Latest news with #Reinsurance
Yahoo
26-05-2025
- Business
- Yahoo
Raymond James Financial Downgrades Reinsurance Group of America (RGA) Stock
On May 23, Raymond James Financial downgraded Reinsurance Group of America, Incorporated (NYSE:RGA)'s stock from 'Strong Buy' to 'Market Perform' and reiterated its price target of $202.89. The change in the rating comes as a result of worries related to increased competition and market challenges encountered by the company. An individual signing the dotted line for a life insurance policy. The firm believes that Reinsurance Group of America, Incorporated (NYSE:RGA), which offers reinsurance and financial solutions, continues to face increased competition for in-force blocks and pension risk transfers (PRTs), impacting the outlook on the company's stock. Furthermore, the firm also expressed its concerns related to the temporary pause in the US jumbo pension risk transfer market and diminishing returns on the UK buy-in PRTs. Collectively, such factors have been contributing to the less optimistic view of Reinsurance Group of America, Incorporated (NYSE:RGA)'s future earnings potential. However, the company's Q1 2025 results were strong, and its traditional business performed particularly well, with its biometric claims experience remaining favorable across all the geographic segments. While there are macro uncertainties, Reinsurance Group of America, Incorporated (NYSE:RGA) expects an attractive pipeline for organic new business and in-force transactions, with a healthy balance between them. In Q1 2025, the company's consolidated net premiums came in at $4.0 billion, reflecting a decline of 25% YoY, with an adverse net foreign currency effect to the tune of $60 million. While we acknowledge the potential of RGA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RGA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
Associated Press
22-05-2025
- Business
- Associated Press
AM Best Assigns Credit Ratings to Berkeley Re Designated Activity Company
AMSTERDAM--(BUSINESS WIRE)--May 22, 2025-- AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of 'bbb+' (Good) to Berkeley Re Designated Activity Company (Berkeley Re) (Ireland). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Berkeley Re's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Berkeley Re is the captive reinsurer for Mondelez International, Inc. (Mondelez), a global confectionary, food and beverage company based in the United States. Berkeley Re's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The company benefits from a liquid investment portfolio and low reinsurance dependence. A partly offsetting factor in the assessment is the company's exposure to large losses within its property line of business. The risks associated with this exposure are mitigated partly by a deed of commitment granted by the immediate parent company. The adequate operating performance assessment reflects the Berkeley Re's track record of good, but volatile, underwriting results, as demonstrated by a five-year average combined ratio of 67.6% (2020-2024), as calculated by AM Best. Prospectively, performance is expected to be positive in most years but remains subject to volatility due to Berkeley Re's exposure to potentially large property losses. Berkeley Re is a captive composite reinsurer that mainly underwrites property damage and business interruption and employee related risks. Berkeley Re's underwriting portfolio is well-diversified by line of business as well as geographically. AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best'sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please viewGuide to Proper Use of Best's Ratings & © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on CONTACT: Valentine Gu, AAG Associate Financial Analyst +31 20 308 5421 [email protected] Sanchez Director, Analytics +31 20 808 3190 [email protected] Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] KEYWORD: NETHERLANDS EUROPE INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES SOURCE: AM Best Copyright Business Wire 2025. PUB: 05/22/2025 09:13 AM/DISC: 05/22/2025 09:12 AM
