Zacks Premium and Style Scores Overview - Zacks Premium offers tools like daily updates of Zacks Rank and Industry Rank, access to Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - Zacks Style Scores complement the Zacks Rank by rating stocks based on value, growth, and momentum characteristics, helping investors identify stocks with high potential to outperform the market [2][3] Zacks Style Scores Breakdown - **Value Score**: Focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow ratios [3] - **Growth Score**: Evaluates a company's future prospects and financial health by analyzing projected and historic earnings, sales, and cash flow [4] - **Momentum Score**: Identifies stocks with strong price or earnings trends using factors like one-week price change and monthly percentage change in earnings estimates [4] - **VGM Score**: Combines Value, Growth, and Momentum Scores to provide a comprehensive rating for stocks, helping investors narrow down the most attractive opportunities [5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988, outperforming the S&P 500 [6][7] - Combining Zacks Rank 1 or 2 with Style Scores of A or B maximizes the probability of success, while stocks with 3 (Hold) rank should also have high Style Scores for upside potential [8][9] Reinsurance Group of America (RGA) Analysis - RGA holds a Zacks Rank 2 (Buy) and a VGM Score of A, making it a strong candidate for investors [10] - The company has a Momentum Style Score of B, with shares up 5.2% over the past four weeks, and an average earnings surprise of 17.7% [10][11] - RGA is a global leader in life and health reinsurance and financial solutions, operating across multiple regions including the US, Latin America, Europe, and Asia [12]

Financial Data and Key Metrics - Adjusted operating earnings excluding notable items were $6 13 per share, a record quarter for the company [6] - Adjusted operating return on equity (ROE) excluding notable items was 15 5% over the past year, exceeding intermediate-term targets [6] - Pretax adjusted operating income was $314 million for the quarter, or $3 62 per share after tax, while excluding notable items, it was $508 million or $6 13 per share after tax [25] - The value of in-force business margins increased by $4 6 billion or 13 9% over the first nine months of 2024, reaching $37 6 billion [27][43] - Premiums grew by 3 2% for the quarter, with traditional business premiums up 8 5% for the quarter and 7 9% year-to-date on a constant currency basis [28][29] Business Line Performance - In Asia, the company saw favorable conditions, particularly in Korea, Mainland China, and Hong Kong, with exclusive transactions driving significant growth [9][10][11][12] - The U S Traditional business had a strong quarter, with over 20 new business wins, including a significant transaction with American National [15] - The Pension Risk Transfer (PRT) and longevity market in the U S and UK showed strong performance, with a robust pipeline and record new business in the UK [16] - The Asia asset-intensive business expanded in Korea, completing two coinsurance transactions, including one with a market leader for an asset size equivalent to approximately $500 million [17] Market Performance - In Asia, the company linked strategies, capabilities, and data across the region, tailoring and innovating for each market [14] - The U S market presented increasingly attractive opportunities, with strong premium growth of 6 7% for the quarter [29] - The UK market continued to perform well, with a market-leading digital underwriting system driving exclusive business wins [16] Strategic Direction and Industry Competition - The company focused on long-term shareholder value through optimizing new business activities and balance sheet management [7] - Exclusive and higher-value business, termed "creation business," has been the majority of new business embedded value for the past one to two years [8] - The company is actively exploring alternative capital sources, including the imminent completion of a capital raise for Ruby Re [21] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum, strategy, and execution, with a focus on sustaining future growth and diversifying capital sources [23] - The company expects to continue seeing attractive opportunities across geographies and business lines, with a strong pipeline for future growth [45] Other Important Information - The company initiated a transaction to recapture retroceded business, expected to generate $1 5 billion in long-term value and be accretive to ROE and PTAOI in 2025 