Top 5 Insurance Stocks To Own Right Now

If your company ever has to stand before the Supreme Court, it’s a big deal. Winning your case – an even bigger deal. Winning your case with a unanimous verdict – that’s downright huge.

That was the news for Monsanto (NYSE: MON  ) yesterday, and it probably wasn’t even the most important revelation of the day for the company.

An open and shut case
For some time now, Monsanto has been catching a lot of negative press for its genetically modified seeds. But yesterday’s win had nothing to do with the safety or morality of genetically modified organisms, or GMOs, and everything to do with a farmer trying to circumnavigate the law.

Indiana farmer Vernon Bowman signed an agreement in 1999 that he wouldn’t collect the seeds after harvesting his crop of Roundup-resistant soybeans provided by Monsanto. In an attempt to save money, Bowman bought commodity grain from a grain elevator. Such grain is usually used as feed for animals; but Bowman planted it, knowing that some may contain Monsanto seeds.

Top 5 Insurance Stocks To Own Right Now: Metlife Inc (MET)

MetLife, Inc. (MetLife), incorporated on August 10, 1999, is a provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife operates in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. It is organized into six segments: Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home (collectively, U.S. Business), and Japan and Other International Regions (collectively, International). In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank, National Association (MetLife Bank) and other business activities. U.S. Business provides insurance and financial services products, including life, dental, disability, auto and homeowner insurance, guaranteed interest and stable value products, and annuities through independent retail distribution channels, as well as a t the workplace. Outside the U.S., it operates in Japan and over 50 countries within Latin America, Asia Pacific, Europe and the Middle East. MetLife is the life insurer in Mexico and also holds positions in Japan, Poland, Chile and Korea. This business provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement and savings products to both individuals and groups. In August 2012, it acquired Reynolds Plantation. In January 2013, the Company completed the sale of MetLife Bank, N.A.’s deposit business. Effective July 25, 2013, MetLife Inc acquired Broadstone Laurel Highlands, from Alliance Residential Fund I. In September 2013, MetLife Inc and Thayer Lodging Group acquired the 365-room Hilton Los Cabos Beach & Golf Resort in Cabo San Lucas, Mexico in a joint venture.

Insurance Products

The Insurance Products segment offers a range of protection products and services aimed at serving the financ ial needs of its customers throughout their lives. These pro! ducts are sold to individuals and corporations, as well as other institutions and their respective employees. It is organized in three businesses: Group Life, Individual Life and Non-Medical Health.

The Group Life insurance products and services include variable life, universal life, and term life products. It offer group insurance products as employer-paid benefits or as voluntary benefits where all or a portion of the premiums are paid by the employee. These group products and services also include employee paid supplemental life and are offered as standard products or may be tailored to meet specific customer needs.

The Individual Life insurance products and services include variable life, universal life, term life and whole life products. Additionally, through its broker-dealer affiliates, it offers a full range of mutual funds and other securities products. The products within both Group Life and Individual Life include Variable Life, Universa l Life, Term Life and Whole Life. Variable life products provide insurance coverage through a contract that gives the policyholder the policyholder flexibility in investment choices and, depending on the product, in premium payments and coverage amounts, with certain guarantees. With variable life products, premiums and account balances can be directed by the policyholder into a variety of separate account investment options or directed to the Company’s general account. In the separate account investment options, the policyholder bears the entire risk of the investment results.

Universal life products provide insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances, are allocated only to the Company’s general account. Universal life products may allow the insured to increase or decrease the amount of death benefit coverage over the term of the contract and the owner to adjust the frequency and amount of premium payments.

Term life products provid! e a guara! nteed benefit upon the death of the insured for a specified time period in return for the periodic payment of premiums. Specified coverage periods range from one year to 30 years, but in no event are they longer than the period over, which premiums are paid. Death benefits may be level over the period or decreasing. Decreasing coverage is used principally to provide for loan repayment in the event of death. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed. Term insurance products are sometimes referred to as pure protection products, in that there are typically no savings or investment elements. Term contracts expire without value at the end of the coverage period when the insured party is still living.

Whole life products provide a guaranteed benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Premium payments may be required for the e ntire life of the contract period, to a specified age or period, and may be level or change in accordance with a predetermined schedule. Whole life insurance includes policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash or apply them to increase death benefits, increase cash values available upon surrender or reduce the premiums required to maintain the contract in-force.

