Fitch and A.M. Best Comment On CPPIB Acquisition Announcement

Fitch and A.M. Best Comment on CPPIB Acquisition Announcement

March 26, 2014

(Wilton, CT) Fitch Ratings has placed the ratings of Wilton Re on Rating Watch Positive following the announcement on March 21 that Canada Pension Plan Investment Board (“CPPIB”) will be acquiring the stock of Wilton Re Holdings Limited.  The ratings announcement relates to 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), as well as the long-term Issuer Default Rating (IDR) of ‘BBB+’ of Wilton Re Holdings Limited.

Fitch stated it views the transaction as a potential 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. The full press release from Fitch can be accessed here: Fitch – Wilton Re Press Release.

A.M. Best also commented that the ratings of Wilton Re Holdings Limited and its insurance subsidiaries remain unchanged following the recent announcement. The full article from A.M. Best can be accessed here.

For more information please contact Ray Eckert at 203-762-4436 or at [email protected]

Wilton Re Announces Acquisition by Canada Pension Plan Investment Board

Wilton Re Announces Acquisition by Canada Pension Plan Investment Board

March 21, 2014

(Wilton, Connecticut)  Today, the Wilton Re Holding Limited (“Wilton Re”) board of directors announced it has entered into a definitive agreement for the sale of 100% of Wilton Re’s outstanding stock to Canada Pension Plan Investment Board (“CPPIB”), one of the fastest growing global institutional investors, and Wilton Re management.  Under the terms of the agreement the total cash consideration will be US$1.8 billion at closing.  The transaction is expected to close prior to August 2014 and is subject to customary closing conditions and regulatory approvals.

“CPPIB is an ideal owner for Wilton Re that positions the company for growth and enhances our service offerings to clients and policyholders,” said Chris Stroup, chairman and CEO, Wilton Re. “CPPIB represents the next phase for Wilton Re – a strategic owner, committed to our business model, with a very long term investment horizon and unparalleled capital resources.  Under CPPIB ownership, we anticipate the capital resources necessary to accelerate growth and expand our core In Force Solutions offerings as well as enhance our competitiveness overall.  We remain committed to our middle market customers and will continue to emphasize and expand our worksite and private labeling solutions.”

“In making a long-term investment in Wilton Re, CPPIB views the company as an ideal platform through which CPPIB can deploy significant follow-on capital at scale in the U.S. life insurance sector,” said André Bourbonnais, Senior Vice-President, Private Investments. “Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon.”

The transaction involves the 100% stock acquisition of Wilton Re Holding Limited, a Bermuda insurance holding company and all subsidiaries within the Wilton Re Group, including Wilton Reinsurance Bermuda Limited, Wilton Reassurance Company (MN), Wilton Reassurance Life Company of New York, and Texas Life Insurance Company.  CPPIB is committed to the management, employees and organization of Wilton Re, and will support management in the future growth of the Company.  Wilton Re’s operations and policyholder service in Wilton, Connecticut, Nashville, Tennessee and Waco, Texas will remain unaffected by the acquisition and policyholders will continue to receive high levels of professional administrative services.

Barclays PLC, Skadden, Arps, Slate, Meager & Flom LLP, Sutherland Asbill & Brennan LLP, and Milliman served as advisors to Wilton Re during the transaction.

Also see the CPPIB news release on the Wilton Re acquisition at

About Wilton Re

Wilton Re is headquartered in Hamilton, Bermuda and specializes in the acquisition and management of mortality and investment risk as well as with assisting life insurance clients with product development, underwriting, and new business strategies for the middle market.  Through its U.S. holding company, Wilton Re Holdings, Wilton Re focuses on the U.S. life insurance market where the company provides risk capital and related services including M&A, reinsurance and longevity risk management.  Wilton Re also partners with companies to implement new business strategies for middle market sales, with an emphasis on worksite, senior market and simplified term products.  The Company offers fully customized solutions that include private labeling with supporting delivery and administrative systems.  The company’s U.S. business is centered in Wilton Connecticut and has operations in Nashville, Tennessee and Waco Texas.  As of December 31, 2013, Wilton Re had US$8.2 billion of total assets, US$1.2 billion of operating revenue and US$1.4 billion of US GAAP equity.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries.  In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.  Headquartered in Toronto, with offices in London, Hong Kong, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.  At December 31, 2013, the CPP Fund totaled C$201.5 billion.  For more information about CPPIB, please visit


Please reference the CPPIB Acquisition FAQs for additional information.

Wilton Re Announces Acquisition of CNO’s Closed Block Life Insurance Subsidiary

Wilton Re Announces Acquisition of CNO’s Closed Block Life Insurance Subsidiary
March 3, 2014

(Wilton, CT) Today Wilton Re Holdings Limited (“Wilton Re”) announced definitive agreements to acquire Conseco Life Insurance Company (“CLIC”) from CNO Financial Group (“CNO”) for approximately $237 million in cash, subject to the actual level of statutory capital and surplus at CLIC at closing. As part of the transaction, Wilton Re’s U.S. operating company, Wilton Reassurance Company, will acquire 100% of the common stock of CLIC, a wholly owned subsidiary of CNO.

“We are very pleased to assist CNO with this important transaction,” said Chris Stroup, Chairman and CEO of Wilton Re. “Wilton Re has enjoyed a long working relationship with CNO and this In Force Solution provides them with a secure exit of the company’s closed block legacy business, which will free up capital and resources for redeployment to the company’s strategic initiatives. Wilton Re’s In Force Solutions are designed to relieve our client companies of non-strategic and low yielding businesses, so that management and their investors can focus on the fundamentals of their core business lines.”

The acquired business is primarily comprised of closed blocks of individual traditional and interest-sensitive life insurance policies and deferred annuities. Wilton Re will acquire $3.4 billion of statutory reserves in the transaction, and transfer all operations of the business to its administrative services platform after an agreed upon transition period. “As part of the agreement, Bankers Life and Casualty Company (“Bankers Life”), a wholly owned life insurance subsidiary, will recapture $160 million of traditional life reserves previously reinsured to Wilton Re, paying approximately $28 million.”

The closing of the transaction remains subject to customary closing conditions and certain regulatory approvals, and is expected to occur in the second quarter of 2014.

Sutherland Asbill & Brennan and Locke Lord LLP acted as advisors to Wilton Re on the acquisition.

Also visit for additional information on the transaction.