and beyond [19] - The effective tax rate for the quarter was 23%, below the expected range, primarily due to income earned in non-U S jurisdictions [29] - The company completed the annual actuarial assumption review, resulting in a $58 million unfavorable impact to current period pretax adjusted operating income but a positive $100 million contribution to the value of in-force business margins [30] Q&A Session Summary Question: Excess Capital Redefinition - The company primarily uses capital for business growth, including potential opportunities on the asset side, such as private asset origination [47] Question: Growth Opportunity in Asia - The company leverages its strong local teams and biometric capabilities to adapt and create new products, which can be exported to other global markets [49][50] Question: Recapture Decision - The decision to recapture the in-force block was entirely the company's, driven by raising the retention limit and the block's profitability over the past 10 years [52] Question: Capital Backing for Recaptured Business - The recapture increases mortality exposure by 1% to 2%, with the excess capital figure already including the slight increase in risk capital [54] Question: Long-Term Care (LTC) Exposure - The company has modest LTC exposure, with $4 billion of reserves on the books, and will consider transactions if the risk aligns with its thresholds [59][60] Question: Mortality Assumptions - The company expects excess mortality to continue for four to five years, with modest reserve releases consistent with recent experience [62] Question: Balance Sheet Optimization - The company is in the early stages of portfolio optimization and in-force management actions, with significant opportunities remaining [74] Question: Ruby Re Economics - Ruby Re generates fee streams from origination, admin, and asset management, contributing to the company's earnings [78] Question: Japan Regulatory Environment - The company sees early-stage opportunities in Japan due to regulatory changes, with clients spreading transactions over several years [82][83] Question: U S Financial Solutions Performance - The U S Financial Solutions segment saw lower contributions from new business, but the PRT side performed well [85] Question: Recapture Volatility - The recapture adds minimal volatility, with 90% of the business in uncapped cohorts and low double-digit millions of volatility expected annually [88][89] Question: Excess Capital and Ratings - The company's excess capital view incorporates internal, regulatory, and rating agency perspectives, with third-party validation of the value of in-force business [95][96]

Revenue and Income - Net premiums for the three months ended September 30, 2024, were $4.391 billion, compared to $4.255 billion in the same period in 2023, representing a 3.2% increase[8] - Net investment income for the nine months ended September 30, 2024, was $3.231 billion, up from $2.635 billion in 2023, a 22.6% increase[8] - Total revenues for the nine months ended September 30, 2024, reached $16.866 billion, compared to $13.560 billion in 2023, a 24.4% increase[8] - Net income for the nine months ended September 30, 2024, was $574 million, down from $749 million in 2023, a 23.4% decrease[8] - Total comprehensive income for the nine months ended September 30, 2024, was $2.215 billion, compared to $1.287 billion in 2023, a 72.1% increase[10] - Net income for the nine months ended September 30, 2024, was $574 million, compared to $749 million in the same period in 2023[15] - Total other comprehensive income (loss) for the nine months ended September 30, 2024, was $1,641 million, compared to $538 million in the same period in 2023[13] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $7,770 million, compared to $2,818 million in the same period in 2023[15] - Net cash used in investing activities for the nine months ended September 30, 2024, was $8,383 million, compared to $2,592 million in the same period in 2023[15] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $2,864 million, compared to a net cash used of $271 million in the same period in 2023[15] - Basic earnings per share for the nine months ended September 30, 2024, was $8.64, compared to $11.19 in the same period in 2023[18] - Diluted earnings per share for the nine months ended September 30, 2024, was $8.53, compared to $11.06 in the same period in 2023[18] - Net investment income for the nine months ended September 30, 2024, was $3,231 million, up from $2,635 million in the same period in 2023[82] - Investment-related losses, net, were $498 million for the nine months ended September 30, 2024, compared to $326 million in the same period in 2023[83] - Fixed maturity securities available-for-sale generated $933 million in investment income for the three months ended September 30, 2024, up from $707 million in the same period in 2023[82] - Mortgage loans contributed $290 million to net investment income for the nine months ended September 30, 2024, compared to $238 million in the same period in 2023[82] - Net investment income for the period was $3 million, with investment-related gains (losses) net at $4 million[139] - Total gains/losses (realized/unrealized) for Level 3 assets and liabilities held at the end of the period were $3 million[139] - Interest credited included in other comprehensive income (loss) was $14 million[140] - Purchases during the period amounted to $680 million, while sales and settlements were $51 million and $282 million, respectively[140] - Net investment income increased due to a higher average asset base and interest rates, with average invested assets at amortized cost totaling $38.2 billion in 2024 compared to $35.9 billion in 2023[174] - The average yield on investments, excluding spread-related business, was 5.08% in Q3 2024, up from 4.72% in Q3 2023[174] - The company repositioned its portfolio, generating net capital losses of $41 million in Q3 2024 compared to $49 million in Q3 2023[174] - Net investment income rose by $31 million (15.9%) to $226 million for the three months ended September 30, 2024, compared to $195 million in 2023[182] - Net investment income increased by $52 million (82.5%) for the three months ended September 30, 2024, compared to the same period in 2023, due to higher investment yields[188] - Net investment income rose by $6 million (9.7%) for the three months and $9 million (4.9%) for the nine months ended September 30, 2024, due to an increase in the invested asset base[191][192] - Net investment income in Asia Pacific operations grew by $72 million (40.7%) for the three months ended September 30, 2024, due to higher yields and increased invested assets[203] Equity and Shareholder Returns - Total RGA, Inc. shareholders' equity as of September 30, 2024, was $11.127 billion, up from $8.063 billion in 2023, a 38.0% increase[12] - Dividends to shareholders for the nine months ended September 30, 2024, were $0.89 per share, compared to $0.85 per share in 2023[12] - Dividends to shareholders for the nine months ended September 30, 2024, were $171 million, compared to $163 million in the same period in 2023[13] - Total equity as of September 30, 2024, was $11,217 million, compared to $8,153 million as of September 30, 2023[13] - The company's board of directors authorized a share repurchase program for up to $500 million of its outstanding common stock, effective January 23, 2024[20] - Accumulated Other Comprehensive Income (AOCI) balance as of September 30, 2024, was $1,272 million, compared to $(1,333) million as of September 30, 2023[22] - Equity compensation expense for the nine months ended September 30, 2024, was $37 million, up from $35 million in the same period in 2023[25] - The company granted 106,233 stock appreciation rights, 116,883 performance shares, and 81,527 restricted stock units in Q1 2024, with a weighted average exercise price of $185.28 per share[25] - The total compensation cost of non-vested awards not yet recognized in financial statements was $44 million as of September 30, 2024, expected to vest over 0.8 years on average[25] Policy Benefits and Liabilities - The liability for future policy benefits increased by $39 million in 2024 and $85 million in 2023 due to updated mortality and lapse assumptions[26] - The company's liability for future policy benefits was updated in Q3 2024 and 2023, reflecting changes in mortality, lapse rates, and discount rate assumptions[26] - Present Value of Expected Net Premiums for the nine months ended September 30, 2024: U.S. and Latin America - $78.7 billion, Canada - $22.0 billion, Europe, Middle East and Africa - $16.8 billion, Asia Pacific - $45.8 billion[28] - Present Value of Expected Future Policy Benefits for the nine months ended September 30, 2024: U.S. and Latin America - $91.2 billion, Canada - $25.6 billion, Europe, Middle East and Africa - $18.4 billion, Asia Pacific - $50.7 billion[28] - Net Liability for Future Policy Benefits for the nine months ended September 30, 2024: U.S. and Latin America - $10.6 billion, Canada - $4.0 billion, Europe, Middle East and Africa - $1.2 billion, Asia Pacific - $2.7 