trending Market Intelligence /marketintelligence/en/news-insights/trending/tvwxn35xk1m2oi2vfvufhw2 content esgSubNav
In This List

KBW sees Reinsurance Group of America's current valuation as good entry point

Blog

Insurance Underwriting Transformed How Insurers Can Harness Probability of Default Models for Smarter Credit Decisions

Blog

The Worlds Largest Life Insurers, 2023

Blog

The World's Largest P&C Insurers, 2023

Blog

Essential IR Insights Newsletter Fall - 2023


KBW sees Reinsurance Group of America's current valuation as good entry point

Keefe Bruyette & Woods analyst Ryan Krueger upgraded Reinsurance Group of America Inc. to "outperform" from "market perform" after the 12% year-to-date pullback in the stock.

Krueger wrote that current valuation is a good entry point for investors as the stock trades at 1.15x book value excluding accumulated other comprehensive income versus an 11% return on equity and 10x 2019 EPS estimate.

He said Reinsurance Group of America generated "very consistent" results over the past few years, with five-, 10- and 15-year book value plus dividend growth of 11% yearly, operating return on equities of 11% to 12% and net income equaling operating income.

Krueger projects solid organic growth for the company, expecting operating revenues to grow about 6% to 7% over the intermediate term.

He maintained his target price of $165. His EPS estimates remained at $11.35 for 2018, $13.40 for 2019 and $14.55 for 2020.