RGA shares have dropped 15% due to mixed quarterly results and concerns about the profitability of its aggressive growth strategy. The company has shifted focus to pension risk transfer deals, halting buybacks but maintaining dividends, betting on better returns from business investments. Despite short-term profitability drags, RGA targets a 13-15% ROE, supported by strong APAC results and a significant deal with Equitable.
Reinsurance Group is poised to gain from new business volumes, favorable longevity experience, a diversified business, effective capital deployment and higher return on capital.
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Reinsurance Group of America Inc. has rebounded strongly post-pandemic, tripling its earnings. Despite a low P/E ratio of 8.5X, RGA is not as cheap as it appears. RGA's baby bonds though, met our buy criteria and we bought some.
Reinsurance Group of America, Incorporated (NYSE:RGA ) Q4 2024 Earnings Conference Call February 7, 2025 10:00 AM ET Company Participants Jeff Hopson - Senior Vice President of Investor Relations Tony Cheng - President and Chief Executive Officer Axel Andre - Executive Vice President and Chief Financial Officer Leslie Barbi - Executive Vice President and Chief Investment Officer Jonathan Porter - Executive Vice President and Global Chief Risk Officer Conference Call Participants Wilma Burdis - Raymond James Ryan Krueger - KBW John Barnidge - Piper Sandler Wes Carmichael - Autonomous Research Elyse Greenspan - Wells Fargo Jimmy Bhullar - JPMorgan Thomas Gallagher - Evercore ISI Alex Scott - Barclays Suneet Kamath - Jefferies Operator Hello, and welcome to the Reinsurance Group of America's Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode.
RGA's fourth-quarter results reflect solid performance in the US and Latin America, and Canada segments, offset by a soft performance in Asia/Pacific and Europe, Middle East and Africa.
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Although the revenue and EPS for Reinsurance Group (RGA) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Reinsurance Group (RGA) came out with quarterly earnings of $4.99 per share, missing the Zacks Consensus Estimate of $5.24 per share. This compares to earnings of $4.73 per share a year ago.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Besides Wall Street's top -and-bottom-line estimates for Reinsurance Group (RGA), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.