Raymond James double downgraded Reinsurance Group (RGA) to Market Perform from Strong Buy without a price target The firm says rising competition for in force blocks and pension risk transfers dampens its enthusiasm on the stock. Reinsurance Group does not have retail distribution, which means it must compete with 20-25 largely Bermuda-based players for the deals that drive its growth, the analyst tells investors in a research note. Raymond James is also concerned regarding the temporary pause in the U.S. jumbo pension risk transfer market and increasingly lower returns on UK buy-in pension risk transfers.
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