UPDATE: Citigroup Initiates Reinsurance Group of America at Neutral on Near-Term Headwinds
Citigroup initiated coverage on Reinsurance Group of America, Incorporated (NYSE: 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.
Latest Ratings for RGA
|Jan 2017||Citigroup||Initiates Coverage On||Buy|
|Jan 2017||Goldman Sachs||Downgrades||Buy||Neutral|
|Oct 2016||Deutsche Bank||Downgrades||Buy||Hold|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.