A.M. Best Revises Outlook to Stable for Wilton Re

OLDWICK, N.J. March 20 (BestWire) — A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of a-” of Wilton Reinsurance Bermuda Limited (Hamilton, Bermuda), Wilton Reassurance Company (Plymouth, MN) and Wilton Reassurance Life Company of New York (Rye Brook, NY) (together known as Wilton Re).

Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICR of "a-" of Texas Life Insurance Company. The outlook for both of these ratings is stable.

The revised outlook for Wilton Re reflects A.M. Best's opinion that the impact of the current economic turmoil limits the likelihood of a rating upgrade over the intermediate term.

The ratings of Wilton Re are based upon its consistent history of profitable net premium growth, A.M. Best's belief that the company will adhere to its business plan of growing largely through reinsuring life books of business and A.M. Best's expectation that Wilton Re will maintain strong risk-adjusted capitalization levels. In A.M. Best's view, Wilton Re's current risk-adjusted capital position is more than adequate to support its existing business.

Constraining the ratings are the adverse financial market conditions that potentially pressure Wilton Re's earnings and capital position due to realized and unrealized losses, the continuing need to finance the company's business plan with new capital and its brief operating history. A.M. Best believes that any capital raising initiatives in the current economic environment will be very challenging; thus, limiting Wilton Re's ability to acquire an above average volume of new business.

Texas Life was acquired from MetLife, Inc. in March 2009. Texas Life, with a distribution presence in 49 states, focuses on the selling of simplified universal life and whole life policies primarily to the educational workplace market through independent distributors.

Texas Life's ratings reflect the solid capitalization and lengthy history of profitable operations.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at http://www.ambest.com/ratings/methodology. BN-NJ-03-20-2009 1147 ET #

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