billion[28] - Weighted Average Duration of the Liability: U.S. and Latin America - 14 years, Canada - 8 years, Europe, Middle East and Africa - 15 years, Asia Pacific - 15 years[28] - Weighted Average Interest Accretion Rate: U.S. and Latin America - 4.6%, Canada - 3.6%, Europe, Middle East and Africa - 3.3%, Asia Pacific - 2.6%[28] - Weighted Average Current Discount Rate: U.S. and Latin America - 5.1%, Canada - 4.8%, Europe, Middle East and Africa - 5.5%, Asia Pacific - 4.6%[28] - Present Value of Expected Net Premiums for the nine months ended September 30, 2023: U.S. and Latin America - $76.5 billion, Canada - $22.0 billion, Europe, Middle East and Africa - $14.6 billion, Asia Pacific - $41.0 billion[30] - Present Value of Expected Future Policy Benefits for the nine months ended September 30, 2023: U.S. and Latin America - $88.3 billion, Canada - $25.5 billion, Europe, Middle East and Africa - $16.0 billion, Asia Pacific - $45.5 billion[30] - Net Liability for Future Policy Benefits for the nine months ended September 30, 2023: U.S. and Latin America - $8.6 billion, Canada - $3.5 billion, Europe, Middle East and Africa - $1.0 billion, Asia Pacific - $2.2 billion[30] - Liability for Future Policy Benefits at Original Discount Rate for the nine months ended September 30, 2024: U.S. and Latin America - $12.5 billion, Canada - $3.6 billion, Europe, Middle East and Africa - $1.5 billion, Asia Pacific - $4.9 billion[32] - Liability for future policy benefits in the U.S. and Latin America – Traditional segment is $12.0 billion, with a $17 million change in cash flow assumptions and a $5 million actual-to-expected variance[33] - Canada – Traditional segment shows a liability of $3.4 billion, with a $12 million change in cash flow assumptions and a $5 million actual-to-expected variance[33] - Europe, Middle East, and Africa – Traditional segment has a liability of $1.3 billion, with a $47 million change in cash flow assumptions and a $9 million actual-to-expected variance[33] - Asia Pacific – Traditional segment reports a liability of $4.5 billion, with a $9 million change in cash flow assumptions and a $(49) million actual-to-expected variance[33] - The Financial Solutions business saw a $20 million increase in liability for future policy benefits in 2024 due to updated lapse and mortality assumptions[34] - Present Value of Expected Net Premiums for the U.S. and Latin America – Financial Solutions segment shows an ending balance of $1,206 million after a $(179) million effect of changes in discount rate assumptions[36] - Present Value of Expected Future Policy Benefits for the U.S. and Latin America – Financial Solutions segment has an ending balance of $9,268 million after a $(215) million effect of changes in discount rate assumptions[36] - Weighted average duration of the liability for the U.S. and Latin America – Financial Solutions segment is 8 years, with a weighted average interest accretion rate of 3.9% and a weighted average current discount rate of 4.9%[36] - Net liability for future policy benefits in the U.S. and Latin America – Financial Solutions segment is $6,853 million after subtracting reinsurance recoverable of $(1,241) million[36] - The Financial Solutions business updated its underlying market data, resulting in changes to the discount rate assumption used to measure the net liability for future policy benefits[34] - Present Value of Expected Net Premiums for U.S. and Latin America decreased by $69 million due to changes in cash flow assumptions[38] - Present Value of Expected Future Policy Benefits for Europe, Middle East, and Africa increased by $6,278 million due to issuances[38] - Liability for future policy benefits in U.S. and Latin America increased from $4.9 billion in 2023 to $8.1 billion in 2024[40] - Impact of updating discount rate recognized in OCI for Asia Pacific decreased by $540 million in 2023[40] - Total liability for future policy benefits increased from $36,474 million in 2023 to $55,933 million in 2024[41] - Weighted average duration of the liability for Asia Pacific is 15 years[38] - Weighted average interest accretion rate for Europe, Middle East, and Africa is 2.3%[38] - Weighted average current discount rate for Canada is 5.5%[38] - Financial Solutions segment in Asia Pacific saw a liability increase from $4,853 million in 2023 to $11,422 million in 2024[41] - Claims liability and incurred but not reported claims increased from $5,062 million in 2023 to $5,406 million in 2024[41] - Expected future gross premiums for U.S. and Latin America (Traditional) in 2024 are $182.731 