Ballentine Partners LLC has reduced its position in Reinsurance Group of America, Incorporated (NYSE: RGA), cutting its holdings by 16.9% in the second quarter, according to a recent filing with the Securities and Exchange Commission. The wealth management firm sold 346 shares during the period, leaving it with 1,700 shares valued at approximately US$337,000 at the quarter’s close.
The move comes as institutional investors continue to adjust their exposure to the global life and health reinsurer. While Ballentine Partners reduced its stake, other major investors—including WCM Investment Management, American Century Companies, and AllianceBernstein—have increased their positions in RGA in recent months.
RGA shares opened at US$191.05 on Monday, trading in the upper half of their 52-week range, which spans from US$159.25 to US$233.81. The company’s recent earnings report, released July 31, showed quarterly earnings of US$4.72 per share, falling short of analyst expectations by US$0.86. Despite the miss, RGA posted a 14.8% increase in revenue year-over-year, reaching US$5.6 billion for the quarter. Net margin stood at 3.54%, and return on equity was 12.56%.
The company’s board recently approved an increase in its quarterly dividend to US$0.93 per share, up from US$0.89, reflecting management’s confidence in RGA’s long-term cash flow and capital position. The new dividend represents an annualized yield of 1.9%.
Despite the recent earnings miss, Wall Street remains largely positive on RGA’s prospects. The stock currently carries a consensus rating of “Moderate Buy,” with seven analysts rating it a Buy and four rating it Hold. The average price target stands at $241.50, according to MarketBeat, suggesting analysts see room for upside from current levels.
Recent analyst commentary has been mixed. Wells Fargo & Company recently lowered its price target from US$249 to $241, while JPMorgan Chase & Co. raised its target to US$264 and maintained an “overweight” rating. Morgan Stanley, meanwhile, cut its target to $195 and assigned an “equal weight” rating.
RGA, with a market capitalization of US$12.63 billion, is a leading provider of traditional life and health reinsurance, as well as financial solutions for insurance companies worldwide. The company’s performance has benefited from strong demand for reinsurance products and a growing global market. However, the sector faces headwinds from macroeconomic uncertainty, evolving regulatory requirements, and ongoing competition.
As a group, sell-side analysts expect RGA to post earnings of US$22.90 per share for the current fiscal year, reflecting continued growth but also acknowledging the impact of recent volatility in financial markets.
Ballentine Partners has not publicly disclosed specific reasons for its reduction in RGA holdings. Such portfolio adjustments are common among institutional investors and may reflect a combination of profit-taking, risk management, or shifting views on sector prospects.
