OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has assigned a debt rating of “bbb+” to the newly
issued $400 million 6.2% fixed-to-floating subordinated debentures due
2042 of Reinsurance Group of America Incorporated(RGA)
(St. Louis, MO) (NYSE: RGA). The assigned outlook is stable.
The proceeds from the offering will be used for general corporate
purposes and the debentures will rank senior to an existing junior
subordinated debenture. A.M. Best notes that RGA’s adjusted financial
leverage is expected to remain below the 25% range, while interest
coverage is expected to remain above eight times. Both measures are
within A.M. Best’s guidelines for RGA’s current rating level.
The rating reflects RGA’s well-capitalized position, strong operating
results and its market position as one of the largest reinsurers in the
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include:
“Insurance Holding Company and Debt Ratings” and “Equity Credit for
Hybrid Securities.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.Louis Savarese, 908-439-2200, ext. 5168Senior
Mirabella, 908-439-2200, ext. 5892Managing Senior Financial
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Source: A.M. Best Co.