RGA Stock Trading at Discount to Industry at 1.21X: Time to Hold?

Core Viewpoint - Reinsurance Group of America (RGA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 1.21X, lower than the industry average of 1.9X and the S&P 500 composite's 7.82X [1] Group 1: Financial Performance - RGA has a market capitalization of $13.19 billion and an average trading volume of 0.5 million shares over the last three months [1] - RGA's shares have gained 14.1$22.60 billion, reflecting a 0.2% improvement [5] Group 2: Growth and Efficiency - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.3% in the trailing 12 months, significantly higher than the industry average of 0.6% [7] - The consensus estimates for 2025 earnings per share and revenues indicate increases of 7.2% and 7%, respectively, from the 2024 estimates [5] Group 3: Market Position and Strategy - RGA is a leader in the traditional U.S. and Latin American markets, with a strong product line and capabilities that contribute to stable earnings and capital generation [10] - In Canada, RGA is a market leader with a significant block of in-force business, which is a key source of future earnings [11] - The company is well-capitalized and plans to deploy capital in attractive growth opportunities while returning excess capital to shareholders [12][14] - RGA is ramping up technological inclusion in its products and has maintained a free cash flow conversion of over 85% in recent quarters [13] Group 4: Long-term Outlook - Factors such as new business volumes, favorable longevity experience, and effective capital deployment are expected to favor RGA in the long term [15] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [15]