AM Best assigns A+ FSR to Wilton Re Overseas

Credit rating agency AM Best has assigned a financial strength rating of A+ (Superior) to Wilton Re Overseas Limited (WROL). The outlook is stable and is supported by ongoing support from the company’s ultimate parent, Canada Pension Plan Investment Board.

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

The rating of the Wilton Re Group is 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 rating is 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 closed on a $1.5bn 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, AM Best said.