On Jun 10, 2013, the shares of
Reinsurance Group of America Inc.
) reached a 52-week high of $67.13. The momentum was driven by
the company's first-quarter results, which included a 2.48%
Further, Reinsurance Group of America's leading market
position, diversified product portfolio and strong capital
position provide the fundamental strength required to drive share
value. With respect to earnings trend, the company delivered
positive earnings surprise in 2 of the past 4 quarters, with an
average beat of 1.03%.
On Apr 25, 2013, Reinsurance Group of America reported first
quarter 2013 net operating earnings of $1.65 per share, exceeding
the Zacks Consensus Estimate of $1.61 per share. Results were
also ahead of the year-ago earnings by 8.6%.
The earnings beat came on the back of strong performance in
the U.S., Europe and South Africa segments.
Total revenue of Reinsurance Group increased 13.4% year over
year to $2.6 billion in the reported quarter, driven by increase
in net premiums (up 6.2% year over year), net investment income
(up 24.7% year over year) and investment related gains (up 116.8%
year over year to $94.4 million). Results also exceeded the Zacks
Consensus Estimate of $2.4 billion.
Additionally, Reinsurance Group announced a 33.3% hike in its
quarterly dividend to 24 cents per share during the first quarter
earnings release. The company spent $47.6 million on share
repurchases and authorized a $100 million increase to the $200
million share repurchase program authorized in Jan
However, valuation for Reinsurance Group looks stretched. The
shares are trading at a discount to the peer group average on a
forward price-to-earnings basis but at premium on a price-to-book
basis with return on equity lower than the peer group average.
Nevertheless, the 1-year return from the stock came in at 30.5%,
above the S&P's return of 22.7%.
Reinsurance Group of America currently carries a Zacks Rank #3
(Hold). Other carriers worth consideration are
Genworth Financial Inc.
Stancorp financial Group Inc.
Protective Life Corp.
) all with Zacks Rank #2 (Buy).
GENWORTH FINL (GNW): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
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