A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries

A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries
May 7, 2012

On May 7, 2012, 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.

In making its rating determination, A.M. Best cited Wilton Re’s solid risk adjusted capitalization levels, strong consolidated GAAP returns and high quality balance sheet. In addition, they noted that Wilton Re has built a solid reinsurance franchise and continues to successfully execute on its business strategy of providing risk and capital management solutions to U.S. life insurers. A.M. Best also attributed its rating s lower risk profile achieved by mostly focusing on stable mortality risk.

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