Wilton Re Announces Acquisition by Canada Pension Plan Investment Board

Wilton Re Announces Acquisition by Canada Pension Plan Investment Board

March 21, 2014

(Wilton, Connecticut)  Today, the Wilton Re Holding Limited (“Wilton Re”) board of directors announced it has entered into a definitive agreement for the sale of 100% of Wilton Re’s outstanding stock to Canada Pension Plan Investment Board (“CPPIB”), one of the fastest growing global institutional investors, and Wilton Re management.  Under the terms of the agreement the total cash consideration will be US$1.8 billion at closing.  The transaction is expected to close prior to August 2014 and is subject to customary closing conditions and regulatory approvals.

“CPPIB is an ideal owner for Wilton Re that positions the company for growth and enhances our service offerings to clients and policyholders,” said Chris Stroup, chairman and CEO, Wilton Re. “CPPIB represents the next phase for Wilton Re – a strategic owner, committed to our business model, with a very long term investment horizon and unparalleled capital resources.  Under CPPIB ownership, we anticipate the capital resources necessary to accelerate growth and expand our core In Force Solutions offerings as well as enhance our competitiveness overall.  We remain committed to our middle market customers and will continue to emphasize and expand our worksite and private labeling solutions.”

“In making a long-term investment in Wilton Re, CPPIB views the company as an ideal platform through which CPPIB can deploy significant follow-on capital at scale in the U.S. life insurance sector,” said André Bourbonnais, Senior Vice-President, Private Investments. “Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon.”

The transaction involves the 100% stock acquisition of Wilton Re Holding Limited, a Bermuda insurance holding company and all subsidiaries within the Wilton Re Group, including Wilton Reinsurance Bermuda Limited, Wilton Reassurance Company (MN), Wilton Reassurance Life Company of New York, and Texas Life Insurance Company.  CPPIB is committed to the management, employees and organization of Wilton Re, and will support management in the future growth of the Company.  Wilton Re’s operations and policyholder service in Wilton, Connecticut, Nashville, Tennessee and Waco, Texas will remain unaffected by the acquisition and policyholders will continue to receive high levels of professional administrative services.

Barclays PLC, Skadden, Arps, Slate, Meager & Flom LLP, Sutherland Asbill & Brennan LLP, and Milliman served as advisors to Wilton Re during the transaction.

Also see the CPPIB news release on the Wilton Re acquisition at www.cppib.com.

About Wilton Re

Wilton Re is headquartered in Hamilton, Bermuda and specializes in the acquisition and management of mortality and investment risk as well as with assisting life insurance clients with product development, underwriting, and new business strategies for the middle market.  Through its U.S. holding company, Wilton Re Holdings, Wilton Re focuses on the U.S. life insurance market where the company provides risk capital and related services including M&A, reinsurance and longevity risk management.  Wilton Re also partners with companies to implement new business strategies for middle market sales, with an emphasis on worksite, senior market and simplified term products.  The Company offers fully customized solutions that include private labeling with supporting delivery and administrative systems.  The company’s U.S. business is centered in Wilton Connecticut and has operations in Nashville, Tennessee and Waco Texas.  As of December 31, 2013, Wilton Re had US$8.2 billion of total assets, US$1.2 billion of operating revenue and US$1.4 billion of US GAAP equity.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries.  In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.  Headquartered in Toronto, with offices in London, Hong Kong, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.  At December 31, 2013, the CPP Fund totaled C$201.5 billion.  For more information about CPPIB, please visit www.cppib.com.

 

Please reference the CPPIB Acquisition FAQs for additional information.

Wilton Re Announces Acquisition of CNO’s Closed Block Life Insurance Subsidiary

Wilton Re Announces Acquisition of CNO’s Closed Block Life Insurance Subsidiary
March 3, 2014

(Wilton, CT) Today Wilton Re Holdings Limited (“Wilton Re”) announced definitive agreements to acquire Conseco Life Insurance Company (“CLIC”) from CNO Financial Group (“CNO”) for approximately $237 million in cash, subject to the actual level of statutory capital and surplus at CLIC at closing. As part of the transaction, Wilton Re’s U.S. operating company, Wilton Reassurance Company, will acquire 100% of the common stock of CLIC, a wholly owned subsidiary of CNO.

