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 United States.

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 RESERVED.

A.M. Best Co.
Louis Savarese, 908-439-2200, ext. 5168
Senior Financial Analyst
louis.savarese@ambest.com
or
Rosemarie Mirabella, 908-439-2200, ext. 5892
Managing Senior Financial Analyst
rosemarie.mirabella@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.