UPDATE: Citigroup Initiates Reinsurance Group of America at Neutral on Near-Term Headwinds

Citigroup initiated coverage on Reinsurance Group of America, Incorporated RGA with a Neutral rating and a $60.00 price target. Citigroup commented, "Cautious U.S. growth outlook, but pricing environment remains favorable — Our model projects low-mid single digit premium growth in the U.S. as a result of tepid life insurance sales and the decline in cession rates (from >60% in the early 2000s to <30% currently). Most growth is coming from newer products such as group reinsurance and long-term care. While growth is challenging, returns remain healthy as industry consolidation has created a favorable pricing dynamic." Reinsurance Group of America closed at $54.52 on Wednesday.