RGA - Here's How Reinsurance Group of America Is Beating the Bear Market
Since the beginning of 2022, the stock market has posted lackluster results, with the S&P 500 down 15% while the tech-heavy Nasdaq Composite index lost 26%. Despite this, Reinsurance Group of America (NYSE: RGA) has held up quite well, with the stock gaining 33% during the same period.
Insurance companies have generally outperformed this past year because of their ability to adjust to inflation and take advantage of rising interest rates. Reinsurance Group of America has benefited from other tailwinds, too, including falling costs from pandemic-related claims. Here's why the stock is beating the bear market -- and a look at whether the outperformance can continue.
Reinsurance Group of America provides reinsurance coverage for life and health insurers globally. Reinsurance is insurance bought by insurers that can protect them from experiencing catastrophic losses from unexpected events. Insurers use it to cap the downside risk on their policies in the event of an extreme event. Reinsurance can be lucrative because insurers rarely see losses balloon to such extreme levels.
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Here's How Reinsurance Group of America Is Beating the Bear Market