AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of Bermudian-based RGA Americas Reinsurance Company Ltd and other subsidiaries of Reinsurance Group of America Inc.

The ratings agency also affirmed the long-term ICR of “a-” (Excellent) and all existing long-term issue credit ratings on the debt securities and indicative shelf ratings of Reinsurance Group of America.

The outlook of these credit ratings is stable.

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

RGA’s balance sheet strength remains at the very strong level underpinned by its consolidated risk-adjusted capitalisation, which has consistently been at the strongest level, as measured by Best’s capital adequacy ratio.

The group’s liquidity measures remain stable, and its financial leverage remains well within AM Best’s guidelines for the current ratings. In addition, RGA maintains a high-quality investment portfolio, which has experienced only a modest amount of impairments during the past several years.

AM Best said: “RGA also benefits from its leading market positions in the United States, Canada, Europe and Asia, with approximately half of its revenue coming from international operations.

“Overall premiums have increased steadily in recent years. Premium growth has been driven by growth in all of the group’s geographic areas.

“RGA’s extensive risk management framework, which includes a strong focus on operational and strategic risks, in addition to performing stress testing and continual monitoring of risks, are key factors in its very strong ERM assessment.”

The agency added: “Partially offsetting these positive rating factors is the volatility of earnings in recent periods within certain core segments, including its US individual mortality segment, which was primarily driven by the adverse mortality impacts of the Covid-19 pandemic. RGA’s mortality experience has improved since 2022.

“Earnings generated from RGA’s other core businesses generally have been increasing. The mortality losses were partially offset by profits in the longevity business.

“RGA also has increased its exposure to higher-risk product lines, including annuities and longevity reinsurance, and it maintains a moderate-sized block of long-term care business that may add to its operating volatility over the mid-to-long term.”