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FOR IMMEDIATE RELEASE
OLDWICK - MAY 15, 2019 10:28 AM (EDT)
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.
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