Reinsurance Group (RGA) Rides On Steady Top-Line Improvement
Zacks Investment Research | Dec 05, 2018 08:55PM ET
Reinsurance Group of America, Incorporated (NYSE:RGA) , a provider of traditional individual and group life, asset-intensive, critical illness and financial reinsurance, has been displaying top-line growth over a considerable period of time owing to higher net premiums and investment income. This growth trajectory is anticipated to continue into the upcoming quarters as well, which in turn, will drive the company’s financial performance.
Moreover, product-line expansion with market leading services, capabilities, expertise and innovation should consistently aid the company’s top-line improvement.
Riding on the strength of rising interest rates, the company has been witnessing better investment results over the past few quarters and we expect this momentum to remain in the near term on the back of a favorable rate environment reflecting steady hikes in interest rate.
The life insurer’s international operations generate one-third of its total premiums. The company has a significant presence in Hong Kong, Japan, India, Korea and Taiwan. Notably, economic growth and demographic trends leading to a rapid flourish in the insurance market offer ample growth opportunities in these regions.
Reinsurance Group has a strong capital management policy in place that enhances its shareholder value through share buybacks and dividend hikes. Additionally, an excess capital of about $1.1 billion at third-quarter end will help the company maintain financial flexibility to pursue growth initiatives.
The stock also carries a favorable Zacks Investment Research
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