sold 414 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $214.95, for a total value of $88,989.30. Following the sale, the executive vice president owned 20,949 shares of the company’s stock, valued at approximately $4,502,987.55. This represents a 1.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Ronald Herrmann sold 7,000 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $210.58, for a total transaction of $1,474,060.00. Following the completion of the sale, the executive vice president owned 3,938 shares of the company’s stock, valued at $829,264.04. This trade represents a 64.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.60% of the company’s stock.

Institutional Trading of Reinsurance Group of America

Several institutional investors have recently added to or reduced their stakes in the company. Principal Securities Inc. boosted its stake in Reinsurance Group of America by 3.6% in the fourth quarter. Principal Securities Inc. now owns 1,490 shares of the insurance provider’s stock valued at $303,000 after acquiring an additional 52 shares in the last quarter. Rehmann Capital Advisory Group grew its holdings in shares of Reinsurance Group of America by 1.3% during the third quarter. Rehmann Capital Advisory Group now owns 4,281 shares of the insurance provider’s stock worth $819,000 after purchasing an additional 54 shares during the last quarter. CIBC Private Wealth Group LLC increased its position in shares of Reinsurance Group of America by 6.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 974 shares of the insurance provider’s stock worth $198,000 after purchasing an additional 56 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Reinsurance Group of America by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 388 shares of the insurance provider’s stock valued at $76,000 after purchasing an additional 58 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Reinsurance Group of America by 12.4% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 579 shares of the insurance provider’s stock valued at $111,000 after purchasing an additional 64 shares during the last quarter. Institutional investors own 95.11% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RGA. Barclays boosted their price target on shares of Reinsurance Group of America from $278.00 to $290.00 and gave the stock an “overweight” rating in a research report on Friday. UBS Group raised shares of Reinsurance Group of America from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 24th. Weiss Ratings restated a “buy (b)” rating on shares of Reinsurance Group of America in a report on Wednesday, May 13th. Wells Fargo & Company upped their target price on shares of Reinsurance Group of America from $261.00 to $269.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Finally, Wall Street Zen raised shares of Reinsurance Group of America from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $256.33.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.