NYSE:RGA

Stock Analysis Report

Reinsurance Group of America

Executive Summary

Reinsurance Group of America, Incorporated engages in reinsurance business.

Snowflake

Fundamentals

Established dividend payer and good value.


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


Market Performance


7 Day Return

1.3%

RGA

0.7%

US Insurance

1.8%

US Market


1 Year Return

14.4%

RGA

13.5%

US Insurance

7.3%

US Market

Return vs Industry: RGA exceeded the US Insurance industry which returned 13.5% over the past year.

Return vs Market: RGA exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

RGAIndustryMarket
7 Day1.3%0.7%1.8%
30 Day-0.9%-2.2%-0.7%
90 Day0.1%-2.0%0.06%
1 Year16.3%14.4%16.3%13.5%9.7%7.3%
3 Year52.1%45.4%43.7%32.7%46.3%36.9%
5 Year110.5%95.0%70.9%50.5%64.5%46.5%

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?

30.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RGA ($156.73) is trading below our estimate of fair value ($226.35)

Significantly Undervalued: RGA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RGA is good value based on its PE Ratio (12.6x) compared to the Insurance industry average (15.6x).

PE vs Market: RGA is good value based on its PE Ratio (12.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: RGA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: RGA is good value based on its PB Ratio (0.9x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Reinsurance Group of America forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGA's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).

Earnings vs Market: RGA's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: RGA's revenue (4.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: RGA's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RGA's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

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

18.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RGA's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: RGA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RGA had negative earnings growth (-55.2%) over the past year, making it difficult to compare to the Insurance industry average (1.4%).


Return on Equity

High ROE: RGA's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: RGA's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: RGA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Reinsurance Group of America's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RGA has a low level of unsold assets or inventory.

Debt Coverage by Assets: RGA's debt is covered by short term assets (assets are 1.706070x debt).


Financial Institutions Analysis

Asset Level: RGA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RGA has a sufficient allowance for bad loans.

Low Risk Liabilities: RGA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RGA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RGA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RGA has an appropriate level of bad loans.


Next Steps

Dividend

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

1.79%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.7%industryaverage2.4%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RGA's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RGA's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (19.3%), 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 (20.7% payout ratio).


Next Steps

Management

What is the CEO of Reinsurance Group of America's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Anna Manning (60yo)

2.8yrs

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 ($USD6.70M) is below average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: RGA's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: RGA's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: RGA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$240,00016 Sep 19
William Hutton
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,500
Max PriceUS$160.00
SellUS$237,22410 Sep 19
William Hutton
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,500
Max PriceUS$158.15
SellUS$116,09616 Aug 19
Arnoud W. Boot
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$145.12
SellUS$542,86613 May 19
Alain Néemeh
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares3,668
Max PriceUS$148.00
SellUS$174,00026 Feb 19
Alan Henderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$145.00
SellUS$259,10419 Feb 19
John Hayden
EntityIndividual
Role
Senior Key Executive
Executive VP & Controller
Shares1,797
Max PriceUS$144.19
SellUS$137,31515 Feb 19
Alan Henderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares947
Max PriceUS$145.00
BuyUS$13,05331 Dec 18
Timothy Matson
EntityIndividual
Shares100
Max PriceUS$130.53
BuyUS$27,51413 Dec 18
Timothy Matson
EntityIndividual
Shares200
Max PriceUS$137.57
SellUS$90,52007 Nov 18
Arnoud W. Boot
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares620
Max PriceUS$146.00

Ownership Breakdown


Management Team

  • Todd Larson (55yo)

    Senior EVP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$2.33m
  • Alain Néemeh (51yo)

    Senior EVP & COO

    • Tenure: 2.8yrs
    • Compensation: US$2.80m
  • Jeff Hopson

    Senior Vice President - Investor Relations

    • Tenure: 5.8yrs
  • John Hayden (52yo)

    Executive VP & Controller

    • Tenure: 0yrs
  • William Hutton (59yo)

    Executive VP

    • Tenure: 8.8yrs
  • John Laughlin (64yo)

    Executive Vice President of Global Financial Solutions

    • Tenure: 0yrs
    • Compensation: US$2.57m
  • Anna Manning (60yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$6.70m
  • Scott Cochran (46yo)

    Executive Vice President of Corporate Development

    • Tenure: 0yrs
  • Gay Burns

    Executive VP & Chief Human Resource Officer

    • Tenure: 0yrs
  • Lynn Phillips

    Vice President of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Alan Henderson (73yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$152.58k
  • Stan Tulin (69yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$280.65k
  • Fred Sievert (71yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$306.50k
  • J. Eason (71yo)

    Independent Chairman of the Board

    • Tenure: 11yrs
    • Compensation: US$499.05k
  • Tricia Guinn (64yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$269.34k
  • John Danahy (72yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$297.58k
  • Arnoud W. Boot (59yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$302.58k
  • Hazel McNeilage (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$132.52k
  • Anna Manning (60yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$6.70m
  • Christine Detrick (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$277.70k

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$9.837b
  • Shares outstanding: 62.76m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:11
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.