Reinsurance Group of America (NYSE:RGA) Reaches New 1-Year High Following Earnings Beat

Reinsurance Group of America, Incorporated (NYSE:RGA) shares reached a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $227.80 and last traded at $225.1940, with a volume of 76458 shares trading hands. The stock had previously closed at $205.99.

The insurance provider reported $7.75 earnings per share for the quarter, beating the consensus estimate of $5.86 by $1.89. Reinsurance Group of America had a net margin of 4.99% and a return on equity of 13.34%. The firm had revenue of $6.64 billion for the quarter, compared to analyst estimates of $6.25 billion. During the same quarter in the prior year, the business earned $4.99 EPS. The company’s revenue for the quarter was up 26.6% compared to the same quarter last year.

Reinsurance Group of America Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 3rd. Stockholders of record on Tuesday, February 17th will be paid a $0.93 dividend. The ex-dividend date of this dividend is Tuesday, February 17th. This represents a $3.72 dividend on an annualized basis and a dividend yield of 1.6%. Reinsurance Group of America’s dividend payout ratio is 20.96%.

Key Reinsurance Group of America News

Here are the key news stories impacting Reinsurance Group of America this week:

• Positive Sentiment: Q4 earnings beat — RGA reported EPS of $7.75 vs. consensus ~$5.86 and revenue of roughly $6.6B, up ~26.6% year-over-year; the results materially exceeded estimates and are the main driver of the rally. Press Release
• Positive Sentiment: Dividend confirmed — the board declared a quarterly dividend of $0.93 per share (annualized yield ~1.6%), reinforcing cash return to shareholders and supporting investor sentiment. Dividend Announcement
• Positive Sentiment: Strong full-year commentary — company materials and analyst notes flag robust underlying results for the year and favorable trends in reinsurance/investment income that supported full-year performance. TipRanks Summary
• Neutral Sentiment: Conference call / transcript available — management provided detail on drivers (business mix, investment positioning, and the Portland industrial exposure) that investors will parse for sustainability of results; read the transcript for specific management remarks. Earnings Call Transcript
• Neutral Sentiment: Analyst coverage and metric analysis — outlets (Zacks, Investing, Yahoo) highlight the beats but note metrics analysts will watch (loss reserves, investment yields, and expense trends); these analyses help set expectations for upcoming quarters. Zacks Analysis
• Negative Sentiment: Short-term liquidity and margin context — the company’s reported ratios (low current/quick ratios) and a modest net margin (~3.9%) are areas of caution for some investors concerned about balance-sheet flexibility and expense/leverage sensitivity. Company Financials Snapshot

Analysts Set New Price Targets

A number of research analysts have commented on the company. Keefe, Bruyette & Woods lowered their target price on Reinsurance Group of America from $255.00 to $240.00 and set an “outperform” rating on the stock in a research note on Monday, November 3rd. Wall Street Zen raised Reinsurance Group of America from a “hold” rating to a “buy” rating in a research note on Saturday. Barclays set a $245.00 price objective on Reinsurance Group of America and gave the stock an “overweight” rating in a report on Friday. Morgan Stanley set a $208.00 price objective on shares of Reinsurance Group of America in a research report on Monday, December 15th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Reinsurance Group of America in a research report on Monday, December 29th. Eight research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Reinsurance Group of America presently has a consensus rating of “Moderate Buy” and a consensus price target of $243.22.

Institutional Trading of Reinsurance Group of America

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in Reinsurance Group of America in the 2nd quarter valued at $167,955,000. Orion Porfolio Solutions LLC boosted its holdings in Reinsurance Group of America by 6,076.4% during the second quarter. Orion Porfolio Solutions LLC now owns 602,503 shares of the insurance provider’s stock valued at $119,512,000 after acquiring an additional 592,748 shares during the period. Laurel Wealth Advisors LLC grew its position in shares of Reinsurance Group of America by 19,387.3% in the second quarter. Laurel Wealth Advisors LLC now owns 561,818 shares of the insurance provider’s stock valued at $111,442,000 after purchasing an additional 558,935 shares during the last quarter. American Century Companies Inc. increased its stake in shares of Reinsurance Group of America by 35.2% in the second quarter. American Century Companies Inc. now owns 2,044,818 shares of the insurance provider’s stock worth $405,610,000 after purchasing an additional 532,891 shares during the period. Finally, Nordea Investment Management AB lifted its position in shares of Reinsurance Group of America by 534.1% during the 2nd quarter. Nordea Investment Management AB now owns 570,386 shares of the insurance provider’s stock worth $112,828,000 after purchasing an additional 480,435 shares during the last quarter. 95.11% of the stock is currently owned by institutional investors and hedge funds.

Reinsurance Group of America Stock Up 9.5%

The firm has a 50-day moving average of $200.57 and a two-hundred day moving average of $193.70. The firm has a market cap of $14.83 billion, a price-to-earnings ratio of 12.71 and a beta of 0.53. The company has a current ratio of 0.13, a quick ratio of 0.13 and a debt-to-equity ratio of 0.44.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated (NYSE: RGA) is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company’s offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA’s product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.