Ratings agency Fitch has assigned RGA Reinsurance Company an AA-minus insurer financial strength rating on the basis of its strong market position in the life reinsurance sector in both the US and Canada.
Fitch said that while the US market was highly competitive, consolidation in recent years had resulted in firmer reinsurance prices, particularly for term insurance.
RGA Re also profited from well-diversified earnings from non-traditional product offerings, including financial reinsurance and reinsurance for asset-intensive products, such as annuities and corporate-owned life insurance.
Expansion in various other world markets should also result in increased earnings.
RGA Re's underwriting expertise and facultative focus, solid capitalisation level, good investment performance and liquid investment portfolio mitigated concerns that certain ancillary businesses or operations in certain localities had not performed within expectations resulting in their discontinuation, the agency added.
Fitch has also affirmed the A-minus long-term issuer and senior note ratings of Reinsurance Group of America, Inc (RGA) and the BBB-plus rating on Preferred Income Equity Redeemable Securities (PIERS) issued by RGA Capital Trust I. The rating outlook is stable.
