Market Overview

A.M. Best Affirms Credit Ratings of Reinsurance Group of America, Incorporated and Its Subsidiaries


A.M. Best has affirmed the Financial Strength Rating of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"aa-" 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), collectively referred
to as RGA Re. A.M. Best also has affirmed the Long-Term ICR of "a-" and
all Long-Term Issue Credit Ratings (Long-Term IR) on the existing debt
securities and indicative shelf ratings of Reinsurance Group of
America, Incorporated
(RGA) (Chesterfield, MO) (NYSE:RGA). The
outlook of these Credit Ratings (ratings) is stable. (See below for a
detailed listing of the companies and Long-Term IRs.)

The ratings reflect RGA Re's balance sheet strength, which A.M. Best
categorizes as strong, as well as its strong operating performance,
favorable business profile and very strong enterprise risk management

RGA Re continues to demonstrate a 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. Operating results have been driven
primarily by underwriting results that have remained within pricing
parameters over the longer term in the company's core business lines, as
well as increasing earnings from its interest-sensitive lines of
business, which include fixed annuities, variable annuities and pension
risk transfers. The company also benefits from its leading market
position and expansive global footprint as demonstrated by its strong
top line growth. The ratings also acknowledge RGA Re's highly developed
ERM framework, which includes analyzing and reporting its risks on an
aggregated basis, ensuring that risks remain within its acceptable
appetites and limits, and utilizing economic capital modeling to
determine appropriate risk-adjusted capital levels to maintain within
the organization. In addition, A.M. 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 A.M. Best's guidelines
for its current ratings.

These strengths are offset partially by a shift in RGA Re's business
profile from mortality risk into higher-risk product lines, including
longevity reinsurance, long-term care and annuities, which A.M. Best
views as of lower creditworthiness in the company's product continuum.
Although RGA Re maintains a large block of annuities that lack surrender
charge protection and relatively higher minimum crediting rates, A.M.
Best notes that interest rate sensitivities currently remain at
manageable levels. However, A.M. Best believes a further material shift
in its business mix away from protection business could lead to higher
levels of operating volatility. While risk-adjusted capital levels
remain strong, RGA Re, on a statutory basis, maintains a dependence on
captive finance solutions for its redundant reserves. This has resulted
in a somewhat elevated level of operating leverage but remains within
A.M. Best guidelines. Additionally, the company has increased its
exposure to higher risk and less liquid investments in its general
account investment portfolio on a statutory basis, but remains within
industry averages on a GAAP consolidated basis.

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

Reinsurance Group of America, Incorporated
-- "a-" on $400
million 3.95% senior unsecured notes, due 2026
-- "bbb+" on $400
million 5.75% fixed to floating rate subordinated debentures, due 2056
"a-" on $400 million 6.45% senior unsecured notes, due 2019
-- "a-"
on $400 million 5% senior unsecured notes, due 2021
-- "a-" on $400
million 4.7% senior unsecured notes, due 2023
-- "bbb+" on $400
million 6.2% fixed to floating subordinated debentures, due 2042
"bbb" on $400 million variable rate junior subordinated debentures, due

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

Reinsurance Group of America, Incorporated
-- "a-" on
senior unsecured debt
-- "bbb+" on subordinated debt
-- "bbb"
on preferred stock

RGA Capital Trust III and IV
-- "bbb" on trust preferred

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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