The Non-Medical Health products and services include dental insurance, group short- and long-term disability, individual disability income, long-term care (LTC), critical illness and accidental death & dismemberment coverage. Other products and services include employer-sponsored auto and homeowners insurance provided through the Auto & Home segment and prepaid legal plans. The Company also sells administrative services-only (ASO) arrangements to some employers. The products in this area are Dental, Disability and Long-term Care (LT C). Dental products provide insurance and ASO plans that ass! ist emplo! yees, retirees and their families in maintaining oral health while reducing out-of-pocket expenses and providing superior customer service. Dental plans include the Preferred Dentist Program and the Dental Health Maintenance Organization. Disability products provide a benefit in the event of the disability of the insured. This benefit is in the form of monthly income paid until the insured reaches age 65. In addition to income replacement, the product may be used to provide for the payment of business overhead expenses for disabled business owners or mortgage payment protection. This is offered on both a group and individual basis. LTC products provide protection against the potentially high costs of LTC services. They generally pay benefits to insureds that need assistance with activities of daily living or have a cognitive impairment.

Retirement Products

The Retirement products segment includes a variety of variable and fixed annuities that are primarily sold to individuals and employees of corporations and other institutions. The products in this area are Variable Annuities and Fixed Annuities. Variable annuities provide for both asset accumulation and asset distribution needs. Variable annuities allow the contract holder to make deposits into various investment options in a separate account, as determined by the contract holder. The risks associated with such investment options are borne entirely by the contract holder, except where guaranteed minimum benefits are involved.

Fixed annuities provide for both asset accumulation and asset distribution needs. Fixed annuities do not allow the same investment flexibility provided by variable annuities, but provide guarantees related to the preservation of principal and interest credited.

Corporate Benefit Funding

The Corporate Benefit Funding segment includes a range of annuity and investment products, including, guaranteed intere st products and other stable value products, income annuitie! s, and se! parate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company, bank or trust owned life insurance used to finance non-qualified benefit programs for executives. The products in this area are Stable Value Products, Pensions Closeouts, Torts and Settlements, Capital Markets Investment Products and other Corporate Benefit Funding Products and Services. The Company offers general account guaranteed interest contracts, separate account guaranteed interest contracts, and similar products used to support the stable value option of defined contribution plans. It also offers private floating rate funding agreements that are used for money market funds, securities lending cash collateral portfolios and short-term investment funds.

The Company offers general account and separate account annuity products, generally in connection with the termination of defined benefit pension plans, both in the United States and the United Kingdom. It also offers partial risk transfer solutions that allow for partial transfers of pension liabilities and annuity products that include single premium buyouts. It offers strategies for complex litigation settlements, primarily structured settlement annuities. Under the Capital Markets Investment Products, the products offered include funding agreements, Federal Home Loan Bank advances and funding agreement-backed commercial paper. Under the Other Corporate Benefit Funding Products and Services, it offers specialized insurance products designed specifically to provide solutions for non-qualified benefit and retiree benefit funding purposes.

Auto & Home

The Auto & Home segment includes personal lines property and casualty insurance offered directly to employees at their employer’s worksite, as well as to individuals through a variety of retail distributi on channels, including independent agents, property and casu! alty spec! ialists, direct response marketing and the individual distribution sales group. Auto & Home primarily sells auto insurance, which represented 67% of Auto & Home’s total net earned premiums in 2011. Homeowners and other insurance represented 33% of Auto & Home’s total net earned premiums in 2011. The products in this area are Auto Coverages and Homeowners and Other Coverages. Auto insurance policies provide coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic automobiles and trailers. Auto & Home offers traditional coverage, such as liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensive. Homeowners’ insurance policies provide protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage to dwellings and contents from a variety of perils, as well as coverage for liability arising from ownership or occupancy. Other insurance includes personal excess liability (protection against losses in excess of amounts covered by other liability insurance policies), and coverage for recreational vehicles and boat owners. Most of Auto & Home’s homeowners’ policies are traditional insurance policies for dwellings, providing protection for loss on a replacement cost basis. These policies also provide additional coverage for reasonable, normal living expenses incurred by policyholders that have been displaced from their homes.

