Fitch Upgrades Wilton Reinsurance’s Ratings
Fitch Ratings has upgraded the Insurer Financial Strength [IFS] ratings of Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company [collectively referred to as Wilton Re] to ‘A+’ from ‘A’ as well as the long-term Issuer Default Rating [IDR] of Wilton Re Holdings Limited to ‘A-’ from ‘BBB+’. The Rating Outlook is Stable.
Fitch said it “placed Wilton Re on Rating Watch Positive on March 21, 2014, following the company’s announcement that Canada Pension Plan Investment Board [CPPIB] would be acquiring the stock of Wilton Re Holdings Limited, the privately held holding company which owns Wilton Re. The transaction closed yesterday.
“Fitch views the transaction as a credit positive for Wilton Re since it removes uncertainty regarding the long-term ownership structure of the company and improves the company’s financial flexibility. Based on the application of Fitch’s group rating methodology, the agency classifies Wilton Re as a non-core subsidiary of CPPIB; however, Fitch notes that CPPIB views the U.S. life insurance market as a long-term investment opportunity. Fitch expects Wilton Re will continue its strategic focus on U.S. life insurance and its disciplined approach toward new business opportunities which has resulted in its strong operating performance.”
