Reinsurance Group of America: Medical And Rate Tailwinds Carry Further Upside (Upgrade)

Seeking Profits 5.75K Followers Follow Summary Reinsurance Group of America is upgraded to 'buy' after robust financial and underwriting results, with shares up 36% since the last review. RGA's unique focus on long-duration life and pension risk, coupled with strong claims experience and medical advancements, underpins its differentiated return profile. Investment returns have significantly outperformed peers, with alternative investments yielding 15% annualized in Q2 and new money yields expected to rise to 6.5%. With a strong capital position, disciplined deal pacing, and shares trading at 8x earnings, RGA is poised for further upside toward $300. JHVEPhoto/iStock Editorial via Getty Images Shares of Reinsurance Group of America ( RGA ) have been a solid performer over the past year, gaining about 30%. While other insurers have struggled with poor private asset returns, its portfolio has been a standout. Underwriting results have This article was written by Seeking Profits 5.75K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.