International

International provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement & savings products to both individuals and groups. The Company focuses on markets primarily within Japan, Latin America, Asia Pacific, Europe and the Middle East. It operates in international markets through subsidiaries and affiliates. The Company operates in 22 countries in Latin America, with o perations in Mexico, Chile and Argentina. It operates in fou! r countri! es in Asia Pacific with operations in Korea, Hong Kong and Australia. It operates in 35 countries in Europe and the Middle East with operations in Poland, the United Kingdom, France, and the United Arab Emirates, as well as through a consolidated joint venture in India.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, which is invested to optimize investment spread and to fund company initiatives and various start-up and run-off entities. Mortgage products offered by MetLife Bank include forward and reverse residential mortgage loans. Residential mortgage loans are originated through MetLife Bank’s national sales force, mortgage brokers and mortgage correspondents. The residential mortgage banking activities include the origination and servicing of mortgage loans. Mortgage loans are held-for-investment or sold primarily into Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corpo ration (FHLMC) or Government National Mortgage Association (GNMA) securities. Deposit products include traditional savings accounts, money market savings accounts, certificates of deposit (CDs) and individual retirement accounts.

Advisors’ Opinion:

  • [By Ben Levisohn]

    But there are winners–and they’re any stock that’s helped by higher rates. There are mutual fund companies with big money-market fund businesses, who wouldn’t be forced to run these funds for what is essentially free. Federated Investors (FII), for instance, has jumped 2.1% to $27.99. Life insurance companies, too, are rising because they should be able to earn more on their investments. MetLife (MET), for instance, has risen 1.3% to $53.03.

  • [By Ben Levisohn]

    It’s been a good day for life insurers across the board today, thanks to speculation that the Fed could get more hawkish following today’s jobs report–and higher interest rates would benefit insurers. Shares of Prudential have gained 2% to $88.47 at 2:53 p.m. today, while Metlife (MET) has risen 1.3% to $53.04 and Lincoln National (LNC) has advanced 1.6% to $52.75. American International Group (AIG) has dropped 0.2% to $51.05.

Top 5 Insurance Stocks To Own Right Now: American International Group Inc.(AIG)

American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.

Advisors’ Opinion:

  • [By Ben Levisohn]

    American International Group (AIG) has made oodles of progress since its bad pre-financial-crisis bets nearly took it down. If nothing else, American International Group’s 49% annualized return during the past five years is a sign of that progress.

    Bloomberg News

    Just don’t expect more of the same, say Deutsche Bank’s Joshua Shanker and Phil Stefano who downgraded American International Group. They explain why:

    After making significant improvements in its core operations, elevated expenses continue to impose a ceiling on the profitability of [American International Group’s] the property and casualty business. Management indicates that Fuji unit integration costs will keep expenses high through 2014, which suggests that core ROE may stagnate at around 6% for the foreseeable future. While we believe cash flow will ultimately exceed core and GAAP EPS, we believe incremental buyers will need to see additional combined ratio improvement to be motivated to purchase [American International Group] stock.

    Shanker and Stefano expect shares of American International Group to remain range bound near $50 in the short-term.

    Shares of American International Group have dropped 1.7% to $49.67 at 1:19 p.m. today, while American Financial Group (AFG) has, dropped 0.2% to $57.23, HCC Insurance (HCC) is little changed at $45.12, Travelers (TRV) has dipped 0.1% to $83.52 and Chubb (CB) is off 0.1% at $86.58.

  • [By Ben Levisohn]

    It’s been a good day for life insurers across the board today, thanks to speculation that the Fed could get more hawkish following today’s jobs report–and higher interest rates would benefit insurers. Shares of Prudential have gained 2% to $88.47 at 2:53 p.m. today, while Metlife (MET) has risen 1.3% to $53.04 and Lincoln National (LNC) has advanced 1.6% to $52.75. American International Group (AIG) has dropped 0.2% to $51.05.

  • [By Marc Bastow]

    Global insurance company AIG (AIG) raised its quarterly dividend 25% to 12.5 cents per share, payable March 25 to shareholders of record as of March 11.
    AIG Dividend Yield: 1.03%

Top 5 Insurance Stocks To Own Right Now: Universal American Corp (UAM)

Universal American Corp., incorporated on December 22, 2010, through its health insurance and managed care subsidiaries, primarily serves the growing Medicare population by providing Medicare Advantage products. It provides a variety of healthcare services, including case management and care coordination, clinical quality and utilization review and behavioral health services to Medicaid agencies and other third parties. The Company’s business segments include Senior Managed Care, which provides Medicare Advantage segment reflects its Medicare Advantage HMO, PPO and PFFS businesses, and Traditional Insurance segment reflects its insurance products not offered through government programs, which includes Medicare supplement, other senior health insurance, specialty health insurance and life insurance. The Company provides medical management services, information and analysis, and other support services to enable its health care partners to serve their patients better.

