MARCH 24, 2014 03:19 PM (EDT)
A.M. Best Comments on the Sale of Wilton Re Holdings Limited and Its Insurance Subsidiaries
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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 24, 2014 03:19 PM (EDT)
A.M. Best has commented that the ratings of Wilton Re Holdings Limited (Wilton Re) (Hamilton, Bermuda) and its insurance subsidiaries remain unchanged following Wilton Re's recent announcement that it has entered into a definitive agreement for the sale of 100% of its outstanding stock to the Canada Pension Plan Investment Board (CPPIB) and Wilton Re management.
CPPIB is a professional investment manager for the Canada Pension Plan which reported assets of CAD 201.5 billion at year-end 2013. Adding Wilton Re as CPPIB's first sizable direct insurance investment further diversifies CPPIB's asset portfolio while providing strong and predictable returns as a strategic investment. Wilton Re is expected to benefit from the large asset base of CPPIB, which would be available to fund future Admin Re transactions. The acquisition--with a purchase price of $1.8 billion--is subject to regulatory approvals.
Following the acquisition, A.M. Best expects no change in Wilton Re's business profile, senior management or capitalization. However, A.M. Best will continue to review the integration and any potential business impact until the acquisition is finalized.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.