Piper Sandler Reiterates Overweight Rating on Reinsurance Group of America (RGA)

Piper Sandler analyst John Barnidge reiterated an Overweight rating and $252.00 price target on Reinsurance Group of America (NYSE: RGA).

The analyst commented, "On 11/20/2024, RGA announced ~75% quota-share reinsurance contract with Manulife's (MFC, not covered) John Hancock subsidiary for ~$4.1 billion in liabilities ($1.9 billion in long-term care (LTC) and $2.2 billion in structured settlements). RGA will continue supporting MFC's US permanent life business on yearly renewable term. LTC characteristics match RGA's current ~$4 billion in-force block - issued post-2007 with new block accretive to '25 EPS and funded with internal capital resources. In 2024, RGA and MFC completed a coinsurance transaction for Canadian universal life, adding to three earlier Canadian and U.S. transactions. We view this announcement a positive: 1) it replaces a contract CNO recently terminated to retain new LTC businesses given CNO's desire to eat more of what it originates; 2) MET and UNM recently discussed improved market conditions of LTC, so this affirms it and 3) accretive to 2025 earnings. The mortality-as-a-service flywheel persists."

For an analyst ratings summary and ratings history on Reinsurance Group of America click here. For more ratings news on Reinsurance Group of America click here.

Shares of Reinsurance Group of America closed at $227.03 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Stripe, Advent In Talks To Buy Paypal - WSJ
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c