Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

REINSURANCE GROUP OF AMERICA, INCORPORATED

(RGA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

AM Best : Affirms Credit Ratings of Reinsurance Group of America, Incorporated and Its Subsidiaries

09/30/2021 | 05:03pm EST

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of RGA Reinsurance Company (Chesterfield, MO), RGA Americas Reinsurance Company, Ltd (Bermuda) and its subsidiaries, RGA Life Reinsurance Company of Canada (Toronto, Canada) and RGA Atlantic Reinsurance Company, Ltd. (Barbados). These companies collectively are referred to as RGA. AM Best also has affirmed the Long-Term ICR of “a-” (Excellent) and all Long-Term Issue Credit Ratings (Long-Term IR) on the debt securities and indicative shelf ratings of Reinsurance Group of America, Incorporated (Chesterfield, MO) [NYSE: RGA]. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs.)

The ratings reflect RGA’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

RGA’s balance sheet strength remains solid, and its consolidated risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Model (BCAR), despite impacts from the COVID-19 pandemic. RGA had bolstered its balance sheet strength over the past year by ceasing share repurchases and completing a $500 million common stock offering, resulting in a record level of cash and cash equivalents within the organization at year-end 2020. As a result, financial leverage declined over the past year to approximately 22%, which is well within AM Best’s guidelines for the current rating. Additional factors supporting RGA’s very strong balance sheet strength assessment are its significant operating cash flows, good financial flexibility and a high quality investment portfolio. AM Best notes that RGA experienced only modest amount of impairments and downgrades within its investment portfolio during the past year.

RGA also benefits from its leading market positions in the United States, Canada, Europe and Asia with approximately 45% of revenues coming from international operations. While overall new business production was negatively impacted by the pandemic, AM Best notes that overall premiums and assumed life insurance inforce have increased in each of the past five years, primarily driven by growth in all geographic areas of its traditional reinsurance segment, and particularly in Asia. The company’s innovative culture and track record of providing new innovative solutions to the insurance industry is also a factor in its favorable business profile assessment.

Partially offsetting these positive rating factors is the volatility of earnings in recent periods within certain core segments, including its U.S. individual mortality segment and its Australian business segment. AM Best notes that mortality increased materially in 2020 and continued through the first part of 2021 due to the COVID-19 pandemic, leading to losses in the individual life insurance segment. However, earnings generated from its other core businesses generally have been increasing in recent periods and mortality has shown improvement in more recent months. While some earnings volatility may continue over the near term, AM Best expects that earnings will gradually improve as mortality rates continue to decline with the roll out of vaccines. RGA also has increased its exposure to higher-risk product lines, including annuities and longevity reinsurance, and maintains a moderate-sized block of long-term care business that may add to operating volatility over the mid-to-long term. Partially mitigating this concern is RGA’s comprehensive risk management framework, which is an integral part of its corporate culture.

The following Long-Term IRs have been affirmed with a stable outlook:

Reinsurance Group of America, Incorporated—
-- “a-” (Excellent) on $400 million 4.7% senior unsecured notes, due 2023
-- “a-” (Excellent) on $400 million 3.95% senior unsecured notes, due 2026
-- “a-” (Excellent) on $600 million 3.9% senior unsecured notes, due 2029
-- “a-” (Excellent) on $600 million 3.15% senior unsecured notes, due 2030
-- “bbb+” (Good) on $400 million 6.2% fixed to floating subordinated debentures, due 2042
-- “bbb+” (Good) on $400 million 5.75% fixed to floating rate subordinated debentures, due 2056
-- “bbb” (Good) on $400 million variable rate junior subordinated debentures, due 2065

The following indicative Long-Term IRs available under shelf registrations have been affirmed with a stable outlook:

Reinsurance Group of America, Incorporated—
-- “a-” (Excellent) on senior unsecured debt
-- “bbb+” (Good) on subordinated debt
-- “bbb” (Good) on preferred stock

RGA Capital Trust III and IV—
-- “bbb” (Good) on trust preferred securities

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


ę Business Wire 2021
All news about REINSURANCE GROUP OF AMERICA, INCORPORATED
12/01REINSURANCE OF AMERICA INCORPORATED : GROUP OF AMERICA TO HOST INVESTOR DAY - Form 8-K
PU
12/01REINSURANCE GROUP OF AMERICA INC : Regulation FD Disclosure, Financial Statements and Exhi..
AQ
12/01Reinsurance Group of America to Host Investor Day
BU
11/18Morgan Stanley Adjusts Price Target on Reinsurance Group of America to $125 from $128, ..
MT
11/16REINSURANCE OF AMERICA INCORPORATED : RGA Selected as Life Reinsurer of the Year by Asia I..
PU
11/15REINSURANCE GROUP OF AMERICA, INCORP : Ex-dividend day for
FA
11/12REINSURANCE GROUP OF AMERICA INC : Change in Directors or Principal Officers (form 8-K)
AQ
11/12Reinsurance Group of America, Incorporated Announces Not Stand for Re-Election of Chris..
CI
11/10RGA Recognized for Board Diversity by Women's Forum of New York
PU
11/08RBC Cuts Price Target on Reinsurance Group of America to $123 From $129, Citing Bigger-..
MT
More news
Analyst Recommendations on REINSURANCE GROUP OF AMERICA, INCORPORATED
More recommendations
Financials (USD)
Sales 2021 15 921 M - -
Net income 2021 503 M - -
Net Debt 2021 3 208 M - -
P/E ratio 2021 6,59x
Yield 2021 3,02%
Capitalization 6 389 M 6 389 M -
EV / Sales 2021 0,60x
EV / Sales 2022 0,60x
Nbr of Employees 3 600
Free-Float 78,9%
Chart REINSURANCE GROUP OF AMERICA, INCORPORATED
Duration : Period :
Reinsurance Group of America, Incorporated Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends REINSURANCE GROUP OF AMERICA, INCORPORATED
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 8
Last Close Price 94,51 $
Average target price 124,88 $
Spread / Average Target 32,1%
EPS Revisions
Managers and Directors
Anna Manning President, Chief Executive Officer & Director
Todd C. Larson Chief Financial Officer & Senior Executive VP
J. Cliff Eason Chairman
Suzy Scanlon Chief Information Officer & Executive VP
Leslie Ann Barbi Chief Investment Officer & Executive VP
Sector and Competitors
1st jan.Capi. (M$)
REINSURANCE GROUP OF AMERICA, INCORPORATED-18.46%6 389
MUNICH RE1.48%39 094
SWISS RE LTD5.02%27 497
HANNOVER RÜCK SE22.68%21 832
EVEREST RE GROUP, LTD.9.74%10 114
RENAISSANCERE HOLDINGS LTD.-7.06%7 155