8 Undervalued Insurance Stocks To Invest In

6. Reinsurance Group of America Incorporated (NYSE:RGA)

Forward P/E: 8.85

Earnings Growth: 11.00%

Number of Hedge Fund Holders: 40

Reinsurance Group of America, Incorporated (NYSE:RGA) is a holding company that ranks among the best insurance stocks to buy. It specializes in life and health reinsurance, operating in over 100 countries. The company helps clients manage risk and optimize capital through various reinsurance products, including term life, disability, and long-term care. As of December 31, 2023, RGA had $3.7 trillion in life reinsurance in force.

In its Q2 2024 earnings call, RGA’s management noted impressive growth in its Longevity and Pension Risk Transfer (PRT) business. Reinsurance Group of America, Incorporated (NYSE:RGA) completed major transactions in both the US and the UK, including a noteworthy longevity deal in Japan and its largest PRT transaction in the US.

The company is also focused on innovation, recently launching a digital underwriting solution designed to streamline the insurance purchasing process for Mainland Chinese visitors in Hong Kong. This initiative demonstrates RGA’s commitment to developing comprehensive products that support client growth.

For Q2 2024, Reinsurance Group of America, Incorporated (NYSE:RGA) reported pre-tax adjusted operating income of $491 million and adjusted earnings per share of $5.48. The company achieved a 17.5% increase in consolidated net premiums, totaling $3.9 billion in Q2 2024. This growth included $282 million from a single premium PRT transaction in the US.

On August 27, 2024, RGA announced a partnership with American National Insurance Company to reinsure approximately $3.5 billion of life business through a coinsurance arrangement. This deal strengthens the reputation of Reinsurance Group of America, Incorporated (NYSE:RGA) as a reliable partner in the reinsurance market.

RGA stock is undervalued with a forward P/E ratio of 8.85. Analysts expect Reinsurance Group of America, Incorporated (NYSE:RGA) to grow its earnings by 11% in the current year.

Analysts are also bullish on RGA. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $246.50 set by analysts indicates a potential upside of 17% from current levels.

According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 40 hedge funds held stakes in Reinsurance Group of America, Incorporated (NYSE:RGA).