Raymond James Financial Downgrades Reinsurance Group of America (RGA) Stock
On May 23, Raymond James Financial downgraded Reinsurance Group of America, Incorporated (NYSE:RGA)’s stock from “Strong Buy” to “Market Perform”, without a price target, as reported by The Fly.
The change in the rating comes as a result of worries related to increased competition and market challenges encountered by the company.
An individual signing the dotted line for a life insurance policy.
The firm believes that Reinsurance Group of America, Incorporated (NYSE:RGA), which offers reinsurance and financial solutions, continues to face increased competition for in-force blocks and pension risk transfers (PRTs), impacting the outlook on the company’s stock. Furthermore, the firm also expressed its concerns related to the temporary pause in the US jumbo pension risk transfer market and diminishing returns on the UK buy-in PRTs.
Collectively, such factors have been contributing to the less optimistic view of Reinsurance Group of America, Incorporated (NYSE:RGA)’s future earnings potential. However, the company’s Q1 2025 results were strong, and its traditional business performed particularly well, with its biometric claims experience remaining favorable across all the geographic segments.
While there are macro uncertainties, Reinsurance Group of America, Incorporated (NYSE:RGA) expects an attractive pipeline for organic new business and in-force transactions, with a healthy balance between them. In Q1 2025, the company’s consolidated net premiums came in at $4.0 billion, reflecting a decline of 25% YoY, with an adverse net foreign currency effect to the tune of $60 million.
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