In addition , it seeks an opportunity to address the high cost of health care for the remaining 75% of the Medicare population enrolled in traditional fee-for-service Medicare and have joined primarily with primary-care and multi-specialty provider groups to form thirty-one Accountable Care Organizations, or ACOs, pursuant to the Medicare Shared Saving Program, or Shared Savings Program.

On March 2, 2012, the Company acquired APS Healthcare, Inc., known as APS Healthcare. APS Healthcare provides specialty healthcare solutions primarily to Medicaid agencies. APS Healthcare offers a broad range of healthcare solutions, including case management and care coordination, clinical quality and utilization review, and behavioral health services that enable its customers to improve the quality of care and reduce healthcare costs.

Senior Managed Care – Medicare Advantage

The Company’s Senior Managed CareMedicare Advantage segment reflects its Medicare Advantage HMO, PPO and PFFS bu! sinesses.. During the year ended December 31, 2012, the Company operated Medicare coordinated care plans including PPOs and HMOs as well as its network-based private fee-for-service (PFFS) and rural PFFS business, which provides coverage to Medicare beneficiaries in 36 states. These businesses provide managed care for persons with Medicare under contracts with CMS. Its HMO plans are offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. It operates HMO plans are offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. It also has Medicare Advantage HMO operations in locations outside of Southeastern Texas including four counties in North Texas offering TexasFirst Health Plans thro ugh SelectCare Health Plans; nine counties in Oklahoma City offering Generations Healthcare through Today’s Options of Oklahoma, Inc; and three counties in Indianapolis, Indiana offering Today’s Options HMO through SelectCare Health Plans.

The Company’s PPO plans are provided under the name Today’s Options PPO, which offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. This coordinated care product is built around contracted networks of providers who, in cooperation with the health plan, coordinate an active medical management program. In 2012, the Company offered PPO plans to 41 markets in 120 counties in 17 states.

The Company’s PFFS plans are provided under the name Today’s Options, which offered under contracts with CMS and provide enhanced health care benefits compared to traditional Medic are, subject to cost sharing and other limitations. These pl! ans have l! imited provider network restrictions, which allow the members to have more flexibility in the delivery of their health care services than other Medicare Advantage plans with limited provider network restrictions. Some of these products include a defined prescription drug benefit. In addition to a fixed monthly payment per member from CMS, individuals in these plans may be required to pay a monthly premium in selected counties or for selected enhanced products. In 2012, it offered PFFS products in a total of 36 states, which included PFFS products with network restrictions to 51 markets in 280 counties in 18 states and PFFS products without network restrictions to 1,052 counties in 32 states.

Traditional Insurance

The Company’s traditional insurance segment reflects the results of its Medicare supplement, other senior health insurance, specialty health insurance, and life insurance. It designed the products in this segment primarily for the senio r market and market them through its career agency force and its network of independent general agencies. The Company discontinued marketing and selling traditional insurance products after June 1, 2012. This segment also includes other products that it stopped selling several years ago, such as long-term care, medical insurance and disability insurance, as well as previously produced or acquired term, universal life, and whole life insurance products and single and flexible premium fixed annuities.

The Company competes with United Healthcare, Humana, Wellpoint, Aetna and Cigna

Advisors’ Opinion:

  • [By Brian Orelli]

    Health insurers such as Universal American (NYSE: UAM  ) and Humana (NYSE: HUM  ) that offer supplementary Medicare insurance could be hurt if seniors decided to drop the added coverage, but I doubt the increased premiums will put a major dent in seniors’ budgets. Retirees making more than $85,000 per year will have to pay about $250 more per year than they do right now. Any losses will be more than be made up for by the Centers for Medicare and Medicaid Services’ decision this month to reverse its  previously announced cuts to reimbursement rates.

