Citi upgrades Reinsurance Group, Unum on lower liquidity risk for U.S. insurers

Reinsurance of America, Incorporated

15/03/2023 13:55

** Citigroup upgrades Reinsurance Group Of America Inc  RGA.N  two-notch to
"buy" from "sell" rating and Unum Group  UNM.N  to "buy" from "neutral"         
    
    ** Brokerage sees no material risk of liquidity for U.S. insurers; says UNM
and RGA among the most fundamentally strong companies in the life insurance
sector 
    ** "In our view, a bank run-fearing customer would also likely consider the
ramifications of liquidating his/her retirement savings and giving them to a
bank" - Citi
    ** Raises RGA PT to $158 from $133; lifts UNM PT to $53 from $49 
    ** Brokerage "strongly recommends" UNM, citing its capital-efficient core
group benefits business, improving free cash flow profile and "negligible"
exposure to equity markets and structured securities
    ** Notes RGA's lower allocations to structured securities compared with the
macro uncertainty for peers following the collapse of Silicon Valley Bank
 SIVB.O  and Signature Bank  SBNY.O  
    ** UNM shares down 4.2% 

 (Reporting by Reshma Rockie George in Bengaluru)
 ((Reshma.George@thomsonreuters.com))