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If You Invested $1000 in Reinsurance Group a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Reinsurance Group (RGA - Free Report) ten years ago? It may not have been easy to hold on to RGA for all that time, but if you did, how much would your investment be worth today?
Reinsurance Group's Business In-Depth
With that in mind, let's take a look at Reinsurance Group's main business drivers.
Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
Its Traditional reinsurance includes individual and group life and health, disability, and critical illness reinsurance. Life reinsurance primarily refers to reinsurance of individual or group-issued term, whole life, universal life, and joint and last survivor insurance policies. Health and disability reinsurance primarily refers to reinsurance of individual or group health policies. Critical illness reinsurance provides a benefit in the event of the diagnosis of a pre-defined critical illness. Its Financial solutions include longevity reinsurance, asset-intensive reinsurance, financial reinsurance and stable value products.
Reinsurance Group reports through four geographic segments:
U.S. and Latin America (54.8% of 2023 Net Premiums) – Segmented into traditional and non-traditional businesses, namely individual life, long-term care, group life and health reinsurance, annuity and financial reinsurance products. The non-traditional business also issues fee-based synthetic guaranteed investment contracts such as investment-only, stable-value contracts, to retirement plans.
Canada Operations (9.5%) – Reinsures traditional life products and creditor reinsurance, group life and health reinsurance, non-guaranteed critical illness products, and longevity reinsurance.
Europe, Middle East and Africa (13.9%) – Includes a variety of life and health products, critical illness and longevity business throughout Europe and in South Africa, in addition to other markets.
Asia Pacific (21.8%) – Includes life, critical illness, health, disability, superannuation and financial reinsurance.
Corporate and Other – Includes results from, among others, RGA Technology Partners, Inc., a wholly owned subsidiary that develops and markets technology solutions for the insurance industry, interest expense related to debt and investment income and expense associated with the company’s collateral finance facility.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Reinsurance Group ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $2,782.04, or a 178.20% gain, as of July 31, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.95% and the price of gold increased 80.34% over the same time frame in comparison.
Going forward, analysts are expecting more upside for RGA.
Reinsurance Group steadily benefits from a mix of organic and transactional opportunities. Its niche position in reinsurance markets and expansion of international footprint are positives. Individual mortality has matured and provides a base for stable earnings. Significant value embedded in in-force business should generate predictable long-term earnings. The company is poised to benefit from improving life reinsurance pricing environment and higher investment income. Reinsurance Group beat earnings estimates by 33.5% in the first quarter. A solid solvency position reflects its ability to make interest payments. Shares of Reinsurance Group have outperformed the industry over the past year. However, higher expenses continue to weigh on margins. Foreign exchange volatility affected the quarterly results. High leverage ratio poses financial risk.
The stock has jumped 9.70% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024; the consensus estimate has moved up as well.
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If You Invested $1000 in Reinsurance Group a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Reinsurance Group (RGA - Free Report) ten years ago? It may not have been easy to hold on to RGA for all that time, but if you did, how much would your investment be worth today?
Reinsurance Group's Business In-Depth
With that in mind, let's take a look at Reinsurance Group's main business drivers.
Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.
Its Traditional reinsurance includes individual and group life and health, disability, and critical illness reinsurance. Life reinsurance primarily refers to reinsurance of individual or group-issued term, whole life, universal life, and joint and last survivor insurance policies. Health and disability reinsurance primarily refers to reinsurance of individual or group health policies. Critical illness reinsurance provides a benefit in the event of the diagnosis of a pre-defined critical illness. Its Financial solutions include longevity reinsurance, asset-intensive reinsurance, financial reinsurance and stable value products.
Reinsurance Group reports through four geographic segments:
U.S. and Latin America (54.8% of 2023 Net Premiums) – Segmented into traditional and non-traditional businesses, namely individual life, long-term care, group life and health reinsurance, annuity and financial reinsurance products. The non-traditional business also issues fee-based synthetic guaranteed investment contracts such as investment-only, stable-value contracts, to retirement plans.
Canada Operations (9.5%) – Reinsures traditional life products and creditor reinsurance, group life and health reinsurance, non-guaranteed critical illness products, and longevity reinsurance.
Europe, Middle East and Africa (13.9%) – Includes a variety of life and health products, critical illness and longevity business throughout Europe and in South Africa, in addition to other markets.
Asia Pacific (21.8%) – Includes life, critical illness, health, disability, superannuation and financial reinsurance.
Corporate and Other – Includes results from, among others, RGA Technology Partners, Inc., a wholly owned subsidiary that develops and markets technology solutions for the insurance industry, interest expense related to debt and investment income and expense associated with the company’s collateral finance facility.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Reinsurance Group ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $2,782.04, or a 178.20% gain, as of July 31, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.95% and the price of gold increased 80.34% over the same time frame in comparison.
Going forward, analysts are expecting more upside for RGA.
Reinsurance Group steadily benefits from a mix of organic and transactional opportunities. Its niche position in reinsurance markets and expansion of international footprint are positives. Individual mortality has matured and provides a base for stable earnings. Significant value embedded in in-force business should generate predictable long-term earnings. The company is poised to benefit from improving life reinsurance pricing environment and higher investment income. Reinsurance Group beat earnings estimates by 33.5% in the first quarter. A solid solvency position reflects its ability to make interest payments. Shares of Reinsurance Group have outperformed the industry over the past year. However, higher expenses continue to weigh on margins. Foreign exchange volatility affected the quarterly results. High leverage ratio poses financial risk.
The stock has jumped 9.70% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024; the consensus estimate has moved up as well.