{"id":1843,"date":"2024-08-05T13:14:27","date_gmt":"2024-08-05T11:14:27","guid":{"rendered":"https:\/\/alfainvestor.es\/?p=1843"},"modified":"2024-11-21T16:27:40","modified_gmt":"2024-11-21T15:27:40","slug":"compania-de-reaseguros-lista-para-un-rally","status":"publish","type":"post","link":"https:\/\/alfainvestor.es\/index.php\/2024\/08\/05\/compania-de-reaseguros-lista-para-un-rally\/","title":{"rendered":"Compa\u00f1\u00eda de reaseguros en rally (01-08-2024)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>One of the world\u2019s largest life and health reinsurers, this #1 Quant-rated company has approximately $3.7T of life reinsurance in force and has capitalized on premium growth.<\/li>\n\n\n\n<li>Deploying a record $737M of capital in force for Q1 2024, this reinsurer generates revenue through multiple streams to deliver shareholder value with 15 consecutive years of dividend payments.<\/li>\n\n\n\n<li>Amid elevated inflation, insurance and reinsurance carriers are increasing premiums for the highly profitable and often low-volatility business, which has been showcased in its +60% 52-week rally.<\/li>\n\n\n\n<li>This financial has consecutively topped earnings and trades at a discount while showcasing attractive profitability and 25% Revenue Growth year over year.<\/li>\n\n\n\n<li>As the Fed clears a path for a potential interest rate cut in September, the company offers an attractive growth outlook and fundamentals and stands to benefit from multiple revenue streams.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1345347757\/image_1345347757.jpg?io=getty-c-w750\" alt=\"Abstract technology background with binary code, US dollars and a stethoscope\"\/><figcaption class=\"wp-element-caption\">Viorika<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Business Overview<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Reinsurance Group of America (<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\">RGA<\/a>) is a global life and health insurance company offering life and health reinsurance, living benefits reinsurance, group reinsurance, financial solutions, and more. As one of the world\u2019s largest life and health reinsurers with approximately $3.7T of life reinsurance in force and $97.6B assets as of December 31, 2023, as rated by Seeking Alpha\u2019s Quant ratings, RGA is a Strong Buy stock to watch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RGA is focused on making financial protection accessible to the masses. Although insurance companies seek to protect and insulate themselves against major claims, RGA\u2019s focus is on how to minimize other insurance companies\u2019 liabilities. Particularly in a high-cost environment, RGA is capitalizing on increasing net premiums from other life insurance providers impacted by health and geopolitical factors worldwide. COVID still plays a factor, and at the height of the pandemic, major claims, unforeseen circumstances, and deaths prompted insurers to try and safeguard against future losses. These attempts have benefitted RGA, the #1 industry Quant-rated&nbsp;<a href=\"https:\/\/seekingalpha.com\/screeners\/9409aed045-Top-Reinsurance-Stocks?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">Reinsurance stock<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RGA showcases incredible momentum, growth, and earnings power and is trading at an attractive valuation. While there have been concerns surrounding financials since the&nbsp;<a href=\"https:\/\/seekingalpha.com\/news\/4077890-a-year-after-the-regional-banking-crisis-is-there-more-trouble-on-the-horizon?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">collapse of Silicon Valley Bank<\/a>&nbsp;in March 2023, RGA has crushed the benchmark and the Financial Services (<a href=\"https:\/\/seekingalpha.com\/symbol\/XLF\">XLF<\/a>) sector, maintaining a gradual uptrend and up 60% in the past year and +39% YTD. Amid&nbsp;<a href=\"https:\/\/seekingalpha.com\/news\/4123617-cpi-continues-to-cool-in-june-with-core-yy-rate-easing-to-33?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">cooling inflation<\/a>&nbsp;and as the Consumer Price Index edged lower in June\u2014the index\u2019s first monthly decline since May 2020 \u2014 RGA has outperformed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Reinsurance Group (<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\">RGA<\/a>) vs. Financial Select Sector SPDR\u00ae Fund ETF (<a href=\"https:\/\/seekingalpha.com\/symbol\/XLF\">XLF<\/a>) vs. S&amp;P 500 1-year Trading Chart<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_4a48e59e4d4027c408d7e23ae3e0dd21.png\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_4a48e59e4d4027c408d7e23ae3e0dd21_thumb1.png\" alt=\"Reinsurance Group (<a href='https:\/\/seekingalpha.com\/symbol\/RGA' title='Reinsurance Group of America, Incorporated'&gt;RGA<\/a&gt;) vs. Financial Select Sector SPDR\u00ae Fund ETF (<a href='https:\/\/seekingalpha.com\/symbol\/XLF' title='Financial Select Sector SPDR\u00ae Fund ETF'&gt;XLF<\/a&gt;) vs. S&amp;P 500 1-year Trading Chart\"\/><\/a><figcaption class=\"wp-element-caption\">Reinsurance Group (RGA) vs. Financial Select Sector SPDR\u00ae Fund ETF (XLF) vs. S&amp;P 500 1-year Trading Chart&nbsp;(SA Premium)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Reinsurance Group of America delivered outstanding Q1 2024 earnings results and is scheduled to&nbsp;<a href=\"https:\/\/seekingalpha.com\/news\/4131208-reinsurance-group-of-america-q2-2024-earnings-preview?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">announce Q2 earnings<\/a>&nbsp;after market close today. The Q2 Consensus&nbsp;<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\/earnings\/estimates?