Reinsurance Group of America (NYSE: RGA) is one of 38 publicly-traded companies in the “Life insurance” industry, but how does it weigh in compared to its peers? We will compare Reinsurance Group of America to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Reinsurance Group of America and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reinsurance Group of America 1 5 2 0 2.13
Reinsurance Group of America Competitors 329 1165 1540 84 2.44

Reinsurance Group of America currently has a consensus target price of $158.63, indicating a potential upside of 5.38%. As a group, “Life insurance” companies have a potential upside of 10.03%. Given Reinsurance Group of America’s peers stronger consensus rating and higher possible upside, analysts clearly believe Reinsurance Group of America has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Reinsurance Group of America and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reinsurance Group of America $12.52 billion $1.82 billion 13.89
Reinsurance Group of America Competitors $22.05 billion $1.25 billion 15.75

Reinsurance Group of America’s peers have higher revenue, but lower earnings than Reinsurance Group of America. Reinsurance Group of America is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Reinsurance Group of America pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Reinsurance Group of America pays out 18.5% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.2% and pay out 29.3% of their earnings in the form of a dividend. Reinsurance Group of America has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

93.5% of Reinsurance Group of America shares are held by institutional investors. Comparatively, 51.3% of shares of all “Life insurance” companies are held by institutional investors. 0.7% of Reinsurance Group of America shares are held by company insiders. Comparatively, 17.3% of shares of all “Life insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Reinsurance Group of America and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reinsurance Group of America 14.01% 8.04% 1.17%
Reinsurance Group of America Competitors 4.08% 4.71% 0.85%

Risk and Volatility

Reinsurance Group of America has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Reinsurance Group of America’s peers have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Summary

Reinsurance Group of America peers beat Reinsurance Group of America on 9 of the 15 factors compared.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products, as well as asset-intensive and financial reinsurance products. The company also provides reinsurance for mortality, morbidity, and lapse risk associated with products; and reinsurance for investment-related risks, as well as develops and markets technology solutions for the insurance industry. It serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri.

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