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Sydnee Gatewood
Sydnee Gatewood
Articles (2490) 

Bill Nygren Comments on Reinsurance Group of America

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July 09, 2020 | About:
Reinsurance Group of America (NYSE:RGA)

RGA primarily reinsures life insurance contracts. As the coronavirus spreads throughout the world, the companys share price collapsed to levels that, in our view, reflected a worst-case scenario. Our discussions with management, as well as our own scenario analysis, further buttressed our assessment, and we established a position at a price well below the companys tangible book value. RGA also maintains a conservative balance sheet, and we expect it will earn double-digit returns on tangible equity on average over time. We were excited to purchase this stock as it is trading for just a mid-single digit multiple of our estimate of normalized earnings per share.

From Bill Nygren (Trades, Portfolio)'s Oakmark Fund second-quarter 2020 shareholder commentary.

About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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