CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 15, 2003 12:00 AM (EDT)
A.M. Best Co. has assigned indicative ratings of "a-" senior debt, "bbb+" subordinated debt and "bbb" preferred stock to Reinsurance Group of America, Incorporated's (RGA) (St. Louis) [NYSE: RGA] recent $800 million shelf registration. The filing does not impact RGA's current debt to total capitalization, which is 27%. The outlook for the ratings is stable.
A.M. Best views favorably RGA's debt servicing capabilities with cash flows supported by its strong franchise in the North American life reinsurance market and earnings growth. Additionally, RGA maintains strong liquidity, enhanced by a high quality asset portfolio and a favorable risk-adjusted capital position. The ratings also consider the implicit and explicit benefits RGA derives from its strategic affiliation with its majority owner, Metropolitan Life Insurance Company (New York).
These strengths are partially offset by the highly competitive nature of the life reinsurance marketplace, which may pressure future operating performance.
The following indicative debt ratings have been assigned to the shelf registration:
Reinsurance Group of America, Inc.-
- "a-" on senior unsecured debt
- "bbb+" on subordinated debt
- "bbb" on preferred stock
RGA Capital Trust III and IV-
- "bbb+" on trust preferred securities.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.