Reinsurance Group Intrinsic Value Calculation – Is Reinsurance Group of America’s Earnings Worthy of Your Consideration?
August 8, 2023
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Reinsurance Group ($NYSE:RGA) of America (RGA) is a global provider of life reinsurance, disability and health reinsurance, and financial solutions, based in St. Louis, Missouri. Now, the question is: should you pay attention to RGA’s earnings? In short, yes. The company has a strong history of consistent earnings growth, reporting an average operating income of more than $2 billion over the last five years. This performance has recently been boosted by a number of acquisitions that have broadened RGA’s portfolio and increased its market presence.
Furthermore, RGA’s stock price has been consistently rising over the past year, and it currently trades above its long-term average. As such, investors may want to take a closer look at RGA’s earnings and consider adding it to their portfolio. With its strong financials and steady growth prospects, RGA could be an excellent investment choice for those looking for a safe and secure long-term bet.
Earnings
Reinsurance Group of America’s earnings report for FY2023 Q2 ending June 30 2021 shows a strong performance. Total revenue increased from 4137.0M USD to 4156.0M USD, a 8.6% increase over the previous year. Net income increased even more substantially, at a 73.7% increase to 344.0M USD. This indicates that REINSURANCE GROUP is in a strong financial position and their earnings are worth consideration.
The company’s strong performance in spite of challenging market conditions is admirable, and investors should consider REINSURANCE GROUP’s stock as a viable option for their portfolio. The company’s current financials and growth projections indicate that it is a strong contender for investment and could be a great choice for those looking to diversify their portfolio.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Reinsurance Group. More…
| Total Revenues | Net Income | Net Margin |
| 16.72k | 945 | 5.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Reinsurance Group. More…
| Operations | Investing | Financing |
| 2.75k | -5.69k | 4.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Reinsurance Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 89.04k | 81.14k | 117.29 |
Key Ratios Snapshot
Some of the financial key ratios for Reinsurance Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | – | 8.8% |
| FCF Margin | ROE | ROA |
| 16.3% | 11.9% | 1.0% |
Price History
Reinsurance Group of America (RGA) has had a rocky week on the stock market. This downturn has raised the question of whether or not RGA is a worthwhile investment. Considering the company’s performance over the past few months, there are reasons to be optimistic. Despite a decrease in stock value this week, RGA remains a strong choice for investors looking for a long-term return.
In addition to their consistent growth and increasing revenue, the company is also known for its innovative products and services that help meet their customers’ needs. With their performance over the past year and their dedication to their customers, RGA is a worthy consideration for investors looking for a reliable company. Live Quote…
Analysis – Reinsurance Group Intrinsic Value Calculation
At GoodWhale, we’ve been closely analyzing the fundamentals of REINSURANCE GROUP. After careful consideration of all available data, we have determined that the intrinsic value of REINSURANCE GROUP share is around $130.8, calculated by our proprietary Valuation Line. Despite this, REINSURANCE GROUP stock is currently being traded at $139.6, resulting in a 6.7% overvaluation. While this may be a fair price to some investors, it’s important to note that it is still higher than its estimated intrinsic value. More…
Peers
RGA’s main competitors are American Financial Group Inc, AXA SA, MetLife Inc. All three companies compete for business from insurance companies by offering reinsurance products that help insurance companies manage their risks. RGA has a strong market position and a diversified product portfolio, which gives it a competitive advantage over its rivals.
– American Financial Group Inc ($NYSE:AFG)
American Financial Group Inc is a holding company that operates insurance and investment businesses through the following subsidiaries: Great American Insurance Company, Annuity Investors Life Insurance Company, Union Central Life Insurance Company, and National Interstate Insurance Company. The company has a market cap of 10.85B as of 2022 and a Return on Equity of 19.27%. The company’s insurance subsidiaries specialize in property and casualty insurance, including commercial multi-peril, workers’ compensation, automobile, and homeowners’ insurance. The investment subsidiaries manage fixed-income securities, equity investments, and real estate investments.
– AXA SA ($LTS:0HAR)
AXA SA is a French multinational insurance firm headquartered in the 8th arrondissement of Paris that engages in global insurance, investment management, and other financial services. The company is a component of the Euro Stoxx 50 stock market index.
As of 2022, AXA SA had a market capitalization of €55.97 billion and a return on equity of 9.83%. The company offers a wide range of insurance and investment products and services, including life, property and casualty, health, and asset management.
– MetLife Inc ($NYSE:MET)
MetLife is one of the largest life insurance companies in the world, with over $500 billion in assets. The company has a strong focus on customer service and has a wide range of products to meet the needs of its customers. MetLife has a strong financial position and is well-positioned to continue to grow its business in the future.
Summary
Going forward, RGA is well-positioned to further improve its bottom line as the global economy recovers from the pandemic. It remains an attractive option for investors looking for a diversified play in the insurance space.
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