A.M. Best Revises Outlook to Positive From Stable for Wilton Reinsurance Bermuda Limited and Its Affiliates

OLDWICK, N.J. April 06 (BestWire) — A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of a-” of Wilton Reinsurance Bermuda Limited (Hamilton, Bermuda) and its affiliates, Wilton Reassurance Company (Plymouth, MN), Wilton Reassurance Life Company of New York (Rye Brook, NY) and Texas Life Insurance Company (Texas Life) (Waco, TX) (together known as Wilton Re).

The revised outlook for Wilton Re reflects the continued successful execution of its business plan with continued acquisition activity such as the purchase of Texas Life in 2009. In addition, Wilton Re has weathered the economic crisis well, generating favorable GAAP earnings and raising new equity capital in a very difficult market. Moreover, Wilton Re has no financial leverage.

The affirmation of Wilton Re’s ratings are based upon its consistent history of profitable 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 addition, the recent acquisition of Texas Life allows Wilton Re to enter into an established and developed direct market with ongoing new premium generation through a writer that has solid capitalization and a history of profitable operations. In A.M. Best’s view, Wilton Re’s current risk-adjusted capital position is more than adequate to support its existing business.

Offsetting rating factors are Wilton Re’s relatively smaller size in the life reinsurance industry, increased competition in traditional reinsurance pricing and the continued need to finance the company’s business plan with either distributable earnings, operational or financial leverage or new equity capital. A.M. Best believes that the current economic environment and competitive landscape remains challenging, and thus may limit Wilton Re’s ability to meet its business growth objectives.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at https://www.ambest.com/ratings/methodology BN-NJ-04-06-2010 1201 ET #

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