RGA Stock Forecast & Price Target

Reinsurance Group of America Inc. demonstrated a positive financial trajectory in Q4, with book value ex AOCI increasing by 1.1% to $151.31, indicating steady growth in the company's underlying value. The enhancement of RGA's new money yield to 6.04% from 5.68% in Q3, coupled with a higher average portfolio yield of 4.80%, exemplifies the company's robust investment strategy amidst rising yields. Furthermore, the increase in the intermediate operating ROE run rate target to 13% to 15%, alongside a sustained EPS growth target of 8% to 10%, reflects reinforced confidence in the company's long-term profitability potential.

Reinsurance Group of America Inc faces a challenging outlook due to headwinds in its Asia Pacific business, which have led to a reduction in the Q1/25 EPS forecast. A projected weak global economic backdrop exacerbates this situation, with expectations of worsening benefit ratios and poor performance from international units contributing to the overall negative outlook. Additionally, higher-than-anticipated Corporate/Other expenses and shortfalls in recent earnings further undermine investor confidence, raising concerns about capital management and operational profitability.