CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed Reinsurance Group of America, Inc.'s (RGA, Inc.) Issuer Default Rating (IDR) at 'A-' and RGA Reinsurance Company's (RGA US) Insurer Financial Strength (IFS) rating at 'A+'. The Rating Outlook has been revised to Negative from Stable. See a complete list of rating actions below.

The Negative Outlook reflects Fitch's concern for higher-than-expected investment losses over the next 12-18 months, which could have a material negative impact on RGA, Inc.'s capital and earnings. Fitch notes that the company has material exposure to structured securities; in particular, commercial mortgage backed securities (CMBS). The company's unrealized loss position is large relative to statutory capital and surplus, and structured securities account for over half of total unrealized losses.

The affirmation of RGA, Inc.'s ratings recognize its well-established and successful North American traditional life reinsurance operations, underwriting expertise and facultative focus, sound risk-based capitalization, liquid investment portfolio and expanding geographic diversification beyond well-established North American operations. Performance from continuing operations continues to demonstrate pricing discipline, as well as the company's strong facultative focus where pricing is less competitive.

Fitch notes an ongoing rating concern for RGA, Inc. continues to be the potential volatility in quarterly results due to mortality experience and the company's reliance on the continuing availability of affordable retrocession. At $8 million for a single life, the company's maximum retention in North America is higher than most of its peers.


RGA's statutory capitalization and financial leverage have remained consistent with ratings expectations since becoming an independent company in September 2008. RGA US's NAIC risk-based capital ratio was 321% at Dec. 31, 2008 as well as Dec. 31, 2007. RGA, Inc.'s equity-credit-adjusted leverage declined to 15.5% at Dec. 31, 2008, from 16.8% the prior year end, due to its common equity issuance of approximately $330 million in November 2008.

Fitch affirms the following with a Negative Outlook:

Reinsurance Group of America, Inc.

--IDR at 'A-';

--6.75% senior notes due Dec. 15, 2011 at 'BBB+';

--5.625% senior notes due March 15, 2017 at 'BBB+';

--6.75% million junior unsubordinated debentures due Dec. 15, 2065 at 'BBB'.

RGA Capital Trust I

--Convertible trust preferred securities (PIERS) at 'BBB'.

RGA Reinsurance Company (The)

--IFS at 'A+'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.





Fitch Ratings, Chicago

Martha M. Butler, CFA, 312-368-3191

Douglas A. Meyer, CFA, 312-368-2061

or

Media Relations:

Brian Bertsch, 212-908-0549, New York

Email: brian.bertsch@fitchratings.com

Source: Fitch Ratings