RGA Triple X Loses Ratings

Chris Westfall
Chris Westfall

A $850 million securitization sponsored by Reinsurance Group of America had its rating pulled last week in the latest round of Regulation XXX deals to meet a similar fate.

South Carolina-based Timberlake Reinsurance Company II (Timberlake Re) had its ratings withdrawn by Moody’s on December 3 as part of its push to revaluate Triple X securitizations.

Timberlake Re was is considered a special purpose reinsurer that was created to fund excess reserve requirements for blocks of business ceded by RGA Reinsurance Company.

According to Moody’s, the reinsurance agreement between RGA Re and Timberlake Re covers defined blocks of level premium term life policies subject to the Regulation XXX reserve requirements.

In May, Moody’s announced that it would withdraw the ratings on ILS structures “wrapped” by financial guarantors if the credit insurers’ rating fell below investment grade and there were no public “underlying shadow rating” to review.

The notes for Timberlake Re were insured by Ambac, which is currently rated Caa2.

According to Mood’s, Timberlake Re was rated as Baa1 in April placed under review.