Principal Financial, Reinsurance Group of America, MetLife Seen Backed by Q2 Trends, Morgan Stanley Says

MT Newswires Live07-07

Principal Financial Group (PFG) is facing a more favorable setup reflecting the strong equity market, while Reinsurance Group of America (RGA) should continue to gain from favorable mortality trends, Morgan Stanley said in a Monday note.

The firm also expects stable interest rates and stabilized favorable mortality to provide a supportive backdrop for Q2 earnings in the insurance sector, offset in part by weaker variable investment income, paid medical family leave pressures and yen weakness.

The firm said Globe Life (GL) could provide additional updates on assumption review gains following favorable mortality trend, while higher living costs are expected to continue weighing on agent productivity and sales at Primerica (PRI). MetLife (MET) should benefit from the appreciation of Brazilian real and Mexican peso during the quarter, according to the note.

Morgan Stanley raised its price targets on Principal Financial Group to $112 from $107, MetLife to $103 from $93 and Globe Life to $208 from $181.

Price: 112.06, Change: +1.19, Percent Change: +1.07

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