Wilton Re Completes Acquisition of Conseco Life Insurance Company from CNO Financial

Wilton Re Completes Acquisition of Conseco Life Insurance Company from CNO Financial

July 1, 2014

(Wilton, Connecticut) – Today, Wilton Re completed the acquisition of Conseco Life Insurance Company (“CLIC”) from CNO Financial Group (“CNO”). Wilton Re’s U.S. operating company, Wilton Reassurance Company, has acquired 100% of the common stock of CLIC, a wholly owned subsidiary of CNO consisting of traditional and interest sensitive life insurance policies and deferred annuities in runoff.  The business has over $3.4 billion of statutory reserves.  Wilton Re will transfer all operations for the business to its administrative services platform after a transition period.  As part of the agreement, Bankers Life and Casualty Company (“Bankers Life”), one of CNO’s wholly owned life insurance subsidiaries, has recaptured $160 million of traditional life reserves previously reinsured to Wilton Re.

Chris Stroup, Chairman and CEO of Wilton Re said, “We are pleased to serve CNO and the policyholders of CLIC with this important transaction.  Wilton Re’s In Force Solutions are designed to provide companies with complete and safe exits of underperforming and non-core business, and our administration platform provides a high standard for continuing service to affected policyholders.”

Following the announcement, Fitch Ratings upgraded the Insurer Financial Strength Rating (IFS) of Conseco Life Insurance Company to ‘A+’ from ‘BB+’. Fitch stated that it views CLIC as being ‘core’ to its new owner based on the application of Fitch’s group rating methodology and as such, has equalized the ratings. Fitch rates Wilton Re’s IFS at ‘A+’.

The full press release from Fitch can be accessed here.

On July 8, A.M. Best also upgraded the financial strength rating to “A” (Excellent) from “B-”  (Fair) and the issuer credit rating to “a” from “bb-”of Conseco Life Insurance Company. The ratings have been removed from under review with positive implications and assigned a stable outlook. A.M. Best notes that the rating upgrade reflects the financial strength and ability of Wilton Re to support CLIC, if necessary. The transaction adds further scale to Wilton Re’s liability profile while maintaining its focus on mortality risk and is in line with Wilton Re’s core administrative reinsurance capabilities.

The full press release from A.M. Best can be accessed here.

Fitch Upgrades Wilton Re On CPPIB Acquisition

Fitch Upgrades Wilton Re On CPPIB Acquisition

June 30, 2014

(Wilton, Connecticut) – Today, Fitch Ratings upgraded the Insurer Financial Strength (IFS) ratings of Wilton Re following the closing of the acquisition of the company by Canada Pension Plan Investment Board (“CPPIB”). The ratings apply to Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company (together 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 Outlook is Stable.
Fitch views the transaction as a credit positive for Wilton Re since it affirms the long-term ownership structure of the company and improves the company’s financial flexibility. Fitch notes that CPPIB views the U.S. life insurance market as a long-term investment opportunity and 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.

The full press release from Fitch can be accessed here.

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

Canada Pension Plan Investment Board Completes Acquisition of Wilton Re

Canada Pension Plan Investment Board Completes acquisition of Wilton Re

June 30, 2014

(Wilton, Connecticut)  Today, Canada Pension Plan Investment Board (“CPPIB”) completed the acquisition of Wilton Re Limited Holdings (“Wilton Re”) and its subsidiaries for total cash and consideration of US$1.8 billion.  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.

“We are excited to be a part of the CPPIB organization.  CPPIB is a strategic owner who is committed to Wilton Re’s business model.  As an AAA rated, long-term investor with unparalleled capital resources, CPPIB will position Wilton Re for growth and enhance our service offering to clients and policyholders.  Combining Wilton Re’s industry-leading expertise in In Force Solutions and middle market insurance services with the capital resources and ratings strength of CPPIB will further enhance our competitiveness in the market,” said Chris Stroup, Chairman and CEO.  “CPPIB is committed to the entrepreneurial approach at Wilton Re and to the firm’s management and employees.  The executive team at Wilton Re is investing alongside CPPIB in the transaction, and we expect continuity among the existing management team members.”

There are no anticipated changes to Wilton Re’s sales and service organization.  Wilton Re’s operations and policyholder services in Wilton, CT, Nashville, TN, and Waco, TX will remain unaffected by the acquisition, and our clients and policyholders will continue to receive high levels of professional sales support and administrative services.

For more information about CPPIB, visit www.cppib.com