This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Affirms Ratings Of Reinsurance Group Of America, Incorporated And Its Subsidiaries

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of RGA Reinsurance Company (St. Louis, MO) and RGA Life Reinsurance Company of Canada (Montreal, Canada). A.M. Best also has affirmed the ICR of “a-” and all ratings on the existing debt securities and indicative shelf ratings of Reinsurance Group of America, Incorporated (RGA) (St. Louis, MO) [NYSE: RGA]. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The ratings of RGA and its two core North American insurance subsidiaries are based upon its stable risk-adjusted capitalization, favorable GAAP earnings trends, including those recorded through the third quarter of 2012 and strong franchise in the global reinsurance market. Earnings are primarily driven by both its U.S. and Canadian traditional (mortality) segments. The group’s business profile is expanding from the continued growth and diversification benefits it derived from its international market segment along with the recent expansion of its U.S. based asset intensive business. RGA maintains a leadership position in the reinsurance marketplace, utilizing its technology infrastructure to provide facultative services to its client base. RGA continues to be recognized favorably in industry surveys and has a well-developed enterprise risk management program.

Offsetting rating factors include the potential challenges in the highly competitive and consolidating reinsurance marketplace as reflected in declining cession rates in RGA’s U.S. market and a business profile, which is dependent on the utilization of operating leverage to secure reserve credits for noneconomic Regulation AXXX and XXX reserves. With cession rates on the decline in the U.S. marketplace, RGA has been able to capitalize on growth in the international marketplace despite global economic challenges and some recent adverse mortality and morbidity experience within its Asia Pacific business segment. Low interest rates could pressure RGA’s balance sheet and earnings, particularly in its asset intensive segment.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs