Ownership change triggers Wilton Re upgrade

Fitch has upgraded the insurer financial strength (IFS) ratings of Wilton Re and all its various units to A+ from A.

The units comprise: Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company. The outlook on the companies is stable.

Fitch placed Wilton Re on Rating Watch Positive in March following the company's announcement that Canada Pension Plan Investment Board (CPPIB) would be acquiring the stock of Wilton Re Holdings, the privately held holding company which owns Wilton Re. The transaction closed this week.

The rating agency said it views the transaction as a credit positive for Wilton Re since it removes uncertainty regarding the long-term ownership structure of the company and improves the company's financial flexibility.

Based on the application of Fitch's group rating methodology, the agency classifies Wilton Re as a non-core subsidiary of CPPIB; however, Fitch notes that CPPIB views the US life insurance market as a long-term investment opportunity.

Fitch says it expects Wilton Re to continue its strategic focus on US life insurance and its disciplined approach toward new business opportunities which has resulted in its strong operating performance.