Reinsurance Group of America: Attractive Despite Doubts About Capital Allocation
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Reinsurance Group of America (RGA) shares have fallen 15% due to mixed quarterly results and concerns over its growth strategy. The company is focusing on pension risk transfer deals, halting buybacks but maintaining dividends, aiming for a 13-15% ROE.

March 15, 2025 | 1:45 pm
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RGA shares have dropped 15% due to mixed quarterly results and concerns about its growth strategy. The company is focusing on pension risk transfer deals, halting buybacks but maintaining dividends, aiming for a 13-15% ROE.
The 15% drop in RGA's share price reflects investor concerns over mixed quarterly results and the profitability of its growth strategy. The shift to pension risk transfer deals and halting buybacks may be seen as a strategic pivot, but the market is cautious about short-term profitability. Maintaining dividends provides some stability, but the focus on long-term ROE targets suggests potential volatility.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100