Insurers are among the biggest beneficiaries of interest rate hikes. The Federal Reserve has raised interest rates ten times since last year, with the most recent one being a 25-basis point hike. Insurance companies benefit significantly from rising interest rates as their underlying bond investments yield high returns.
Investors’ interest in Reinsurance Group of America, Incorporated (RGA) has been on the rise lately. RGA’s stock has gained 10.9% in price over the past month and 27.8% over the past year to close the last trading session at $147.63.
