Technical Analysis:
Based on recent price action, RGA shows a strong upward momentum after the announcement of a significant reinsurance transaction with Equitable Holdings.
The stock has risen 6.5% to $201.79 following the reinsurance transaction announcement. Key technical levels show:
- Support: $200.55
- Current price: $202.69
- Resistance: $214.21
News Impact Analysis:
- Major Reinsurance Deal:
- RGA to reinsure $32 billion of Equitable's life insurance products
- Expected deployment of $1.5 billion capital
- Transaction to contribute:
- $70 million to adjusted operating income (2025)
- $160-170 million (2026)
- ~$200 million annually thereafter
- Debt Offering:
- Priced $700M in 6.650% subordinated debentures
- Due 2055, issue price 100%
- Expected completion: March 3, 2025
- Credit Rating Update:
- Moody's affirmed ratings but revised outlook to negative
- Concerns over capital adequacy following the Equitable deal
Price Forecast (Next Week):
Based on technical indicators and recent developments:
- Short-term target: $214-215 range
- Expected support level: $200.55
- Volatility range: 2.60% daily average
Recommendation: BUY
Rationale:
- Strong fundamental catalyst with Equitable deal
- Clear earnings visibility for next several years
- Technical momentum remains positive
- However, maintain stop-loss at $198 (below short-term moving average support)
Technical Analysis:
Based on recent price action, RGA shows a strong upward momentum after the announcement of a significant reinsurance transaction with Equitable Holdings.
The stock has risen 6.5% to $201.79 following the reinsurance transaction announcement. Key technical levels show:
- Support: $200.55
- Current price: $202.69
- Resistance: $214.21
News Impact Analysis:
- Major Reinsurance Deal:
- RGA to reinsure $32 billion of Equitable's life insurance products
- Expected deployment of $1.5 billion capital
- Transaction to contribute:
- $70 million to adjusted operating income (2025)
- $160-170 million (2026)
- ~$200 million annually thereafter
- Debt Offering:
- Priced $700M in 6.650% subordinated debentures
- Due 2055, issue price 100%
- Expected completion: March 3, 2025
- Credit Rating Update:
- Moody's affirmed ratings but revised outlook to negative
- Concerns over capital adequacy following the Equitable deal
Price Forecast (Next Week):
Based on technical indicators and recent developments:
- Short-term target: $214-215 range
- Expected support level: $200.55
- Volatility range: 2.60% daily average
Recommendation: BUY
Rationale:
- Strong fundamental catalyst with Equitable deal
- Clear earnings visibility for next several years
- Technical momentum remains positive
- However, maintain stop-loss at $198 (below short-term moving average support)