Fitch Affirms Wilton Re’s Ratings; Outlook Stable

Fitch Affirms Wilton Re’s Ratings; Outlook Stable

October 8th, 2015

Fitch Ratings has affirmed the ‘A+’ Insurer Financial Strength (IFS) ratings of Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York, Texas Life Insurance Company, and Conseco Life Insurance Company (collectively referred to as Wilton Re). Fitch has also affirmed the longterm Issuer Default Rating (IDR) of Wilton Re Ltd. at ‘A-‘. A complete list of rating actions is provided at the end of the release. The Rating Outlook is Stable.

The full press release from Fitch can be accessed here.

Wilton Re Completes Acquisition of Transamerica Life Canada

Wilton Re Completes Acquisition of Transamerica Life Canada

July 31, 2015

(Wilton, Connecticut) Today, Chris Stroup, Chairman and CEO of Wilton Re, confirmed the successful completion of the sale of Transamerica Life Canada to Wilton Re. The previously announced sale consists of Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient, Inc.

In the coming months, Transamerica Life Canada will be undergoing a rebranding that will provide a unique, fresh identity for the Canadian market. Along with rebranding, this change is an opportunity to continue to offer valuable choices for the middle market in the Canadian insurance marketplace.

About Transamerica Life Canada

Transamerica Life Canada is one of Canada’s leading individual life insurance providers. Through a national network of independent distributors and advisors, Transamerica Life Canada helps people protect their families and plan for their financial future.

In 2014, Transamerica Life Canada had $966 million in gross premium revenue and by the end of the year the Company had $11.2 billion in total assets under management.

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

April 24, 2015

(Wilton, CT)  A.M. Best has upgraded the issuer credit ratings (ICR) to “a+” from “a” and affirmed the financial strength rating of A (Excellent) of Wilton Reinsurance Bermuda Limited (Bermuda), Wilton Reassurance Company (Minneapolis, MN), Texas Life Insurance Company (Waco, TX), Heritage Union Life Insurance Company (headquartered in Wilton, CT), Wilton Reassurance Life Company of New York (Rye Brook, NY), Wilcac Life Insurance Company (formerly known as Continental Assurance Company) (Chicago, IL) and Conseco Life Insurance Company (Carmel, IN), collectively referred to as Wilton Re. The outlook for all ratings is stable.

Additionally, A.M. Best has upgraded the ICRs to “bbb+” from “bbb” of Wilton Re Ltd (Nova Scotia, Canada) and Wilton Re Finance, LLC (Wilton Re Finance) (Delaware), as well as the debt rating to “bbb+” from “bbb” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance. The notes are unconditionally guaranteed by its parent, Wilton Re U.S. Holdings, Inc. (Delaware) and the ultimate parent, Wilton Re Ltd.  A.M. Best notes that Wilton Re Ltd’s adjusted financial leverage and interest coverage are within A.M. Best’s expectations. The outlook for these ratings is stable and can be accessed here.

The rating upgrades reflect Wilton Re’s solid risk-adjusted capitalization level, its recent increased transaction activity, strong operating earnings and high quality balance sheet and liability structure, which are principally focused on mortality risk. Also recognized is the ongoing commitment by the new ultimate parent, Canada Pension Plan Investment Board (CPPIB), to provide capital to Wilton Re in support of continued growth.

Wilton Re Announces the Agreement to Acquire Transamerica Businesses in Canada from Aegon N.V.

Wilton Re Announces the Agreement to Acquire Transamerica Businesses in Canada from Aegon N.V.

October 16, 2014

(Wilton, Connecticut) Today, the board of directors of Wilton Re Ltd (“Wilton Re”) announced the execution of definitive agreements to acquire the majority of the Aegon N.V. operations in Canada for C$600 million, consisting of Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient, Inc. (“Transamerica Canada Business”). Wilton Re will fund the transaction with additional equity capital provided by its parent, Canada Pension Plan Investment Board.

Chris Stroup, Chairman and CEO of Wilton Re, said, “We are delighted to work on this important transaction with Aegon. Wilton Re views the acquisition of the Transamerica Canada businesses as well-aligned with our strategy to provide risk and capital solutions to clients throughout North America. Wilton Re is committed to the middle market, and Transamerica Canada is well positioned to serve the middle market in Canada. We intend to support the profitable growth of this business.”

“We are excited about the future of our business and look forward to working with Wilton Re to provide solutions for the long term financial protection of middle market families in the Canadian life insurance marketplace,” said Transamerica Canada President and CEO, Doug Brooks.

The acquired insurance business includes a C$10.6 billion portfolio of high quality assets as of September 30, 2014, and is comprised of individual life, annuity and segregated funds policies as well as credit insurance products. In addition, Wilton Re will acquire Aegon Capital Management, an investment manager, and Aegon Fund Management, a mutual fund company. No significant changes to business operations are expected.

