Moody's rates Reinsurance Group note Baa1

Moody's Investors Service said it assigned a Baa1 rating to Reinsurance Group of America, Inc.'s $300 million fixed-rate senior unsecured notes due 2017.

The outlook is stable.

The agency expects that the proceeds of the senior unsecured debt issue will be used to repay $50 million of debt under a bank credit facility and for general corporate purposes.

The company's Baa1 senior debt rating reflects its strong market position in the North American life reinsurance industry, its status as a key player in facultative reinsurance and its expertise in managing mortality risk as demonstrated by the company's performance in its core domestic operations, Moody's said. The ratings also benefit from implicit support from MetLife, which currently owns 53% of Reinsurance Group's outstanding shares.

Moody's said the company's strengths are somewhat offset by the relatively higher volatility in reinsurance results, by RGA Reinsurance Co.'s low statutory earnings, partly driven by statutory strain related to growth, and by the company's exposure to catastrophic risks and terrorist events.

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