A.M. Best Rates RGA, Inc. $400m Shelf Registration.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 9, 2001 A.M. Best Co. has assigned indicative ratings of "a" senior debt, "a-" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "a-" trust preferred securities to Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Group of America, (RGA RGA Reinsurance Group of America RGA Return Goods Authorization RGA Republican Governors Association RGA Residual Gas Analyzer RGA Royal Garrison Artillery RGA Restricted Growth Association (UK) RGA Rate Gyro Assembly ) Chesterfield, Missouri Chesterfield is the largest city in west St. Louis County, Missouri, United States. The population was 46,635 as of 2006[1] It is a suburb of St. Louis. Geography Chesterfield is located at (38.653402, -90. , on its recently filed $400 million shelf registration. A.M. Best Co. has also affirmed the "a" rating of the company's existing $100 million senior notes. The financial strength rating of A+ (Superior) on the group's U.S. and Canadian life/health insurance subsidiaries remain unchanged. The shelf registration statement provides for the issuance of up to $400 million in any combination of senior notes, subordinated notes, preferred securities, common stock, trust preferred securities as well as common stock options and warrants. A.M. Best expects total borrowings (debt plus preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. )--as a percent of total capital--to remain in the mid-20% range in the near to medium term. The rating actions reflect RGA's strong franchise in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life reinsurance market, high level of expertise in assessing mortality risk--which has led to sustained earnings growth in its core businesses--high quality balance sheet and strong risk-adjusted capitalization. The ratings also reflect the implicit and explicit benefits RGA derives from its strategic affiliation with its majority owner, MetLife. Partially offsetting these strengths is an increasingly competitive pricing environment in the life reinsurance market that may pressure margins in the near term. However, A.M. Best believes that RGA is well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its underwriting expertise and operational efficiencies as primary writers continue to outsource mortality risk, particularly given the breadth and quality of its traditional and non-traditional product development and service capabilities and its growing presence in the global reinsurance marketplace. RGA offers a broad array of reinsurance products targeting life insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies and is a member of the MetLife Group. As of December 31, 2000, RGA reported assets of approximately $6 billion, life insurance in-force of approximately $546 billion and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $863 million. The following debt ratings were assigned to the shelf registration: Reinsurance Group of America, Incorporated - Senior debt rating of "a" - Subordinated debt rating of "a-" - Preferred and convertible stock rating of "bbb+" RGA Capital Trust I - trust preferred securities rating of "a-" RGA Capital Trust II - trust preferred securities rating of "a-" The following rating on existing debt was affirmed: - "a" rating on $100 million 7.25% senior notes, due 2006 The A+ (Superior) financial strength ratings of the following members of RGA remains unchanged: - RGA Reinsurance Company - RGA Life Reinsurance Company of Canada A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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