Latest news with #RGA
Yahoo
a day ago
- Business
- Yahoo
Reinsurance Group Stock Plunges 11.1% YTD: How Should You Play?
Shares of Reinsurance Group of America RGA have lost 11.1% compared with the industry's decline of 2.5% in the year-to-date period. The Finance sector and the Zacks S&P 500 Composite have gained 10.6% and 9.5%, respectively, in the same time frame. The insurer has a market capitalization of $12.6 billion. The average volume of shares traded in the last three months was 0.4 million. RGA vs Industry, Sector & S&P 500 YTD Image Source: Zacks Investment Research RGA Shares are Affordable RGA shares are trading at a discount to the industry. Its price-to-book value of 1.03X is lower than the industry average of 1.66X. However, shares of other life insurers like SunLife Financial Inc. SLF and Primerica, Inc. PRI are trading at a multiple higher than the industry average, while Manulife Financial Corp. MFC shares are trading at a discount. Image Source: Zacks Investment Research Average Target Price for RGA Suggests Upside Based on short-term price targets offered by 11 analysts, the Zacks average price target is $239 per share. The average indicates a potential 28.3% upside from the last closing price. Image Source: Zacks Investment Research Projections for RGA The Zacks Consensus Estimate for 2025 revenues is pegged at $23.4 billion, implying a year-over-year improvement of 2.5%. The consensus estimate for RGA's current-year earnings is pegged at $22.73 per share, up 0.7% from the year-ago reported figure. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 9.8% and 12.5%, respectively, from 2025 estimates. Bearish Analyst Sentiment on RGA Analysts covering the stock have lowered their estimates for 2025 and 2026 over the past 30 days. The Zacks Consensus Estimate for 2025 and 2026 earnings has moved down 1.5% and 0.5% in the past 30 days. Image Source: Zacks Investment Research Key Points to Note for RGA Reinsurance Group leads the U.S. and Latin American traditional reinsurance markets, using its expertise, innovation, and capabilities to broaden its portfolio. A mature individual mortality segment anchors stable earnings and capital generation, while the sizable in-force block is poised to deliver predictable long-term income. Ongoing product expansion further strengthens risk diversification. Reinsurance Group leads Canada's reinsurance market with strong growth and profitability. Its sizable in-force business supports steady earnings, while growing demand for longevity insurance offers expansion potential and hedges mortality risk. The company's net investment income has steadily improved, registering a 17.2% CAGR from 2016–2024, driven by a larger invested asset base, higher risk-free rates, and stronger yields from alternative and private assets. In the second quarter, investment income (net of expenses) jumped 30.1% year over year to $1.4 billion, while the average yield climbed 66 basis points to 5.3%. Reinsurance Group benefits from a sizable in-force business that provides steady earnings and has seen long-term growth in net investment income. However, rising expenses from higher claims, interest credited, operating costs, and interest expense could pressure margins. Debt has also increased, with long-term debt up 13.7% since 2024-end to $5.73 billion, pushing the total debt-to-capital ratio 50 bps higher to 32.1. Profitability has softened, with second-quarter 2025 adjusted operating ROE (ex-AOCI) down 100 bps to 14.3% and trailing 12-month ROE falling 320 bps year over year to 12.6%. Conclusion Overall, Reinsurance Group's leadership across key markets, diversified offerings, and consistent investment income growth provide a strong earnings base and long-term growth potential. However, the benefits are tempered by sustained expense pressures, a rising debt burden, and declining returns, underscoring the need for disciplined cost control and capital management to maintain profitability in the coming periods. Given the bearish analysts' sentiment and price erosion, we prefer to remain cautious on this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Manulife Financial Corp (MFC) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report Sun Life Financial Inc. (SLF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
AllianceBernstein's July AUM Remain Stable on Upbeat Markets
AllianceBernstein Holding L.P. AB has announced assets under management (AUM) for July 2025. The company's preliminary month-end AUM remained unchanged at $829 billion compared with June 2025-end. The flat figure was due to market gains being offset by net outflows during the month. These outflows were primarily from institutions, with approximately $4 billion linked to the completion of the EQH-RGA reinsurance transaction. AB's July Performance Breakdown At the end of July, AllianceBernstein's Equity AUM rose nearly 1% to $347 billion on a sequential basis. Alternatives/Multi-Asset Solutions AUM (including certain multi-asset services and solutions) was up 1.1% to $183 billion. Fixed Income AUM of $299 billion was down 1.6% from the end of July 2025. In terms of channel, the July month-end Institutions' AUM of $337 billion dipped nearly 1% from the previous month. Private Wealth AUM increased 1.4% sequentially to $146 billion. Retail AUM was $346 billion, up slightly from June-end. AllianceBernstein's global reach and solid AUM balance are likely to aid top-line growth. However, rising operating costs and a challenging operating backdrop are near-term concerns. AB's Price Performance and Zacks Rank In the past six months, shares of AB have gained 10.6% outperforming the industry's growth of 1.7%. Image Source: Zacks Investment Research Currently, AB sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Performance of AB's Peers Franklin Resources, Inc. BEN reported its preliminary AUM of $1.62 trillion as of July 31, 2025, which increased slightly from the prior month. The increase in BEN's AUM balance was due to the positive impact of markets and flat preliminary long-term net inflows, inclusive of $3 billion of long-term net outflows at Western Asset Management. Invesco IVZ also released its preliminary AUM for July 2025. The company's AUM of $2,024.5 billion as of July 31, 2025, increased 1.2% from the previous month. IVZ's AUM was impacted by favorable market returns, resulting in a $22 billion increase in the metric. However, FX decreased the AUM balance by $8.5 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Zawya