billion, compared to $177.307 billion in 2023[43] - Expected future benefit payments for U.S. and Latin America (Traditional) in 2024 are $191.246 billion, compared to $188.177 billion in 2023[43] - Total policyholder account balances as of September 30, 2024, are $23.729 billion, compared to $23.166 billion in 2023[47] - Gross premiums for U.S. and Latin America (Traditional) in 2024 are $4.658 billion, compared to $4.435 billion in 2023[44] - Interest expense for U.S. and Latin America (Traditional) in 2024 is $432 million, compared to $404 million in 2023[44] - Policyholder account balances for U.S. and Latin America (Traditional) in 2024 are $3.318 billion, compared to $1.622 billion in 2023[47] - Weighted average crediting rate for U.S. and Latin America (Traditional) in 2024 is 3.1%, compared to 4.4% in 2023[46] - Net amount at risk for U.S. and Latin America (Traditional) in 2024 is $34.671 billion, compared to $664 million in 2023[46] - Cash surrender value for U.S. and Latin America (Traditional) in 2024 is $3.313 billion, compared to $1.608 billion in 2023[46] - Total gross premiums for all regions in 2024 are $12.442 billion, compared to $9.993 billion in 2023[44] - U.S. and Latin America – Financial Solutions total account value reached $16,366 million, with $8,827 million in the 4.00% and greater range[51] - Asia Pacific – Financial Solutions total account value was $3,969 million, with $1,814 million in the 4.00% and greater range[52] - U.S. and Latin America – Financial Solutions total balance for 2024 was $17,515 million, with $8,708 million in the 4.00% and greater range[53] - Asia Pacific – Financial Solutions total balance for 2024 was $3,978 million, with $882 million in the 4.00% and greater range[53] - Net balance for unpaid claims and claim expenses increased to $2,875 million as of September 30, 2024, up from $2,654 million in 2023[55] - Market risk benefits balance decreased to $233 million as of September 30, 2024, from $216 million in 2023[57] - Net amount at risk for market risk benefits was $1,285 million in 2024, compared to $1,375 million in 2023[57] - Total market risk benefits liability was $247 million in 2024, with a net impact of $(233) million[58] - No material changes were made to the inputs in the market risk benefits calculations during the nine months ended September 30, 2024 and 2023[59] - Deferred policy acquisition costs for the Traditional business increased to $2,967 million in the U.S. and Latin America, up from $2,160 million in 2023[61][64] - The Financial Solutions business saw deferred policy acquisition costs rise to $495 million in the U.S. and Latin America, compared to $309 million in 2023[62][64] - Total deferred policy acquisition costs across all segments reached $5,477 million in 2024, up from $4,289 million in 2023[64] - The company increased its per life retention limit to $8 million to $30 million, resulting in a future policy benefits remeasurement loss of $136 million in Q3 2024[65] - The company retroceded $390 million of asset-intensive business to Ruby Re, with a ceded reinsurance recoverable of approximately $2.7 billion as of September 30, 2024[65] - Two reinsurance companies, including Ruby Re, account for approximately 77.2% of reinsurance ceded receivables as of September 30, 2024[65] - Fixed maturity securities available-for-sale decreased slightly to $2,390 million in 2024 from $2,442 million in 2023[67] - Funds withheld at interest decreased to $1,486 million in 2024 from $1,545 million in 2023[67] - The company's funds withheld payable increased to $4,809 million in 2024 from $4,483 million in 2023[67] - The company's net assets decreased slightly to $4,468 million in 2024 from $4,534 million in 2023[67] - Corporate fixed maturity securities increased from $42,014 million in December 2023 to $53,327 million in September 2024, representing 65.4% of total fixed maturity securities[69] - The estimated fair value of Japanese government securities rose from $3,131 million in December 2023 to $5,270 million in September 2024[69][70] - Total fixed maturity securities grew from $64,977 million in December 2023 to $81,606 million in September 2024[69] - The allowance for credit losses on corporate securities increased from $62 million in December 2023 to $104 million in September 2024[69

1 3Q24 Earnings Presentation Reinsurance Group of America, Incorporated 10.31.2024 This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance, and growth potential of Reinsurance Group of America, Incorporated (the "Company"). Forward-looking statements ...

