NYSE:RGA

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Reinsurance Group of America

Executive Summary

Reinsurance Group of America, Incorporated engages in reinsurance business. More Details


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RGA's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

RGA

1.9%

US Insurance

1.5%

US Market


1 Year Return

-24.2%

RGA

-3.4%

US Insurance

22.3%

US Market

Return vs Industry: RGA underperformed the US Insurance industry which returned -3.9% over the past year.

Return vs Market: RGA underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

RGAIndustryMarket
7 Day3.3%1.9%1.5%
30 Day21.9%13.4%8.8%
90 Day28.7%11.8%10.8%
1 Year-22.2%-24.2%-0.8%-3.4%25.1%22.3%
3 Year-18.6%-23.3%12.2%3.9%49.5%39.6%
5 Year56.5%43.3%57.6%38.0%105.8%83.3%

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

Valuation

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

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGA ($124.19) is trading below our estimate of fair value ($158.94)

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


Price To Earnings Ratio

PE vs Industry: RGA is poor value based on its PE Ratio (15.4x) compared to the US Insurance industry average (14.1x).

PE vs Market: RGA is good value based on its PE Ratio (15.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: RGA is good value based on its PEG Ratio (0.4x)


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 (0.9x).


Next Steps

Future Growth

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

38.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGA's forecast earnings growth (38.5% per year) is above the savings rate (2.2%).

Earnings vs Market: RGA's earnings (38.5% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RGA's revenue (4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RGA's revenue (4% 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 (7.7%).


Next Steps

Past Performance

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

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGA has high quality earnings.

Growing Profit Margin: RGA's current net profit margins (3.6%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: RGA's earnings have grown by 3.9% 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 (-30.6%) over the past year, making it difficult to compare to the Insurance industry average (6%).


Return on Equity

High ROE: RGA's Return on Equity (3.9%) 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 ($7.9B) do not cover its short term liabilities ($8.9B).

Long Term Liabilities: RGA's short term assets ($7.9B) do not cover its long term liabilities ($60.0B).


Debt to Equity History and Analysis

Debt Level: RGA's debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: RGA's debt to equity ratio has reduced from 52.4% to 30.1% over the past 5 years.

Debt Coverage: RGA's debt is well covered by operating cash flow (83.4%).

Interest Coverage: RGA's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGA's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: RGA's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 reasonably low payout ratio (34.7%), 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 (22.5% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Anna Manning (61 yo)

3.92yrs

Tenure

US$8,116,275

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 ($USD8.12M) is about average for companies of similar size in the US market ($USD7.03M).

Compensation vs Earnings: Anna's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anna Manning
President3.92yrsUS$8.12m0.081%
$ 6.6m
Todd Larson
Senior EVP & CFO4.58yrsUS$2.81m0.050%
$ 4.1m
Alain Néemeh
Senior EVP & COO3.92yrsUS$4.63m0.059%
$ 4.8m
John Laughlin
Executive Vice Presidentno dataUS$3.83m0.048%
$ 3.9m
Kin-Shun Cheng
Executive VP & Head of Asiano dataUS$2.60m0.022%
$ 1.8m
Leslie Barbi
Executive VP & Chief Investment Officer0.92yrno datano data
J. Hopson
Senior Vice President - Investor Relations6.92yrsno datano data
William Hutton
Executive VP9.92yrsno data0.022%
$ 1.8m
Lynn Phillips
Vice President of Corporate Communicationsno datano datano data
Gay Burns
Executive VP & Chief Human Resource Officerno datano data0.015%
$ 1.2m
Jonathan Porter
Executive VP & Global Chief Risk Officerno datano data0.0049%
$ 396.1k
Dennis Barnes
Executive Vice Presidentno datano data0.00029%
$ 23.5k

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: RGA's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anna Manning
President3.92yrsUS$8.12m0.081%
$ 6.6m
Stanley Tulin
Independent Director8.92yrsUS$302.56k0.015%
$ 1.2m
Frederick Sievert
Independent Director10.92yrsUS$149.19k0.012%
$ 945.7k
J. Eason
Independent Chairman of the Board12.17yrsUS$495.79k0.020%
$ 1.6m
Patricia Guinn
Independent Director4.17yrsUS$301.49k0.0083%
$ 673.8k
John Gauthier
Independent Director2.42yrsUS$265.02k0.0077%
$ 621.8k
Steven Van Wyk
Independent Director1.83yrsUS$265.02k0.0015%
$ 118.5k
Giuseppina Albo
Independent Director1.17yrsUS$75.83kno data
Hazel McNeilage
Independent Director2.42yrsUS$115.00k0.00078%
$ 63.3k
Christine Detrick
Independent Director6.92yrsUS$275.86k0.011%
$ 922.2k
Stephen O'Hearn
Director0.17yrno datano data

4.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: RGA's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


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$8.118b
  • Shares outstanding: 67.94m
  • 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, 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 Analysis2020/12/04 23:15
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.