OLDWICK, N.J.–(BUSINESS WIRE)–AM Best affirmed on June 27, 2019, the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of the life/health subsidiaries of Wilton Re Ltd (Nova Scotia, Canada), collectively known as Wilton Re. AM Best also affirmed on June 27, 2019, the Long-Term ICRs of “a-” of Wilton Re Ltd and Wilton Re Finance LLC (Wilton Re Finance) (Delaware), as well as the Long-Term Issue Credit Rating of “a-” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance. The notes are unconditionally guaranteed by its parent companies, Wilton Re U.S. Holdings, Inc. and Wilton Re Ltd (See below for a detailed listing of these companies and ratings). The outlook of the Credit Ratings (ratings) is stable.
The ratings reflect Wilton Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The ratings also reflect Wilton Re’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), continued strong operating earnings and disciplined growth strategy. The ratings also recognize the ongoing commitment by the company’s highly rated ultimate parent, Canada Pension Plan Investment Board (CPPIB), to provide capital to Wilton Re in support of future growth. While Wilton Re’s operations generate significant capital, which can be deployed to fund growth, AM Best believes that CPPIB would provide additional funding if needed. AM Best views positively Wilton Re’s continued strategy of closed block acquisitions, as it enhances the embedded value of the organization, and its future earnings and capital generation capabilities.
Partially offsetting these positive rating attributes is the impact of the continued low interest rate environment, which has modestly affected earnings on fixed income investments. Other offsetting rating factors include potential execution risks and competition associated with acquiring larger blocks of business.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with a stable outlook for the following life/health subsidiaries of Wilton Re Ltd:
- Wilton Reinsurance Bermuda Limited
- Wilton Reassurance Company
- Texas Life Insurance Company
- Wilton Reassurance Life Company of New York
- Wilcac Life Insurance Company
- Wilco Life Insurance Company
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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