Reinsurance Group Upped to Outperform - Analyst Blog

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On Jan 9, we upgraded our recommendation on Reinsurance Group of America Inc. ( RGA ) 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 in 2014.

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. ( PL ), Lincoln National Corp. ( LNC ), Prudential Financial Inc. ( PRU ). All these stocks carry a Zacks Rank #2 (Buy).



LINCOLN NATL-IN (LNC): Free Stock Analysis Report

PROTECTIVE LIFE (PL): Free Stock Analysis Report

PRUDENTIAL FINL (PRU): Free Stock Analysis Report

REINSURANCE GRP (RGA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: LNC , PL , PRU , RGA

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