A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries
May 31, 2013
On May 31, 2013, A.M. Best Co. affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Wilton Reinsurance Bermuda Ltd. (Hamilton, Bermuda), Wilton Reassurance Company (Minneapolis, MN), Texas Life Insurance Company (Waco, TX), Heritage Union Life Insurance Company (headquartered in Wilton, CT) and Wilton Reassurance Life Company of New York (Rye Brook, NY), collectively referred to as Wilton Re.
Additionally, A.M. Best has affirmed the ICR of “bbb” of Wilton Re Holdings Limited (Hamilton, Bermuda) and the ICR and debt ratings of “bbb” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance, LLC (Wilton Re Finance) (Delaware). The notes are unconditionally guaranteed by its parent, Wilton Re U.S. Holdings, Inc. (Delaware), and the ultimate parent, Wilton Re Holdings Limited. A.M. Best notes that Wilton Re Holdings Limited’s adjusted financial leverage and interest coverage are within A.M. Best’s expectations. The outlook for all ratings is stable.
The rating affirmations of Wilton Re reflect its solid risk-adjusted capitalization levels, strong statutory and GAAP returns, favorable liquidity and high quality balance sheet, which are principally focused on mortality risk. Additionally, the ratings reflect the diversification of Wilton Re’s distributable earnings, which is focused on three core segments: Inforce Solutions, New Business Solutions and Primary Insurance through its operating subsidiary, Texas Life Insurance Company. Wilton Re has historically grown its business through an acquisition-oriented strategy with an emphasis on inforce solutions, primary insurance and new business solutions for the middle market. This focus has contributed to its favorable GAAP earnings growth and operating efficiencies in recent years. The full press release can be accessed here
Chris C. Stroup, Chairman and CEO, said, “We are pleased with A.M. Best’s decision to affirm the ‘A’ ratings of Wilton Re. Wilton Re has demonstrated a reliable approach to capital management and building shareholder value while serving the U.S. life insurance market. We continue to provide creative solutions to the industry backed by our significant capital resources and expertise.”