5 days ago
- Automotive
- Zawya
Saudi roads sector adopts smart solutions for safer, greener highways
Saudi Arabia's roads sector is undergoing significant development, with the Roads General Authority introducing several innovations to create a safer, more sustainable, and efficient logistics network. These advancements are aimed at strengthening the kingdom's position as a global logistics hub. As part of a broader strategy to improve road quality and enhance safety, the RGA is implementing pioneering efforts across the kingdom's extensive 73,000-km road network - the most interconnected in the world - to empower vital sectors and sustain economic growth. Among the key innovations is the use of a roller-compacted concrete layer for truck lanes, a first for the kingdom, said a statement from RGA. This durable material is a strategic solution for heavy traffic loads, providing superior strength and resisting deformation caused by large trucks, it stated. In a commitment to environmental sustainability and the circular economy, the Authority is also using recycled building demolition waste in its asphalt mixes. This initiative aims to reduce reliance on natural raw materials and convert waste into valuable construction materials, with a target to recycle 60% of such waste, said the statement. The RGA has introduced several innovations to improve public spaces and urban environments. Flexible rubber asphalt, made from recycled tires, is being used for pedestrian paths and public parks. This material provides a more comfortable surface for walking and running, while also helping to reduce pollution from tire waste, it stated. According to RGA, another notable innovation is road cooling technology, which uses locally manufactured materials that reflect sunlight. This technology can lower road surface temperatures by an average of 12 to 15 degrees Celsius, creating a more comfortable environment for pedestrians and mitigating the urban heat island effect, it added.- TradeArabia News Service Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Globe and Mail
06-08-2025
- Business
- Globe and Mail
Equitable (EQH) Q2 EPS Drops 23%
Key Points Non-GAAP operating earnings per share for Q2 2025 exceeded analysts' expectations, but Headline revenue and non-GAAP earnings declined significantly from the prior year. A transformative life reinsurance deal with RGA was completed on July 31, 2025, reducing mortality risk and freeing up over $2 billion in capital for redeployment. The Asset Management segment posted higher assets under management in Q2 2025, but faced sharp client outflows of $4.8 billion during the period. These 10 stocks could mint the next wave of millionaires › Equitable (NYSE:EQH), a diversified provider of insurance, retirement, asset management, and financial planning services, reported its Q2 2025 earnings on August 5, 2025. The headline news from the release was a mixed performance: adjusted non-GAAP earnings per share (EPS) for Q2 2025 exceeded analyst expectations at $1.41 versus the $1.28 estimate, while actual reported revenue (non-GAAP operating earnings) fell short of consensus by a significant margin. Compared to Q2 2024, both reported revenue and EPS declined sharply, with reported revenue declining by nearly one-third year-over-year and non-GAAP EPS dropping 23% year-over-year. The completion of a major life reinsurance deal with RGA on July 31, 2025, marked a strategic milestone, significantly reducing risk from mortality volatility and bolstering Equitable's capital flexibility. The quarter reflected continued strength in retirement and wealth management, offset by asset management outflows and Protection Solutions volatility. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Equitable's Business Model and Recent Focuses Equitable operates across three main business lines: retirement, asset management, and affiliated distribution. The company is organized into six segments including Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management, and Legacy blocks. This structure helps spread risk and capture earnings opportunities across a range of financial services. Recent company strategy has emphasized diversifying its earnings sources, growing its extensive distribution network, and managing risk through both hedging and reinsurance. Key success factors include increasing assets under administration, attracting net inflows across wealth and retirement products, and protecting the balance sheet with strong capital levels. Regulatory compliance and risk management remain ongoing priorities as product complexity and market dynamics evolve. Quarter in Review: Milestones, Segment Performance, and Capital Initiatives This quarter, the most notable achievement was the closing of a significant individual life reinsurance deal with RGA. The transaction, closed on July 31, 2025, reduced Equitable's mortality risk exposure by 75% and unlocked over $2 billion of value. The company's combined NAIC risk-based capital (RBC) ratio was greater than 500% on a pro-forma basis following the individual life transaction and planned dividends to Holdings. Equitable plans to use the freed capital from the RGA life reinsurance transaction for share buybacks, debt reduction, and to reinforce its core retirement and asset management businesses. Management confirmed $1.7 billion in subsidiary dividends are planned for the second half of 2025 to further support corporate liquidity. In the Retirement