News Column

Fitch: Wilton Re's Ratings Unchanged following Acquisition Announcement

February 10, 2014



CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has taken no rating action on Wilton Reassurance Company or any of its subsidiaries (collectively Wilton Re) following today's announcement that the company signed a definitive agreement to acquire 100% of the common stock of Continental Assurance Company, a wholly owned subsidiary of CNA Financial Corporation (CNA).

As part of the agreement, Wilton Re will acquire $2.5 billion of in-force structured settlement and group annuity statutory reserves and transfer all operations of the business to its administrative services platform. The transaction is expected to close in the second quarter of 2014, subject to customary closing conditions and regulatory approvals. Wilton Re expects to finance the transaction with internal resources.

Fitch views this transaction as in line with management's strategy to increase its longevity risk, which offers diversification benefits for its mortality risk. Fitch believes the inherent execution and integration risk associated with the CNA transaction are partially mitigated by Wilton Re's successful track record of acquiring seasoned blocks of business.

Fitch has taken no action on the following ratings:

Wilton Reassurance Company

Wilton Reinsurance Bermuda Limited

Wilton Reassurance Life Company of New York

Texas Life Insurance Company

--IFS 'A'; Outlook Stable.

Wilton Re Holdings Limited

--Long-term IDR 'BBB+'; Outlook Stable.

Wilton Re Finance LLC

--5.875% senior notes due March 30, 2033 'BBB'.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology', dated Nov. 13, 2013.

Applicable Criteria and Related Research:

Insurance Rating Methodology -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723072

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Media Relations

Brian Bertsch, New York

Tel: +1 212-908-0549

Email: brian.bertsch@fitchratings.com

or

Primary Analyst

Tana M. Higman

Director

+1-312-368-3122

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Secondary Analyst

Douglas L. Meyer, CFA

Managing Director

+1-312-368-2061

or

Committee Chairperson

Martha M. Butler, CFA

Senior Director

+1-312-368-3191


Source: Fitch Ratings


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