AM Best Assigns Credit Ratings to Wilton Re Overseas Limited

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior) to Wilton Re Overseas Limited (WROL) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable. The entity is being added as a member of the Wilton Re Group and the stable credit profile of and ongoing support by the company’s ultimate parent, Canada Pension Plan Investment Board (CPP Investments), also support the group rating.

The ratings reflect WROL’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings of the Wilton Re Group are extended to WROL due to the subsidiary’s full integration into the group’s operations and management as it follows the same operating model and risk profile. Additionally, the ratings are being extended to WROL because of the subsidiary’s strategic importance to the group’s North American market and the entrance into new geographical territories including Europe, as well as its expansion in Bermuda. WROL will seek life and annuity reinsurance and mergers and acquisition opportunities that support WROL’s business model, which provides solutions for clients seeking to cede or sell closed blocks of life insurance business.

WROL is targeting growth through episodic transactions. WROL closed on a $1.5 billion secondary guarantee universal life closed block of business in December 2021. This deal added to the company’s existing book of business, which includes a 25% economic and voting interest in a life settlement fund, and its investment in Clara-Pensions Group Limited. WROL is not expected to be a primary driver of the Wilton Re Group’s assets under management, but the subsidiary is expected to be a meaningful contributor to the group’s financial results over time.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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