Reinsurance Group of America (RGA) PT Raised to $245 at Barclays

Barclays analyst Alex Scott raised the price target on Reinsurance Group of America (NYSE: RGA) to $245.00 (from $237.00) while maintaining a Overweight rating.

The analyst comments "RGA reported strong earnings with operating EPS of $7.75 that was above our $5.49 estimate and the street’s $5.77 consensus. After adjusting for key earnings considerations in the presentation, including $(53)m of unfavorable biometric experience, $48m of favorable variable investment income above the company’s 6 percent 2025 target, and $95m of favorable in-force management actions, operating EPS comes out to $6.71. Using our normalization approach, which keeps biometric claims in and normalizes variable investment income to the 10-12% long term return, EPS would have been $6.59, still above our normalized estimate of $5.91. The $(53)m of unfavorable claims was mostly tied to the U.S. Group block already flagged earlier in the year and now fully re-priced for 2026, as well as U.S. individual life capped cohorts. Importantly, RGA did not see the adverse mortality experience from the acquired EQH block which was differentiated relative to EQH's result."

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