(August 4 – 15:50 ET) – A.M. Best Co. said it assigned a financial strength rating of A (Excellent) to RGA Life Reinsurance Co. of Canada.
The rating recognizes RGA’s role as a core subsidiary of
Reinsurance Group of America Inc., the company’s
overall successful business strategy and the financial strength of
the ultimate majority shareholder, Metropolitan Life Insurance
Co., the New Jersey-based rating firm said.
“The rating also recognizes the company’s focused business
plan, favourable risk-adjusted capital position and the strength
and support through reinsurance agreements and capital
contributions from its affiliation with RGA.”
A.M. Best also said it downgraded the financial
strength rating of Toronto-bsaed Coachman Insurance Co. to B++
(Very Good) from A- (Excellent).
“The rating action reflects the company’s above average
underwriting leverage, increased loss ratio as well as concern
regarding the ongoing financial support of its parent company,
Queensway Financial Holdings,” it said.
“As a result of continued growth in premium volume combined with a
decrease in surplus, the company has experienced an increase in
its already high underwriting leverage. The company’s capital and
surplus have steadily decreased in both 1998 and 1999 as a result
of dividend distributions, underwriting losses and increased
reserves.”
– IE Staff.