UPDATE: Keefe, Bruyette & Woods Assumes Coverage on Reinsurance Group of America with Market Perform Rating, $83 PT Following Disappointing 1Q Results

In a report published Monday, Keefe, Bruyette & Woods analyst Ryan Krueger assumed coverage on

with a Market Perform rating and $83.00 price target. In the report, Keefe, Bruyette & Woods noted, “We are assuming coverage of RGA with a Market Perform rating and $83 price target. The company reported disappointing 1Q results and we expect the stock to be weak in reaction. RGA's earnings are prone to quarterly volatility, with generally more predictable annual results. While we like the company's lower risk mortality focus, we are concerned about rising levels of competition in the life reinsurance market, potentially lowering new business returns and/or growth. With an ROE expectation in the 10.5-11.0% range, we value the shares at 1.1x book or $83, and rate the stock Market Perform.” Reinsurance Group of America closed on Friday at $79.19.