Rating agency A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ and issuer credit ratings (ICR) of “aa-" of RGA Reinsurance Company and RGA Life Reinsurance Company of Canada. A.M. Best also has affirmed the ICR of “a-" and the debt ratings of the existing debt securities and indicative ratings of Reinsurance Group of America Incorporated (RGA). The outlook for all ratings is stable. A.M. Best acknowledges RGA’s strong franchise position and client retention in the North American market, which accounted for 73% of its 2008 pre-tax operating income. The company is expected to grow at the rate of 7–9% in traditional North American markets going forward. Reinsurance Group’s international expansion also insulates it from earnings volatility. The high growth rate is further expected in international markets, with double-digit growth coming from the Asia-Pacific region. The company has maintained adequate capital levels....

On Jul 27, 2009, Reinsurance Group of America (RGA) reported its second quarter 2009 results. Followed by a tough first quarter, reported earnings were $2.10 per share, compared with $1.73 last year. Excluding items, earnings came in at $1.79 per share, compared with $1.71 in the prior year period.   Results beat our expectations of $1.45 per share; consensus expected $1.39.   Net premiums increased modestly by 1.22% to $1.38 billion. Net investment income was $284.6 million, up from $254.8 million last year. Book value was $45.90 per share, compared with $45.04 last year.   Looking forward, we believe certain factors will affect RGA’s business in the medium term. Firstly, the aging population in North America is seeing increased demand for financial products among Baby Boomers. This trend is likely to result in continuing demand for annuity products and life insurance policies, larger face amount of life insurance policies ...

On June 25, 2009, Conseco, Inc. (CNO) announced the coinsurance agreement of two of its insurance companies in its Conseco Insurance Group. The insurance companies will coinsure about 104,000 non-core life insurance policies with Wilton Reassurance Company, a Minnesota reinsurance company.Management expects this transaction to increase CNO's consolidated risk-based capital ratio by 8 percentage points, along with increasing statutory capital. Since CNO's results have been suffering from reduced financial flexibility for the last few quarters, the capital-building action will bring some relief. The transaction is expected to close in 3Q09.As part of this transaction, Wilton Reassurance will pay a ceding commission of approximately $57.5 million. Also, it will coinsure and administer 100% of these policies. The insurance companies of CNO will transfer approximately $409 million in cash and policy loans and $466 million of statutory policy and other reserves to Wilton Reassurance....