RGA Stock Forecast & Price Target

Reinsurance Group of America Inc (RGA) reported a sequential increase in book value ex AOCI to $151.31, reflecting robust financial stability and growth. The company achieved an improved new money yield of 6.04%, significantly exceeding its average portfolio yield of 4.80%, which bolsters investment income and buffers against volatility. Additionally, RGA raised its intermediate operating ROE target to a range of 13% to 15%, alongside maintaining an EPS growth target of 8% to 10%, which underscores the positive outlook for future profitability and operational performance.

Reinsurance Group of America Inc. (RGA) is facing challenges that have led to a negative outlook on its stock, particularly due to expected headwinds in its Asia Pacific business that have resulted in a revised Q1/25 EPS forecast. The fourth quarter of 2024 demonstrated significant volatility, as earnings were adversely affected by claims experience in international markets, and a decline in performance from various business units compounded by higher-than-anticipated corporate expenses. The company's downside scenario indicates potential risks stemming from a weakening global economy, increased benefit ratios, and lower capital management effectiveness, which could lead to further financial strain.