On Jan 9, we upgraded our recommendation on
Reinsurance Group of America Inc.
) to Outperform from Neutral, reflecting the company's strong
performance in the first nine months of 2013. We also believe
that the company will benefit from improving operating conditions
Why the Upgrade?
Our improved outlook on this Zacks Rank #1 (Strong Buy) stock
comes on the back of Reinsurance Group's sturdy top and
bottom-line performance across all operating segments. The
company shows healthy signs of retaining this momentum going into
2014 as well.
Reinsurance Group holds a significant position in the U.S. and
Canada. Further, the company is fully geared to maintain its
competitive position in the North American reinsurance market by
growing its Facultative Reinsurance, Automatic Reinsurance and In
Force Block Reinsurance.
In a bid to maintain its market position, the company is also
focusing on its underwriting standards, prompt response on
quotes, competitive pricing as well as its capacity and
flexibility to meet its customer needs.
Additionally, the company is growing its international operations
to reap the benefits of diversification. The company
achieves superior stability through geographic operational
diversity and a strategic mix of products and services.
Reinsurance Group also expects to benefit from an increase in
interest rates anticipated this year.
Moreover, the ongoing execution of the company's capital
management strategy continues to enhance key profitability and
return measures. The company carries an investment grade rating
from leading rating agencies.
Other Stocks to Consider
Other insurance stocks that warrant a look include
Protective Life Corp.
Lincoln National Corp.
Prudential Financial Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
LINCOLN NATL-IN (LNC): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
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