The consummation of the transaction is subject to customary closing conditions and certain regulatory approvals, and is expected to occur in the first quarter of 2015.

UBS, Torys LLP, Deloitte, Milliman and AlixPartners acted as advisors to Wilton Re on the acquisition.

About Wilton Re

Wilton Re 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. Wilton Re focuses on the North American 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. As of September 30, 2014, Wilton Re had US$14.5 billion of total assets, US$1.4 billion of annual operating revenues and US$1.5 billion of US GAAP equity.

About Transamerica Canada’s Insurance Business

Transamerica Life Canada (“TLC”) is one of Canada’s leading individual life insurance providers. Through a national network of independent distributors and advisors, TLC helps Canadians protect their families and plan for their financial futures. The Company has a significant block of in force traditional and interest-sensitive life insurance policies, deferred and single premium immediate annuities, as well as a closed block of segregated funds policies. In 2013, TLC had more than C$680 million in gross life premium revenue and at the end of the year the Company had more than 538,000 policies in‐force with more than C$173 billion of insurance coverage.

In its affinity business, Transamerica Canada also provides group coverage for credit cards and to credit union members through its other two insurance companies: Canadian Premier Life and Legacy General Insurance Company. Related companies include CRI Canada, an insurance agency, as well as Selient, Inc., a technology company offering loan origination software to credit unions. Total gross premium revenue in Transamerica’s affinity business in 2013 was C$284 million.

For more information, please visit www.transamerica.ca

Wilton Re Completes Acquisition of Continental Assurance Company from CNA Financial Corporation

Wilton Re Completes Acquisition of Continental Assurance Company from CNA Financial Corporation

August 1, 2014

(Wilton, Connecticut) – Today, Wilton Re completed the previously announced acquisition of Continental Assurance Company (“CAC”) from CNA Financial Corporation (“CNA”).  Wilton Re will transfer a majority of the operations for the business to its administrative services platform after a transition period.  As part of the transaction, an affiliate will reinsure a block of run-off structured settlements from a Bermuda-based subsidiary of CNA.  “Wilton Re is a leader in In Force Solutions to the life insurance industry” said Chris Stroup, Chairman and CEO. “We have significant capacity to provide companies with solutions for their largest and most complex issues and our administration platform provides high standards of service to policyholders and agents. We look forward to serving the policyholders of Continental Assurance Company.”

On August 1, 2014, A.M. Best  also upgraded the financial strength rating to “A” (Excellent) from “A-“ (Excellent) and the issuer credit rating to “a” from “a-“ of Continental Assurance Company.  The ratings have been removed from under review with developing 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 CAC, if necessary. The transaction adds further scale to Wilton Re’s liability profile and also contributes to the company’s focus on managing run-off blocks of business and is in line with Wilton Re’s core administrative reinsurance capabilities.

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

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

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 

April 25, 2014

(Wilton, CT)    A.M. Best has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Wilton Reinsurance Bermuda Ltd., 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 ICRs of “bbb” of Wilton Re Holdings Limited and Wilton Re Finance, LLC (Wilton Re Finance) (Delaware) as well as the debt rating of “bbb” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance. 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. The full press release can be accessed here.

The rating affirmations for Wilton Re reflect its solid risk-adjusted capitalization level, its recent increased transaction activity, strong operating earnings and high quality balance sheet and liability structure. Wilton Re has grown its business through an acquisition-oriented strategy with an emphasis on in-force solutions, primary insurance and business solutions for both smaller and larger organizations. This focus has contributed to its favorable operating earnings and efficiencies in recent years. This trend continues in 2014 with the recently announced acquisitions of Continental Assurance Company from CNA Financial Corporation and Conseco Life Insurance Company from CNO Financial Group, Inc. A.M. Best expects Wilton Re to remain adequately capitalized as these new transactions will be funded through excess capital deployment.

The company also announced this year that Wilton Re Holdings Limited will be acquired by the Canada Pension Plan Investment Board (CPPIB). Following the acquisition, A.M. Best expects no variation in Wilton Re’s operating profile or senior management.

Chris C. Stroup, Chairman and CEO, said, “The CPPIB acquisition strengthens our proposition for clients and positions Wilton Re for significant growth. CPPIB is a ‘AAA’ rated, long-term investor with significant capital resources that will be deployed to expand Wilton Re’s industry-leading in force solutions and new business offerings to the middle market.  We believe this acquisition will enhance the scale of the Wilton Re platform and allow us to continue to assist our clients in the U.S. life insurance industry with their most complex, strategic  issues.”

 

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]