RGA

Reinsurance Group of AmericaNYSE:RGA Stock Report

Market Cap

US$7.6b

7D

-3.3%

1Y

11.1%

Updated

18 Sep, 2021

Data

Company Financials +
RGA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends5/6

RGA Overview

Reinsurance Group of America, Incorporated engages in reinsurance business.

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RGA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

RGA

-0.7%

US Insurance

-0.6%

US Market


1 Year Return

11.1%

RGA

35.9%

US Insurance

33.8%

US Market

Return vs Industry: RGA underperformed the US Insurance industry which returned 35.9% over the past year.

Return vs Market: RGA underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

RGAIndustryMarket
7 Day-3.3%-0.7%-0.6%
30 Day-5.8%-0.5%2.0%
90 Day-1.3%6.4%4.7%
1 Year13.8%11.1%39.2%35.9%35.8%33.8%
3 Year-19.5%-24.6%34.2%24.1%60.0%50.1%
5 Year13.2%3.1%79.0%56.6%123.0%98.7%

Long-Term 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

Reinsurance Group of America Fundamentals Summary

How do Reinsurance Group of America's earnings and revenue compare to its market cap?
RGA fundamental statistics
Market CapUS$7.56b
Earnings (TTM)US$828.00m
Revenue (TTM)US$16.04b

9.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RGA income statement (TTM)
RevenueUS$16.04b
Cost of RevenueUS$13.85b
Gross ProfitUS$2.20b
ExpensesUS$1.37b
EarningsUS$828.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)12.19
Gross Margin13.69%
Net Profit Margin5.16%
Debt/Equity Ratio26.0%

How did RGA perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

23%

Payout Ratio

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 ($111.19) is trading below our estimate of fair value ($233.74)

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 (9.1x) compared to the US Insurance industry average (9.5x).

PE vs Market: RGA is good value based on its PE Ratio (9.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RGA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RGA is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Reinsurance Group of America forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGA's forecast earnings growth (7.9% per year) is above the savings rate (2%).

Earnings vs Market: RGA's earnings (7.9% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: RGA's revenue (2.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: RGA's revenue (2.7% 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 (8.2%).


Past Performance

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

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGA has high quality earnings.

Growing Profit Margin: RGA's current net profit margins (5.2%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: RGA's earnings have declined by 7.9% per year over the past 5 years.

Accelerating Growth: RGA's earnings growth over the past year (45.8%) exceeds its 5-year average (-7.9% per year).

Earnings vs Industry: RGA earnings growth over the past year (45.8%) underperformed the Insurance industry 76%.


Return on Equity

High ROE: RGA's Return on Equity (6.2%) is considered low.


Financial Health

How is Reinsurance Group of America's financial position?


Financial Position Analysis

Short Term Liabilities: RGA's short term assets ($8.3B) do not cover its short term liabilities ($9.4B).

Long Term Liabilities: RGA's short term assets ($8.3B) do not cover its long term liabilities ($66.1B).


Debt to Equity History and Analysis

Debt Level: RGA's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: RGA's debt to equity ratio has reduced from 52.8% to 26% over the past 5 years.

Debt Coverage: RGA's debt is well covered by operating cash flow (87.9%).

Interest Coverage: RGA's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGA's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: RGA's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (23%), 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 (22.1% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Anna Manning (62 yo)

4.67yrs

Tenure

US$9,044,233

Compensation

Ms. Anna Manning is a Director at The Geneva Association since June 10, 2020. She is the President of Reinsurance Group of America, Incorporated from December 2015 and has been its Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Anna's total compensation ($USD9.04M) is above average for companies of similar size in the US market ($USD6.44M).

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


Leadership Team

Experienced Management: RGA's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: RGA's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RGA insiders have only sold shares 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$7.561b
  • Shares outstanding: 68.00m
  • Website: https://www.rgare.com

Number of Employees


Location

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

Listings


Biography

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, gr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:08
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.