“We are very pleased to assist CNO with this important transaction,” said Chris Stroup, Chairman and CEO of Wilton Re. “Wilton Re has enjoyed a long working relationship with CNO and this In Force Solution provides them with a secure exit of the company’s closed block legacy business, which will free up capital and resources for redeployment to the company’s strategic initiatives. Wilton Re’s In Force Solutions are designed to relieve our client companies of non-strategic and low yielding businesses, so that management and their investors can focus on the fundamentals of their core business lines.”

The acquired business is primarily comprised of closed blocks of individual traditional and interest-sensitive life insurance policies and deferred annuities. Wilton Re will acquire $3.4 billion of statutory reserves in the transaction, and transfer all operations of the business to its administrative services platform after an agreed upon transition period. “As part of the agreement, Bankers Life and Casualty Company (“Bankers Life”), a wholly owned life insurance subsidiary, will recapture $160 million of traditional life reserves previously reinsured to Wilton Re, paying approximately $28 million.”

The closing of the transaction remains subject to customary closing conditions and certain regulatory approvals, and is expected to occur in the second quarter of 2014.

Sutherland Asbill & Brennan and Locke Lord LLP acted as advisors to Wilton Re on the acquisition.

Also visit www.cnoinc.com for additional information on the transaction.

Wilton Re Announces Acquisition of CNA’s Life & Group Subsidiary

Wilton Re Announces Acquisition of CNA’s Life & Group Subsidiary
February 10, 2014

(Wilton, CT) Today Wilton Re Holdings Limited (“Wilton Re”) announced definitive agreements to acquire the majority of CNA Financial Corporation’s (“CNA”) payout annuity business, primarily consisting of in-force structured settlements and group annuities. As part of the transaction, Wilton Re’s U.S. operating company, Wilton Reassurance Company, will acquire of 100% of the common stock of Continental Assurance Company (CAC), an indirect, wholly owned subsidiary of CNA. Additionally, Wilton Re Bermuda Limited will reinsure a block of run-off structured settlements from a Bermuda-based subsidiary of CNA.

Wilton Re will acquire $2.5 billion of statutory reserves, and transfer all operations of the business to its administrative services platform.

“The CNA business is a seasoned block of payout annuities supported by a high quality investment portfolio,” said Chris Stroup, Chairman and CEO of Wilton Re. “The transaction combines Wilton Re’s longevity risk management services with our industry-leading In Force Solutions. Through In Force Solutions, Wilton Re provides clients with complete and secure exits of non-strategic business while freeing up capital and resources for redeployment to their growth areas.”

The transaction is expected to close in the second quarter and is subject to customary closing conditions and regulatory approvals.

Barclays PLC and Sutherland Asbill & Brennan acted as advisors to Wilton Re on the acquisition.

Fitch affirms ‘A’ IFS Rating for Wilton Re; Outlook Stable

Fitch affirms ‘A’ IFS Rating for Wilton Re; Outlook Stable
January 6, 2014

On January 6, 2014, Fitch Ratings affirmed an ‘A’ Insurer Financial Strength (IFS) ratings to Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company (collectively referred to as Wilton Re). At the same time, Fitch has affirmed a long-term Issuer Default Rating (IDR) of ‘BBB+’ to Wilton Re Holdings Limited. The Rating Outlook is Stable.

The ratings are based on Wilton Re’s consistently strong insurance earnings, balance sheet strength that includes strong capitalization across the operating subsidiaries, a conservative investment portfolio, ample liquidity and modest financial leverage. Additionally Wilton Re is led by a team with extensive industry experience, which has helped allay Fitch’s concerns about the company’s relatively short operating history. The full report can be accessed here

For more information please contact Ray Eckert at 203-762-4436 or at [email protected]

Additional information is also available at ‘www.fitchratings.com’.

