NYSE:RGA

Stock Analysis Report

Reinsurance Group of America

Executive Summary

Reinsurance Group of America, Incorporated engages in reinsurance business.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Reinsurance Group of America's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RGA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.9%

RGA

1.2%

US Insurance

2.4%

US Market


1 Year Return

-32.5%

RGA

-20.0%

US Insurance

-10.0%

US Market

Return vs Industry: RGA underperformed the US Insurance industry which returned -23.5% over the past year.

Return vs Market: RGA underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

RGAIndustryMarket
7 Day21.9%1.2%2.4%
30 Day-0.8%-18.7%-11.0%
90 Day-37.5%-28.8%-19.4%
1 Year-31.3%-32.5%-18.0%-20.0%-8.1%-10.0%
3 Year-17.0%-20.8%-6.2%-13.6%17.3%9.6%
5 Year13.7%5.2%17.2%2.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is Reinsurance Group of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reinsurance Group of America undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGA ($89.23) is trading below our estimate of fair value ($244.76)

Significantly Below Fair Value: RGA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RGA is good value based on its PE Ratio (6.4x) compared to the Insurance industry average (8.1x).

PE vs Market: RGA is good value based on its PE Ratio (6.4x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: RGA is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: RGA is good value based on its PB Ratio (0.5x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Reinsurance Group of America forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGA's forecast earnings growth (2.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RGA's earnings (2.9% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: RGA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RGA's revenue (4.1% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: RGA's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RGA's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Reinsurance Group of America performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGA has high quality earnings.

Growing Profit Margin: RGA's current net profit margins (6.1%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: RGA's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: RGA's earnings growth over the past year (21.5%) exceeds its 5-year average (14% per year).

Earnings vs Industry: RGA earnings growth over the past year (21.5%) underperformed the Insurance industry 43.7%.


Return on Equity

High ROE: RGA's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Reinsurance Group of America's financial position?


Financial Position Analysis

Short Term Liabilities: RGA's short term assets ($6.0B) do not cover its short term liabilities ($7.3B).

Long Term Liabilities: RGA's short term assets ($6.0B) do not cover its long term liabilities ($57.9B).


Debt to Equity History and Analysis

Debt Level: RGA's debt to equity ratio (30.9%) is considered satisfactory.

Reducing Debt: RGA's debt to equity ratio has reduced from 44% to 30.9% over the past 5 years.

Debt Coverage: RGA's debt is well covered by operating cash flow (64.5%).

Interest Coverage: RGA's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Reinsurance Group of America's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGA's dividend (3.14%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: RGA's dividend (3.14%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: RGA's dividends per share have been stable in the past 10 years.

Growing Dividend: RGA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), RGA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RGA's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Anna Manning (60yo)

3.25s

Tenure

US$6,700,422

Compensation

Ms. Anna Manning is the President of Reinsurance Group of America, Incorporated (the “Company”) from December 2015 and has been its Chief Executive Officer from 2017. Ms. Manning held the position of Senio ...


CEO Compensation Analysis

Compensation vs Market: Anna's total compensation ($USD6.70M) is about average for companies of similar size in the US market ($USD7.61M).

Compensation vs Earnings: Anna's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anna Manning
President3.25yrsUS$6.70m0.067% $4.1m
Todd Larson
Senior EVP & CFO3.92yrsUS$2.33m0.051% $3.1m
Alain Néemeh
Senior EVP & COO3.25yrsUS$2.80m0.061% $3.7m
John Laughlin
Executive Vice President of Global Financial Solutionsno dataUS$2.57m0.049% $3.0m
Leslie Barbi
Executive VP & Chief Investment Officerno datano datano data
J. Hopson
Senior Vice President - Investor Relations6.25yrsno datano data
William Hutton
Executive VP9.25yrsno data0.021% $1.3m
Lynn Phillips
Vice President of Corporate Communicationsno datano datano data
Scott Cochran
Executive Vice President of Corporate Developmentno datano datano data
Gay Burns
Executive VP & Chief Human Resource Officerno datano data0.013% $781.4k

3.9yrs

Average Tenure

57yo

Average Age

Experienced Management: RGA's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anna Manning
President3.25yrsUS$6.70m0.067% $4.1m
Stanley Tulin
Independent Director8.25yrsUS$280.65k0.012% $724.8k
Frederick Sievert
Independent Director10.25yrsUS$306.50k0.013% $781.4k
J. Eason
Independent Chairman of the Board11.5yrsUS$499.05k0.017% $1.1m
Patricia Guinn
Independent Director3.5yrsUS$269.34k0.0064% $390.1k
John Gauthier
Independent Director1.75yrsUS$137.80k0.0057% $346.9k
Steven Van Wyk
Independent Director1.17yrsno data0.0016% $97.4k
Giuseppina Albo
Independent Director0.50yrno datano data
Hazel McNeilage
Independent Director1.75yrsUS$132.52k0.00086% $52.3k
Christine Detrick
Independent Director6.25yrsUS$277.70k0.0098% $595.2k

3.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RGA's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RGA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Reinsurance Group of America, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reinsurance Group of America, Incorporated
  • Ticker: RGA
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$6.086b
  • Shares outstanding: 61.64m
  • Website: https://www.rgare.com

Number of Employees


Location

  • Reinsurance Group of America, Incorporated
  • 16600 Swingley Ridge Road
  • Chesterfield
  • Missouri
  • 63017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGANYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1993
RGPBDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1993
RZBNYSE (New York Stock Exchange)SB DB FX/FL56USUSDJun 2016

Biography

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products, as well as asset-intensive and financial reinsurance products. The company also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, it develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. The company serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:08
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.