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic&amp;source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews#hasComeFromMpArticle=false\">EPS Estimate is $5.09<\/a>&nbsp;(+15.7% Y\/Y) and the consensus Revenue Estimate is $5.14B (+23.6% Y\/Y). Although equities generally perform poorly in rising-rate environments, insurance tends to generate revenue streams through underwriting fees and investments in both up and down markets, offering inflation- and recession-resilient qualities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>RGA Stock Revisions &amp; EPS Surprises<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_7fa099153744de7b6817b7474cbce37e.png\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_7fa099153744de7b6817b7474cbce37e_thumb1.png\" alt=\"RGA Stock Revisions &amp; EPS Surprises\"\/><\/a><figcaption class=\"wp-element-caption\">RGA Stock Revisions &amp; EPS Surprises&nbsp;(SA Premium)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Increasing premiums can make for a highly profitable and often low-volatility business. The company\u2019s capital and liquidity positions are strong, and RGA continues to actively deploy capital for growth opportunities. In addition to its +60% 52-week rally, over the last two years, RGA&nbsp;<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\/earnings\/eps-surprise-summary?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic&amp;source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews#hasComeFromMpArticle=false\">has beaten EPS estimates<\/a>&nbsp;88% of the time and revenue estimates 63% of the time. Over the last 90 days, EPS estimates have seen 11&nbsp;<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\/earnings\/revisions?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic&amp;source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews#hasComeFromMpArticle=false\">upward revisions<\/a>&nbsp;and zero downward revisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Our Buy Thesis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the headwinds from rising interest rates and inflation that have impacted goods and services and the failure of many financials, RGA is laser-focused on long-term strategic operational efficiencies and deployed a record $737M of capital in force for Q1 2024. Successful transactions aid the company\u2019s ability to expand and gain momentum with clients while creating innovative solutions to strengthen business. RGA&#8217;s Senior VP andChief Financial Officer,&nbsp;<a href=\"https:\/\/rgaannualreview.com\/financial-overview\/\">Todd Larson, said<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cWith a diversified global platform, well-balanced risk profile, and strong new business momentum across our diverse geographies and business lines, we are primed to capitalize on opportunities and deliver attractive returns to our shareholders.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">RGA\u2019s strong business momentum led to its Q1 traditional premium growth of 7.8% and Return on Equity of 14.8% TTM. Each of RGA\u2019s four geographic regions met or exceeded its run rates.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_4e2635266aec089cb02a39199bf20be4.png\" alt=\"RGA Stock Q1 2024 Consolidated Results\"\/><figcaption class=\"wp-element-caption\">RGA Stock Q1 2024 Consolidated Results&nbsp;(RGA Q1 2024 Investor Presentation)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to strong capital, excellent credit quality, and liquidity, RGA\u2019s Factor Grades, which rate investment characteristics on a sector-relative basis, indicate the stock has excellent upside potential compared to financial sector peers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>RGA Factor Grades<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_41caafa64b0a8f4aaebf154561a83283.png\" alt=\"RGA Stock Factor Grades\"\/><figcaption class=\"wp-element-caption\">RGA Stock Factor Grades&nbsp;(SA Premium)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to bullish momentum and strong growth and profitability grades, as highlighted above, analysts are optimistic about Reinsurance Group as demonstrated by their upward revisions, including&nbsp;<a href=\"https:\/\/seekingalpha.com\/news\/4089336-piper-sandlers-triple-select-stocks-for-april?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">Piper Sandler<\/a>&nbsp;listing RGA among its highest-conviction stocks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">RGA Stock Growth<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">RGA has a long and consistent record of delivering profitable growth, as evidenced by 15 consecutive years of dividend payments and an&nbsp;<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\/dividends\/scorecard?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">A+ Dividend Safety Grade<\/a>. With a cash hoard of $8.21B, forward revenue growth of 11.45% versus the sector\u2019s 5.16%, and triple-digit percentage difference to the sector for year-over-year EBITDA Growth and EPS Diluted Growth, RGA offers outstanding metrics.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_9b11a9e558882803ba4414d09a9943b1.png\" alt=\"RGA Stock Growth Grades\"\/><figcaption class=\"wp-element-caption\">RGA Stock Growth Grades&nbsp;(SA Premium)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Through its disciplined investment approach, the company is focused on strong credit underwriting and high-quality, diversified fixed-income assets to balance the risks associated with market and economic volatility.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.seekingalpha.com\/uploads\/2024\/8\/1\/saupload_7727ee7ce09374989cd328fbacab888c.png\" alt=\"RGA Stock Investment Portfolio Overview\"\/><figcaption class=\"wp-element-caption\">RGA Stock Investment Portfolio Overview&nbsp;(RGA Q1 2024 Investor Presentation)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">RGA\u2019s first-quarter earnings were strong, with an EPS of $6.02 beating by $1.45 and revenue of $6.34B (49.07% Y\/Y) beating by $1.79B. RGA\u2019s fee structuring and cost control measures are part of their efficiencies to boost earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Additional key highlights for RGA\u2019s Q1 2024&nbsp;<a href=\"https:\/\/seekingalpha.com\/pr\/19710945-reinsurance-group-of-america-reports-first-quarter-results?