Reinsurance Group Q4 net income rises

Reuters02-06
Reinsurance Group Q4 net income rises 

Overview

  • Life and health reinsurer's Q4 net income rose sharply yr/yr

  • Adjusted operating income for Q4 increased yr/yr

  • Company repurchased $50 mln of common shares

Outlook

  • Company emphasizes strong balance sheet and favorable business conditions for future success

Result Drivers

  • INVESTMENT INCOME - Strong investment results, including favorable variable investment income, contributed to Q4 performance

  • PENSION RISK TRANSFER - Net premiums included a contribution from single premium pension risk transfer transactions

  • TAX RATE - Effective tax rate was below expected range, aiding net income growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 EPS

$6.97

Q4 Net Income

$463 mln

Q4 Adjusted Operating Income

$515 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the reinsurance peer group is "buy"

  • Wall Street's median 12-month price target for Reinsurance Group of America Inc is $233.50, about 13.9% above its February 4 closing price of $205.08

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw1GlH6Na

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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