Best’s News & Research Service - August 02, 2018 12:14 PM (EDT)
A.M. Best Comments on Credit Ratings of Wilton Reassurance Company and Its Subsidiaries Following Announced Transaction
- August 02, 2018 12:14 PM (EDT)
Oldwick //BestWire// - A.M. Best has commented that the Credit Ratings of Wilton Reassurance Company (Wilton Re) (Minneapolis, MN) and its insurance subsidiaries remain unchanged following the Aug. 1, 2018, announcement that Wilton Re has reached a definitive agreement to reinsure a $2.7 billion block of long-term care (LTC) insurance policies issued by Bankers Life and Casualty Company (Bankers Life) (Chicago, IL). The outlooks of these Credit Ratings (ratings) remain stable.
Under the terms of the agreement, Wilton will assume 100% of the LTC claims for the block reinsured from Bankers Life. This is Wilton Re’s first LTC transaction. While the impact to Wilton Re’s balance sheet is material given the size of the acquired blocks, A.M. Best notes that pro-forma risk-adjusted capitalization will remain supportive of Wilton Re’s current ratings. The transaction is expected to close in the third quarter of 2018, pending regulatory approval and other customary closing conditions.
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