Reinsurance Group of America, Incorporated (NYSE:RGA) Plans $0.93 Quarterly Dividend

Key Points

• RGA declared a quarterly dividend of $0.93 per share (ex‑dividend/record date May 19, payable June 2), which annualizes to $3.72 and yields about 1.7%.
• The dividend appears well covered: RGA has increased its payout for 16 consecutive years, carries a payout ratio around 14.6%, and analysts project ~$28.44 EPS next year (implying a ~13.1% future payout ratio).
• RGA beat quarterly expectations with EPS of $6.97 (vs. $6.03 est.) and revenue up 23.5% YoY; the stock trades near $213 with a P/E of ~12 and institutional investors own about 95%** of shares, following large new stakes by firms like AQR and Norges Bank.

Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Investors of record on Tuesday, May 19th will be paid a dividend of 0.93 per share by the insurance provider on Tuesday, June 2nd. This represents a c) dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, May 19th.

Reinsurance Group of America has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 16 consecutive years. Reinsurance Group of America has a dividend payout ratio of 14.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Reinsurance Group of America to earn $28.44 per share next year, which means the company should continue to be able to cover its $3.72 annual dividend with an expected future payout ratio of 13.1%.

Reinsurance Group of America Stock Performance

Shares of RGA opened at $213.04 on Friday. The stock has a 50 day moving average price of $207.78 and a 200 day moving average price of $202.17. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $13.96 billion, a price-to-earnings ratio of 12.00 and a beta of 0.50. Reinsurance Group of America has a 52-week low of $165.52 and a 52-week high of $229.21.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The insurance provider reported $6.97 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.03 by $0.94. The firm had revenue of $6.49 billion during the quarter, compared to the consensus estimate of $6.47 billion. Reinsurance Group of America had a return on equity of 12.99% and a net margin of 4.99%.The firm's quarterly revenue was up 23.5% compared to the same quarter last year. During the same period in the prior year, the company posted $5.66 earnings per share. Research analysts predict that Reinsurance Group of America will post 26.27 EPS for the current fiscal year.

Institutional Investors Weigh In On Reinsurance Group of America

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its stake in shares of Reinsurance Group of America by 148.4% during the fourth quarter. AQR Capital Management LLC now owns 1,652,102 shares of the insurance provider's stock worth $336,137,000 after purchasing an additional 987,014 shares during the last quarter. Norges Bank purchased a new stake in shares of Reinsurance Group of America during the fourth quarter worth approximately $173,767,000. Orion Porfolio Solutions LLC increased its position in shares of Reinsurance Group of America by 6,076.4% in the second quarter. Orion Porfolio Solutions LLC now owns 602,503 shares of the insurance provider's stock valued at $119,512,000 after buying an additional 592,748 shares in the last quarter. SEB Asset Management AB purchased a new position in shares of Reinsurance Group of America in the first quarter valued at $81,533,000. Finally, Adage Capital Partners GP L.L.C. purchased a new position in shares of Reinsurance Group of America in the second quarter valued at $69,426,000. Hedge funds and other institutional investors own 95.11% of the company's stock.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.

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