am best has a Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) from RGA Reinsurance Company (Chesterfield, MO), RGA Americas Reinsurance Company Ltd (Bermuda) , RGA Life Reinsurance Company of Canada (Toronto, Canada), Aurora National Life Assurance Company (Los Angeles, CA) and RGA Atlantic Reinsurance Company, Ltd. (Barbados). These companies are collectively referred to as RGA. AM Best also has a long-term ICR of “a-” (excellent) and all existing long-term issue ratings (long-term IRs) for the debt securities and indicative shelf ratings from Reinsurance Group of America, Incorporated (Chesterfield, MO) RGA. The outlook of these credit ratings (ratings) is Stable. Concurrently, AM Best assigned “bbb+” (good) to Reinsurance Group of America, Incorporated’s $700 million 7.125% Subordinated Notes due 2052. The outlook assigned to this rating is stable. (See below for a detailed listing of long-term IRs.)
The ratings reflect RGA’s balance sheet strength, which AM Best rates as very strong, strong operational performance, favorable business profile and very strong Enterprise Risk Management (ERM).
RGA’s balance sheet strength remains very strong, underpinned by its consolidated risk-adjusted capitalization, which remains at its strongest level as measured by Best’s capital adequacy ratio (BCAR) over the past two years, despite a significant impact from the COVID-19 pandemic. RGA had strengthened its balance sheet strength over the past two years by reducing the number of share repurchases while increasing the amount of cash and cash equivalents within the organization. While the company has since reduced the liquidity position within the organization, liquidity measures remain strong and financial leverage remains well within AM Best guidelines for the current rating. In addition, RGA maintains a high-quality investment portfolio that…