Top 5 Insurance Stocks To Own Right Now: Principal Financial Group Inc(PFG)

Principal Financial Group, Inc. provides retirement savings, investment, and insurance products and services worldwide. The company?s Retirement and Investor Services segment provides retirement savings and related investment products and services, including a portfolio of asset accumulation products and services primarily to small and medium-sized businesses and individuals in the United States. This segment offers products and services to businesses for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, and employee stock ownership plan consulting services; and annuities, mutual funds, and bank products and services to the employees of its business customers and other individuals. Principal Financial Group?s Principal Global Investors segment offers a range of equity, fixed income, and real estate investments, as well as specialized overlay and advisory services to institutional inve stors. The company?s Principal International segment offers retirement products and services, annuities, mutual funds, institutional asset management, and life insurance accumulation products in Brazil, Chile, China, Hong Kong SAR, India, Indonesia, Malaysia, Mexico, Singapore, and Thailand. Principal Financial Group?s U.S. Insurance Solutions segment offers individual life insurance, as well as specialty benefits in the United States. Its individual life insurance products include universal and variable universal life insurance and traditional life insurance; and specialty benefit products comprise group dental and vision insurance, individual and group disability insurance, and group life insurance, as well as fee-for-service claims administration and wellness services. The company was founded in 1879 and is based in Des Moines, Iowa.

Advisors’ Opinion:

  • [By Michael Calia]

    Principal Financial Group Inc.(PFG) said its fourth-quarter earnings rose 8.6%, touting its strong results for the period amid continued economic concern.

Top 5 Insurance Stocks To Own Right Now: Reinsurance Group of America Inc (RGA)

Reinsurance Group of America, Incorporated (RGA) is an insurance holding company. RGA is engaged in the reinsurance of individual and group coverages for traditional life and health, longevity, disability income, annuity and critical illness products, and financial reinsurance. During the year ended December 31, 2011, approximately 65.8% of the Company’s net premiums were from its operations in North America, represented by its United States and Canada segments. Its subsidiaries include RGA Reinsurance Company (RGA Reinsurance), Reinsurance Company of Missouri, Incorporated (RCM), RGA Reinsurance Company (Barbados) Ltd. (RGA Barbados), RGA Americas Reinsurance Company, Ltd. (RGA Americas), RGA Atlantic Reinsurance Company, Ltd. (RGA Atlantic), RGA Life Reinsurance Company of Canada (RGA Canada), RGA Reinsurance Company of Australia, Limited (RGA Australia) and RGA International Reinsurance Company (RGA International). The Company has five geographic-based operational seg ments: United States, Canada, Europe & South Africa, Asia Pacific and Corporate and Other. On January 1, 2012, it dissolved its United Kingdom reinsurance subsidiary and transferred its business to RGA International, the Company’s Ireland-based subsidiary, to better manage capital resources.

As of December 31, 2011, the Company has operation in Australia, Barbados, Bermuda, People’s Republic of China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, the United Arab Emirates and the United Kingdom. The Company provides reinsurance products to the life insurance companies worldwide. The Company obtains its revenues through reinsurance agreements, which cover a portfolio of life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability income, as well as annuities and financial reinsurance.

!

United States Operations

During 2011, the United States operations represented 54.4% of the Company’s net premiums. The United States operations market traditional life and health reinsurance, reinsurance of asset-intensive products, and financial reinsurance, primarily to the United States life insurance companies. The United States Traditional sub-segment provides life and health reinsurance to domestic clients for a range of products through yearly renewable term agreements, coinsurance, and modified coinsurance. Premiums vary for smokers and non-smokers, males and females, and may include a preferred underwriting class discount. Reinsurance premiums are paid in accordance with the treaty. Automatic reinsurance treaty provides that the ceding company will cede risks to a reinsurer on specified blocks of policies where the underlying policies meet the ceding company’s underwriting criteria. The United States facultative reinsurance operation invo lves the assessment of the risks inherent in multiple impairments, such as heart disease, high blood pressure, and diabetes; cases involving policy face amounts, and financial risk cases, which include cases involving policies disproportionately in relation to the financial characteristics of the proposed insured. During 2011, approximately 20.4% of the United States gross premiums were written on a facultative basis.

Canada Operations

During 2011, the Canada operations represented 11.4% of the Company’s net premiums. During 2011, approximately 85.2% of the recurring new business was written on an automatic basis. The Company operates in Canada through RGA Canada, a wholly owned subsidiary. RGA Canada is a life reinsurer in Canada, based on new individual life insurance production. It assists clients with capital management and mortality and morbidity risk management and is primarily engaged in traditional individual life reinsurance, as well as c reditor, group life and health, critical illness, and longev! ity reins! urance. Creditor insurance covers the outstanding balance on personal, mortgage or commercial loans in the event of death, disability or critical illness and is shorter in duration than traditional life insurance. Clients include the life insurers in Canada.

