Sterne Agee Maintains Reinsurance Group of America $68 PT (RGA)

Sterne Agee maintained its Reinsurance Group of America

$68 price target and its 2011/2012 EPS estimates of $7.20 and $7.99 respectively in a research report published today. In the report, Sterne Agee states, "RGA reported operating EPS of $2.15, well ahead of our $1.89 and FC $1.85. Our estimates and reported results benefited about $0.20 from a lower tax rate. Results also benefited from about a $0.03 favorable item in Asset Intensive and $0.01 of positive Fx. On an apples-to-apples basis, results beat us by $0.22, or 11.5%, driven by favorable mortality results across most segments (+$0.30) and better Corporate results (+$0.02) with partial offset from weak underwriting results in Asia/Pacific (-$0.12). Given favorable mortality in 4Q10, management indicated underwriting results for the full year were “in line with expectations on a consolidated basis” making up for relatively poor mortality results in 1Q10." Shares of Reinsurance Group of America were trading at $59.23 at the time of posting, up 2.90% from Monday's market close.