CORRECTING AND REPLACING A.M. Best Affirms Financial Strength and Debt Ratings of RGA.Business Editors CORRECTION by...A.M. Best Co. OLDWICK, N.J.--(BUSINESS WIRE)--May 25, 2004 In BW5639 issued May 25, 2004: Please replace the release due to multiple revisions with the following corrected version. The corrected release reads: A.M. BEST AFFIRMS FINANCIAL STRENGTH AND DEBT RATINGS OF 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 A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of RGA 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. Company (RGA Re) (St. Louis, MO) and RGA Life Reinsurance Company of Canada (RGA CN) (Canada). In addition, A.M. Best has affirmed the debt ratings of Reinsurance Group of America, Inc's (RGA) (NYSE NYSE See: New York Stock Exchange :RGA)(St. Louis, MO) existing debt securities and indicative ratings under RGA's shelf registration. (See listing below.) The outlook for all ratings is stable. The financial strength rating reflects RGA Re and RGA CN's very strong franchise and client retention in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY), which, through affiliates, owns 51.9% of the companies. As a result of its well managed growth strategy, RGA Re has achieved sustainable increases in revenue, while continuing to increase market share in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , the United Kingdom, Europe and Asia. RGA Re has grown both organically and through select acquisitions, including the recently acquired life reinsurance business of Allianz Life Insurance Company of North America (Allianz) (Minnesota). This transaction brings approximately $280 billion of life in-force to RGA Re and is expected to generate $450-500 million in annual premiums. 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. Furthermore, RGA maintains a strong liquidity position, enhanced by a high quality asset portfolio and superior risk-adjusted capital position. A.M. Best anticipates RGA's current debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. of 26% will not exceed 30% over the medium term. RGA's financial flexibility was recently enhanced by its $427 million common share equity offering out of its existing shelf registration, leaving about $375 million for future capital raising initiatives. Partially offsetting these strengths are the highly competitive pricing environment in the life reinsurance market that may pressure margins in the near term and earlier credit losses stemming from the past difficult credit cycle. As of year-end 2003, RGA reported assets of $12.1 billion, life insurance in-force of approximately $1.3 trillion and stockholders equity of $2.0 billion. The financial strength rating of A+ (Superior) has been affirmed for the following companies: -- RGA Reinsurance Company -- RGA Life Reinsurance Company of Canada The following debt ratings have been affirmed: Reinsurance Group of America, Incorporated-- -- "a-"on $100 million 7.25% senior notes, due 2006 -- "a-" on $200 million 6.75% senior notes, due 2011 RGA Capital Trust I--(guaranteed by Reinsurance Group of America, Inc.) -- "bbb+" on $225 million 5.75% trust preferred income equity redeemable securities (PIERS) The following indicative ratings available under shelf registration have been affirmed: Reinsurance Group of America, Incorporated-- -- "a-" on senior debt -- "bbb+" on 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". -- "bbb" on 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. RGA Capital Trust III and IV-- -- bbb+" on trust preferred securities For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. 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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