segment, Individual Retirement posted sustained net inflows of $1.7 billion, with first-year premiums up by 7%. The Group Retirement business also stayed positive, though inflows slowed, reflecting ongoing demand in institutional accounts. Wealth Management continued to expand, with advisory net inflows of $2.0 billion and a 16% jump in assets under administration to $110 billion. Advisor productivity in this area rose 8% year-over-year. Asset Management, driven largely by AllianceBernstein's investment services, ended the quarter with $829.1 billion in assets under management (AUM), up 8% year-over-year. However, this growth stemmed from rising market values, as the segment saw significant net outflows totaling $6.7 billion, including $4.8 billion in retail outflows. Management linked these outflows primarily to April's market volatility. Operating earnings for Asset Management improved to $131 million from $101 million, supported by higher base fees and increased Equitable ownership in AllianceBernstein. The Protection Solutions segment recorded a substantial operating loss, swinging from $72 million in operating earnings in Q2 2024 to a $58 million operating loss. This decline was mainly due to elevated mortality claims, including late-reported claims tied to a third-party administrator. These 'notable items' contributed $74 million to overall after-tax adjustments and highlight the importance of risk mitigation through reinsurance and process improvement efforts moving forward. Company-wide, Equitable returned $318 million to shareholders, including $236 million in share repurchases, exceeding its 60–70% payout target range. Corporate liquidity at the holding company stood at $0.8 billion as of June 30, 2025, comfortably above its internal target of $0.5 billion. Products and Developments: Elevating Retirement, Wealth, and Asset Management Its 'all-weather' portfolio approach continues to attract clients looking for combination products that balance income and growth potential. In Individual Retirement, it is showing growth in accumulation-oriented life products. Employee Benefits within Protection Solutions also grew, with first-year premiums up 7% year-over-year, despite segment earnings volatility. Asset Management made further advances in private market investments and insurance asset management, utilizing $15 billion of a targeted $20 billion private markets commitment to AllianceBernstein. This deepens Equitable's diversification and offers new fee-based growth sources. Wealth Management achieved record advisory assets of $110 billion. benefiting from improved advisor productivity (up 8% year-over-year) and increased client flows. Outlook and Priorities Looking ahead, Equitable's management reaffirmed confidence in its multi-year targets. These include an aim for $2 billion in annual cash generation, 12–15% compound annual earnings growth, and a 60–70% payout ratio through fiscal 2027. Management noted that growth and earnings acceleration in the second half of fiscal 2025 are expected, contingent on normalized capital markets and reduced mortality volatility post-reinsurance. No further formal guidance figures were provided for fiscal-year revenue or EPS beyond these broad 2027 financial goals. Future priorities for investors to monitor include the trend in net flows within the Asset Management segment, especially if current outflows persist, as well as any shifts in the pace of retirement and wealth management asset growth. Watch for any lasting impact from one-off claims or notable items, as well as the company's ongoing capital deployment strategy in buybacks and dividends. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Yahoo
01-08-2025
- Business
- Yahoo
Reinsurance Group (RGA) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Reinsurance Group (RGA) reported $5.64 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 9.6%. EPS of $4.72 for the same period compares to $5.48 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.71 billion, representing a surprise of -1.09%. The company delivered an EPS surprise of -15.41%, with the consensus EPS estimate being $5.58. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Reinsurance Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net premiums- U.S. and Latin America- Traditional: $2.02 billion versus $1.95 billion estimated by two analysts on average. Other Revenues- Corporate and Other: $18 million versus the two-analyst average estimate of $11.5 million. Other Revenues- U.S. and Latin America- Traditional: $4 million compared to the $9.75 million average estimate based on two analysts. Net premiums- U.S. and Latin America- Financial Solutions: $-5 million versus the two-analyst average estimate of $245.13 million. Net investment income- U.S. and Latin America- Financial Solutions: $371 million versus the two-analyst average estimate of $348.21 million. Other Revenues- U.S. and Latin America- Financial Solutions: $53 million compared to the $53.75 million average estimate based on two analysts. Net premiums- Canada Traditional: $339 million compared to the $339.83 million average estimate based on two analysts. Net investment income- Canada Traditional: $66 million versus $65.39 million estimated by two analysts on average. Net investment income: $1.41 billion versus the five-analyst average estimate of $1.22 billion. Revenues- Net premiums: $4.15 billion compared to the $4.32 billion average estimate based on five analysts. The reported number represents a change of +5.9% year over year. Revenues- Other revenues: $84 million versus the five-analyst average estimate of $109.95 million. The reported number represents a year-over-year change of -42.9%. Revenues- Investment related gains (losses), net: $-44 million compared to the $10.65 million average estimate based on four analysts. View all Key Company Metrics for Reinsurance Group here>>> Shares of Reinsurance Group have returned -2.9% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