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">include<\/a>:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Net income available to RGA shareholders of $3.16 per diluted share<\/li>\n\n\n\n<li>Adjusted operating income of $6.02 per diluted share<\/li>\n\n\n\n<li>Premium growth of 58.8% over the prior-year quarter, 59.2% on a constant currency basis<\/li>\n\n\n\n<li>ROE of 10.2%, adjusted operating ROE of 14.8% for the trailing twelve months<\/li>\n\n\n\n<li>Deployed capital of $737 million into in-force transactions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While rising interest rates can negatively impact GAAP earnings, they may lead to greater potential profitability in the long run. RGA continues to demonstrate strong growth and continues to expand its footprint to increase its network and client base. RGA\u2019s operating cash flow, forward ROE of 23%, and cash per share of $90.21 vs. the sector\u2019s $6.44 is incredible, particularly as the company remains undervalued compared to its sector peers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">RGA Financial Valuation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As showcased by its&nbsp;<a href=\"https:\/\/seekingalpha.com\/symbol\/RGA\/momentum\/performance?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic\">\u2018A\u2019 Momentum Grade<\/a>, RGA is on a bullish trend as investors actively purchase shares to drive its stock price higher. Trading at a discount, RGA offers an \u2018A\u2019 valuation grade, supported by a trailing PEG GAAP ratio of 0.33x that indicates a 30% discount. Additionally, RGA\u2019s underlying valuation metrics showcase forward EV\/Sales of more than an 80% discount and Price\/Sales of more than a 70% discount to complement the company\u2019s attractive growth. However, there are still some risks to consider before diving into a position.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Potential Risks<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Financials are considered cyclical industries linked to economic growth. Although RGA offers diversified products, supported by tailwinds from higher interest rates to help its bottom line, rising rates can also eat into investments and the market value of assets. Additionally, RGA\u2019s business primarily focuses on reinsurance for health and life, so changes in mortality, impairment, or general economic conditions, including but not limited to downturn, could impact the company. Underwriting and inadequate risk assessment, adverse capital and credit market conditions can impact the company\u2019s liquidity or access to capital and cost of capital. While these impacts should all be considered, RGA has delivered strategic and long-term business success, presenting as a disciplined underwriter and proactive risk manager.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Concluding Summary<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While many financials have suffered since the fallout from the Silicon Valley Bank collapse, Reinsurance Group of America continues to thrive, as demonstrated by record earnings numbers and consecutive EPS beats. RGA trades at a discount and offers a well-diversified portfolio. The reinsurance business offers investors a focus on investments that can perform well when markets fall or rise, particularly in the current environment. Insurance companies generate revenue by collecting and investing premiums that are not paid out as claims, including non-insurance operations. RGA has a vast footprint and is Quant-rated #1 in its industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Outperforming the benchmark and XLF over the last year, RGA has bullish momentum, is a Strong Buy on the back of solid investment fundamentals, and offers investors a company with a strong balance sheet and earnings growth potential. Consider adding Reinsurance Group of America to a portfolio.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively, we have many stocks with strong buy recommendations, and you can filter them using stock screens to suit your specific investment objectives. Consider using<a href=\"https:\/\/seekingalpha.com\/screeners?source=first_level_url%3Aalpha-picks%3Aarticles%7Ccontent_type%3Aall%7Csection%3Aapb_article%7Csection_asset%3Abody_link%7Cservice_id%3A1409%7Cservice_name%3AAlpha%20Picks%7Cservice_level%3Abasic&amp;source=position_defensively%7Cscreeners\">&nbsp;Seeking Alpha&#8217;s &#8216;Ratings Screener&#8217; tool<\/a>&nbsp;to help find stocks that achieve diversification into desired sectors you like. The Alpha Picks Team wishes you all the best in your investment journey. Happy investing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Primera recomendaci\u00f3n de agosto y os traemos una acci\u00f3n que va a despegar con fuerza. S\u00f3lo para suscriptores al servicio Alfa Investor.<\/p>\n","protected":false},"author":1,"featured_media":796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-1843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-suscriptores"],"_links":{"self":[{"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/posts\/1843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/comments?post=1843"}],"version-history":[{"count":5,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/posts\/1843\/revisions"}],"predecessor-version":[{"id":1873,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/posts\/1843\/revisions\/1873"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/media\/796"}],"wp:attachment":[{"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/media?parent=1843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/categories?post=1843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alfainvestor.es\/index.php\/wp-json\/wp\/v2\/tags?post=1843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}