Reinsurance Group of America, Incorporated (RGA) Company Bio
Reinsurance Group of America engages in the 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 was founded in 1973 and is based in Chesterfield, Missouri.
RGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RGA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Reinsurance Group Of America Inc ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 804.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Reinsurance Group Of America Inc, consider:
Reinsurance Group Of America Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.76% of tickers in our DCF set.
As a business, Reinsurance Group Of America Inc experienced a tax rate of about 17% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than 68.88% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OXSQ, SLRC, MCC, AFG, and AAME can be thought of as valuation peers to RGA, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
As important as hustle is, grit and resilience are equally as important. - Troy Carter Despite Reinsurance Group of America's (RGA) reporting a 22% net income decline on its Q2 2020 earnings report, RGA managed to snag an A+ (Superior) Financial Strength Rating and an "aa-" Long-Term Issuer Credit Ratings...
Michael A. Gayed, CFA on Seeking Alpha | September 14, 2020
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of RGA Reinsurance Company (Chesterfield, MO), RGA Americas Reinsurance Company, Ltd (Bermuda) and its subsidiaries, RGA Life Reinsurance Company of Canada (Toronto, Canada) and RGA Atlantic Reinsurance Company, Ltd. (Barbados). These companies collectively are referred to as RGA. AM Best also has affirmed the Long-Term ICR of “a-”
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA) a leading global life and health reinsurer, today announced the appointment of Stephen T. O’Hearn and Ng Keng Hooi to its Board of Directors. Mr. O’Hearn will begin his service on October 1, 2020. Mr. Ng will join mid-2021 following the completion of a previous post-retirement commitment. The addition of Mr. O’Hearn and Mr. Ng increases the number of RGA directors to 12. “RGA is fortunate to add the extensive exp