Fitch Upgrades Conseco Life Insurance Company's IFS Rating; Outlook Stable

CHICAGO--()--Fitch Ratings has upgraded Conseco Life Insurance Company's (Conseco Life) Insurer Financial Strength (IFS) rating to 'A+' from 'BB+'. The Outlook is Stable.

KEY RATING DRIVERS

The rating was placed on Rating Watch Positive on March 3, 2014 following the announcement by CNO Financial that the company signed a definitive agreement to sell 100% of the common stock of Conseco Life, a wholly owned subsidiary, to Wilton Reassurance Company (Wilton Re).

The upgrade reflects the announcement that the Conseco Life sale to Wilton Re has been finalized. Fitch views Conseco Life 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+'.

RATING SENSITIVITIES

Fitch considers an upgrade of Conseco Life's ratings in the near to intermediate term unlikely.

Key rating triggers for Conseco Life's ratings that could lead to a negative rating action include:

--A change in Fitch's view of Conseco Life's strategic importance to Wilton Re;

--Maintenance of operating metrics consistent with Wilton Re's rating triggers.

Fitch upgrades the following:

Conseco Life Insurance Company

--Insurer Financial Strength to 'A+' from 'BB+'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (November 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=837536

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Contacts

Fitch Ratings
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 Butler, CFA
Senior Director
+1-312-368-3191
or
Media Relations
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com

Contacts

Fitch Ratings
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 Butler, CFA
Senior Director
+1-312-368-3191
or
Media Relations
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com