Earnings Performance - Reinsurance Group of America (RGA) reported Q3 2024 adjusted operating earnings of $6.13 per share, beating the Zacks Consensus Estimate by 19% and increasing 10% year over year [1] - Net foreign currency fluctuations positively impacted adjusted operating income by 2 cents per share [1] - Operating revenues of $5.7 billion exceeded the Zacks Consensus Estimate by 13.8% and grew 8.5% year over year, driven by higher net premiums [2] Segment Performance - U.S. and Latin America: Pre-tax adjusted operating income decreased 33.4% year over year to $159 million, with the Traditional segment down 23% and Financial Solutions down 41% [5] - Canada: Pre-tax adjusted operating income decreased 15% year over year to $34 million, with the Traditional segment surging three-fold to $30 million [6] - EMEA: Pre-tax adjusted operating income increased 38.7% year over year to $68 million, despite a pre-tax adjusted operating loss of $18 million in the Traditional segment [7][8] - Asia/Pacific: Pre-tax adjusted operating income decreased 60% year over year to $71 million, with the Traditional segment plunging 92% [9] - Corporate and Other: Pre-tax adjusted operating loss narrowed to $18 million from $25 million in the year-ago quarter [10] Financial Metrics - Net premiums rose 3.2% year over year to $4.4 billion, while investment income increased 28.8% to $1.2 billion [3] - Total benefits and expenses increased 14% year over year to $5.4 billion, driven by higher claims, policy benefits, and other expenses [4] - Assets grew 37.5% year over year to $120.2 billion as of Sept. 30, 2024 [11] - Book value per share increased 5% year over year to $149.63, while adjusted operating return on equity contracted 90 basis points to 13.8% [11] Capital Deployment - RGA deployed $382 million into in-force block transactions [12] - The board declared a quarterly dividend of 89 cents, payable on Nov. 26, 2024 [12] Industry Comparison - Chubb Limited reported Q3 2024 core operating income of $5.72 per share, beating estimates by 16% and increasing 15.6% year over year [14] - Kinsale Capital Group delivered Q3 2024 net operating earnings of $4.20 per share, exceeding estimates by 13.5% and growing 26.9% year over year [16] - Selective Insurance Group reported Q3 2024 operating income of $1.40 per share, missing estimates by 17.1% and decreasing 7% year over year [18]

Reinsurance Group (RGA) reported $5.73 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 8.5%. EPS of $6.13 for the same period compares to $5.57 a year ago.The reported revenue represents a surprise of +13.84% over the Zacks Consensus Estimate of $5.03 billion. With the consensus EPS estimate being $5.15, the EPS surprise was +19.03%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

Reinsurance Group (RGA) came out with quarterly earnings of $6.13 per share, beating the Zacks Consensus Estimate of $5.15 per share. This compares to earnings of $5.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.03%. A quarter ago, it was expected that this reinsurance company would post earnings of $4.94 per share when it actually produced earnings of $5.48, delivering a surprise of 10.93%.Over the last four quarters, ...

Analysts on Wall Street project that Reinsurance Group (RGA) will announce quarterly earnings of $5.15 per share in its forthcoming report, representing a decline of 7.5% year over year. Revenues are projected to reach $5.03 billion, declining 4.7% from the same quarter last year. The consensus EPS estimate for the quarter has undergone an upward revision of 0.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estima ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, inc ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [3] - Momentum Score capitalizes on existing price trends and earnings outlook [4] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [4] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors [5] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores for better selection [7] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [8] - Stocks with lower ranks, even if they have good Style Scores, may still face downward price pressure due to negative earnings forecasts [9] Company Spotlight: Reinsurance Group of America (RGA) - RGA is a leading global provider of life and health reinsurance, currently rated 2 (Buy) with a VGM Score of A [10] - The company is projected to have a year-over-year earnings growth of 9.7% for the current fiscal year, supported by upward revisions from analysts [11] - RGA's earnings consensus estimate has increased by $0.30 to $21.80 per share, with an average earnings surprise of 20.5% [11]