RGA Stock Forecast & Price Target

Reinsurance Group of America Inc reported a 1.1% sequential increase in book value ex AOCI, reaching $151.31 at the end of Q4, demonstrating solid financial health. The company showcased improved investment performance with a new money yield of 6.04%, significantly exceeding the average portfolio yield of 4.80% for the same period, indicating effective capital allocation. Additionally, the company raised its intermediate operating ROE target to a range of 13% to 15%, coupled with a consistent EPS growth target of 8% to 10%, reflecting a strong operational outlook supported by enhanced performance in various segments, particularly in Latin America.

Reinsurance Group of America Inc. is facing significant challenges, particularly in its Asia Pacific operations, leading to a downward revision of EPS forecasts for Q1/25 due to anticipated headwinds. The company reported lower earnings in Q4/24, primarily driven by adverse claims experience in international markets and increased Corporate/Other expenses that exceeded prior estimates. Additionally, under a negative scenario, the outlook includes concerns over a weak global economy, deteriorating benefit ratios, and weakening trends across international units, coupled with weak capital ratios that may hinder effective capital management.