Europe & South Africa Operations

During 2011, the Europe & South Africa operations represented 16.3% of the Company’s net premiums. This segment serves clients from subsidiaries, licensed branch offices and/or representative offices located in France, Germany, India, Ireland, Italy, Mexico, the Netherlands, Poland, South Africa, Spain, the United Arab Emirates and the United Kingdom. These offices operate primarily through the Company’s subsidiaries RGA International and RGA South Africa. The principal types of reinsurance for this segment include life and health products through yearly renewable term and coinsurance agreements, the reinsurance of critical illness coverage, which provides a benefit in the event of the diagnosis of a pre-defined critical illness and the reinsurance of longevity risk related to payout annuities. The reinsurance agreements of critical illness coverage may be either facultative or automatic agreements. Premiums earned from critical illness coverage represented 20.5% of the total net premiums for this segment during 2011. During 2011, the United Kingdom operations generated approximately 62.9% of the segment’s gross premiums.

Asia Pacific Operations

During 2011, the Asia Pacific operations represented 17.8% of the Company’s net premiums. The Company has a presence in the Asia Pacific region with licensed branch offices and/or representative offices in Hong Kong, Japan, South Korea, Taiwan, New Zealand, Labuan (Malaysia) and the People’s Republic of China. The principal types of reinsurance for this segment include life, critical illness, health, disability income, superannuation, and financial reinsur ance. Superannuation is the Australian government mandated c! ompulsory! retirement savings program. Superannuation funds accumulate retirement funds for employees, and in addition, offer life and disability insurance coverage. Reinsurance agreements may be either facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. During 2011, the Australian operations generated approximately 52.3% of the total gross premiums for the Asia Pacific operations. The Hong Kong, Labuan, Japan, Taiwan, China and South Korea offices provide full reinsurance services and are supported by the Company’s United States and International Division Sydney office.

Corporate and Other

Corporate and Other operations include investment income from invested assets not allocated to support segment operations and undeployed proceeds from the Company’s capital raising efforts, in addition to unallocated investment related gains or losses. Corporate expenses consist of the offset to capital charges al located to the operating segments within the policy acquisition costs and other insurance expenses line item, unallocated overhead and executive costs, and interest expense related to debt. In additionally, Corporate and Other includes results from, among others, RGA Technology Partners, Inc. (RTP), a wholly owned subsidiary that develops and markets technology solutions for the insurance industry and the investment income and expense associated with the Company’s collateral finance facilities.

The Company competes with Munich Re, Swiss Re, Hannover Re, SCOR Global Re, Berkshire Hathaway and Generali.

Advisors’ Opinion:

  • [By Selena Maranjian]

    The biggest new holdings are Philip Morris International and Reinsurance Group of America (NYSE: RGA  ) . Other new holdings of interest include Radian Group (NYSE: RDN  ) . To say that mortgage insurer Radian had a good past year would be an understatement, as the stock more than tripled. That’s partly due to expectations of a boom in business as the housing market picks up, with tighter lending rules probably leading to greater need for the coverage. The stock recently got an upgrade, with an analyst expecting a possibly bumpy 2013 because of a high level of delinquent loans, but much smoother sailing in following years.

  • [By Brian Pacampara]

    Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, life and health reinsurer Reinsurance Group of America (NYSE: RGA  ) has earned a coveted five-star ranking.

  • [By Brian Pacampara]

    What: Shares of life and health reinsurer Reinsurance Group of America (NYSE: RGA  ) sank 10% today after its quarterly results disappointed Wall Street.

  • [By David Sterman]

     

    2. Reinsurance Group of America (NYSE: RGA) I've been singing the praises of insurance stocks throughout 2013, and though they have started to make solid upward moves, they are still quite undervalued. As long as their balance sheets are worth more than the public market value of their stocks, then you should pounce.

    This reinsurer (which insures the insurance companies against catastrophic payouts) is a perfect example. At the end of the second quarter, tangible book value stood at $82.97 a share. That's roughly 24% above the current stock price. And RGA is doing what any "below book" stock should do: buying back shares. The current buyback will be fueled by a $400 investment that should shrink shares outstanding by more than 5%.