BALTIMORE - T. Rowe Price, the global investment management firm, has appointed Ben Riley as the Head of Insurance, a position set to take effect on January 1, 2025. Riley's promotion to this new role underscores the company's strategic emphasis on the insurance sector.
Riley, a Chartered Financial Analyst, will lead the team catering to insurance clients in North America and coordinate the firm's insurance-related initiatives globally. He will continue to serve his current clients and prospects while reporting to Doug Greenstein, Head of Institutional Business Development for Americas.
Doug Greenstein commented on Riley's appointment, highlighting his significant contributions to T. Rowe Price's growth in the insurance industry. Riley's leadership and experience are expected to drive further expansion and enhance client service.
With a tenure beginning in 2001 at T. Rowe Price, Riley has held various roles, including senior relationship manager for insurance general account mandates since 2017. Under his stewardship, the firm's insurance business has seen robust growth across multiple asset classes. Riley's background includes positions in Retirement Plan Services and the Fixed Income and Multi-Asset divisions.
Riley remarked on the firm's success in providing customized fixed income solutions to insurance clients, attributing it to T. Rowe Price's comprehensive research and service-oriented culture. He emphasized the importance of their approach for insurance mandates, which require a stable investment environment and are sensitive to impairments.
T. Rowe Price, established in 1937 and listed on the NASDAQ (GS: TROW), is recognized for its investment management and retirement services. The company manages $1.63 trillion in assets as of September 30, 2024, with a significant portion related to retirement. T. Rowe Price serves a global clientele and is known for its client-first integrity and active management across various investment capabilities.
This announcement is based on a press release statement from T. Rowe Price.
In other recent news, T. Rowe Price Group, Inc. has announced its month-end assets under management (AUM) totaling $1.61 trillion as of August 31, 2024. Despite experiencing preliminary net outflows of $5.3 billion in August, the company's AUM saw an increase from the previous months and year-end figures. The firm's equity assets rose to $825 billion, up from $814 billion at the end of July and $810 billion at the end of the second quarter. T. Rowe Price's target date retirement portfolios reported an AUM of $474 billion, which represents an increase from $464 billion in July and $453 billion at the end of June.
In the fiscal second quarter of 2024, T. Rowe Price posted an adjusted EBITDA of $161 million, slightly below the Bloomberg consensus of $167 million but within the company's own guidance range of $160 million to $180 million. The company's Exchange-Traded Funds (ETF) business reported significant growth, with assets under management reaching $1.57 trillion.
Goldman Sachs recently updated its outlook on T. Rowe Price, increasing the price target to $21.00 from the previous $18.00, while maintaining a Buy rating. Barclays initiated coverage on the company's shares with an Underweight rating and a price target of $99.00, highlighting growth challenges. TD Cowen maintained a Hold rating but reduced the 12-month price target for the company from $123 to $118. Despite these challenges, T. Rowe Price is diversifying its ETF offerings and has launched its first interval fund among other strategic initiatives.
InvestingPro Insights
T. Rowe Price's strategic move to appoint Ben Riley as Head of Insurance aligns well with the company's strong financial position and market performance. According to InvestingPro data, T. Rowe Price boasts a market capitalization of $24.63 billion, reflecting its significant presence in the investment management industry.
The company's financial health is further underscored by its attractive valuation metrics. T. Rowe Price currently trades at a P/E ratio of 13.02, which is relatively low compared to its near-term earnings growth potential. This is highlighted by one of the InvestingPro Tips, suggesting that the stock may be undervalued relative to its earnings prospects.
Moreover, T. Rowe Price has demonstrated a commitment to shareholder returns, maintaining dividend payments for 39 consecutive years. This consistency is particularly noteworthy given the company's current dividend yield of 4.53%, which may appeal to income-focused investors in the insurance sector that Riley will be targeting in his new role.
The company's profitability is also worth noting, with a gross profit margin of 50.69% for the last twelve months as of Q2 2024. This robust profitability, coupled with the InvestingPro Tip that analysts predict the company will remain profitable this year, suggests that T. Rowe Price is well-positioned to support its strategic initiatives in the insurance space.
For investors seeking a deeper understanding of T. Rowe Price's potential, InvestingPro offers additional insights, with 7 more tips available on the platform. These tips could provide valuable context for assessing the company's prospects as it expands its focus on the insurance sector under Riley's leadership.
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