Reinsurance Group Intrinsic Value Calculation – Royal Bank of Canada Divests 302 Shares of Reinsurance Group of America, in 2023.
March 19, 2023
Trending News ☀️
The Royal Bank of Canada recently decided to divest 302 shares of Reinsurance Group ($NYSE:RGA) of America, Incorporated. This transaction occurred in 2023, and is an important step for the reinsurance company. Reinsurance Group of America, Incorporated is a leading global provider of risk management solutions, offering a wide range of life and health reinsurance products worldwide. The sale of these shares is indicative of the Royal Bank of Canada’s commitment to financial restructuring and growth. This divestment signals a shift in focus towards other areas of their business.
The news of the divestment has been met with both excitement and concern. On one hand, investors are optimistic about the potential for both companies’ futures. On the other hand, some are concerned that the sale of these shares may affect Reinsurance Group of America, Incorporated’s existing operations. Investors and stakeholders will be watching closely as to how this will impact both entities in the coming years.
Price History
REINSURANCE GROUP‘s stock opened at $130.6 and closed at $125.5 at the end of the day, a 6.2% drop from the previous closing price of 133.7. This decision to divest shares signals that Royal Bank of Canada is confident in the future of REINSURANCE GROUP, despite the current dip in stock prices. The move was well-received by investors, who are optimistic that this will bring long-term success to both companies in 2023 and beyond. Live Quote…
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 |
| 15.89k | 623 | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Reinsurance Group. More…
| Operations | Investing | Financing |
| 1.34k | -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 |
| 84.71k | 80.47k | 54.66 |
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 |
| 3.6% | – | 6.4% |
| FCF Margin | ROE | ROA |
| 8.3% | 16.3% | 0.7% |
Analysis – Reinsurance Group Intrinsic Value Calculation
At GoodWhale, we have been analyzing the fundamentals of REINSURANCE GROUP in order to determine its fair value. We have come to the conclusion that the fair value of REINSURANCE GROUP share is around $124.4 using our proprietary Valuation Line. This means that currently REINSURANCE GROUP stock is being traded at $125.5, a fair price. We believe that this gives investors a good opportunity to invest in a stable and valued stock. More…
Peers
RGA’s main competitors are American Financial Group Inc, AXA SA, MetLife Inc. All three companies compete for business from insurance companies by offering reinsurance products that help insurance companies manage their risks. RGA has a strong market position and a diversified product portfolio, which gives it a competitive advantage over its rivals.
– American Financial Group Inc ($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
Investors should keep an eye on Reinsurance Group of America, Inc. (RGA) following the Royal Bank of Canada’s divestment of 302 shares in the firm in 2023. Media sentiment around the news has been largely positive, however, the stock price dropped on the same day. This could indicate that the divestment was already priced into the stock. Nevertheless, investors should take a closer look at RGA as a potential investment option. Analysts recommend researching the company’s financials, operational performance and competitive landscape to get a better idea of its investment prospects.
Additionally, investors should factor in the recent changes in the reinsurance industry and its impact on RGA’s stock price when deciding whether to buy or sell their shares.
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