OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating of “a-” to
the $600 million 3.9% senior unsecured notes due May 15, 2029 issued by
Reinsurance Group of America, Incorporated (RGA) (Chesterfield, MO)
[NYSE:RGA]. The outlook assigned to this Credit Rating (rating) is
stable.
Proceeds from the sale of the senior notes will be utilized primarily
for general corporate purposes, including repayment of the $400 million
6.45% senior unsecured notes due Nov. 15, 2019. AM Best notes that RGA’s
financial leverage will increase over the near-term to just over 27%,
but is expected to decline when the senior notes due Nov. 15, 2019
mature. AM Best views RGA’s debt-servicing capabilities favorably, with
sufficient liquidity to service its debt, a well-laddered debt maturity
structure, strong interest coverage ratios and financial leverage ratios
that remain within AM Best’s guidelines for its current ratings.
RGA’s ratings also recognize its demonstrated track record of strong and
relatively stable GAAP-adjusted operating earnings despite a
persistently challenging market environment within the global
reinsurance sector that includes increased competition and the
continuation of the historically low interest rate environment. The
company also benefits from its leading market position and expansive
global footprint as demonstrated by its strong top line growth.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Michael Adams
Senior Financial Analyst
+1 908
439 2200, ext. 5133
[email protected]
Edward Kohlberg
Director
+1 908 439 2200,
ext. 5664
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