A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries

A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries
May 31, 2013

On May 31, 2013, A.M. Best Co. affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Wilton Reinsurance Bermuda Ltd. (Hamilton, Bermuda), Wilton Reassurance Company (Minneapolis, MN), Texas Life Insurance Company (Waco, TX), Heritage Union Life Insurance Company (headquartered in Wilton, CT) and Wilton Reassurance Life Company of New York (Rye Brook, NY), collectively referred to as Wilton Re.

Additionally, A.M. Best has affirmed the ICR of “bbb” of Wilton Re Holdings Limited (Hamilton, Bermuda) and the ICR and debt ratings of “bbb” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance, LLC (Wilton Re Finance) (Delaware). The notes are unconditionally guaranteed by its parent, Wilton Re U.S. Holdings, Inc. (Delaware), and the ultimate parent, Wilton Re Holdings Limited. A.M. Best notes that Wilton Re Holdings Limited’s adjusted financial leverage and interest coverage are within A.M. Best’s expectations. The outlook for all ratings is stable.

The rating affirmations of Wilton Re reflect its solid risk-adjusted capitalization levels, strong statutory and GAAP returns, favorable liquidity and high quality balance sheet, which are principally focused on mortality risk. Additionally, the ratings reflect the diversification of Wilton Re’s distributable earnings, which is focused on three core segments: Inforce Solutions, New Business Solutions and Primary Insurance through its operating subsidiary, Texas Life Insurance Company. Wilton Re has historically grown its business through an acquisition-oriented strategy with an emphasis on inforce solutions, primary insurance and new business solutions for the middle market. This focus has contributed to its favorable GAAP earnings growth and operating efficiencies in recent years. The full press release can be accessed here

Chris C. Stroup, Chairman and CEO, said, “We are pleased with A.M. Best’s decision to affirm the ‘A’ ratings of Wilton Re. Wilton Re has demonstrated a reliable approach to capital management and building shareholder value while serving the U.S. life insurance market. We continue to provide creative solutions to the industry backed by our significant capital resources and expertise.”

Fitch assigns initial ‘A’ IFS Rating to Wilton Re; Outlook Stable

Fitch assigns initial ‘A’ IFS Rating to Wilton Re; Outlook Stable
February 20, 2013

On February 20 , 2013, Fitch Ratings assigned an initial ‘A’ Insurer Financial Strength (IFS) ratings to Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company (collectively referred to as Wilton Re). At the same time, Fitch has assigned a long-term Issuer Default Rating (IDR) of ‘BBB+’ to Wilton Re Holdings Limited. The Rating Outlook is Stable.

The ratings are based on Wilton Re’s consistent growth in insurance earnings, balance sheet strength that includes strong capitalization across the operating subsidiaries, a conservative investment portfolio, ample liquidity and modest financial leverage. Additionally Wilton Re is led by a team with extensive industry experience. Fitch believes Wilton Re has taken a disciplined approach to growth reflective of the experience of the management team and the expectations of the company’s investors. The full report can be accessed here.

Chris C. Stroup, Chairman and CEO of Wilton Re, said, “We are pleased with Fitch’s rating decision of Wilton Re, which reflects our financial stability and consistent approach in serving our policyholders, investors and the U.S. life insurance industry. We look forward to continuing to build value through our service offering, including inforce solutions and middle market services.”

For more information please contact Ray Eckert at 203-762-4436 or at [email protected]

Additional information is also available at www.fitchratings.com.

A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries

A.M. Best Affirms Ratings of Wilton Re Holdings Limited and Its Subsidiaries
May 7, 2012

On May 7, 2012, A.M. Best Co. affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Wilton Reinsurance Bermuda Ltd. (Hamilton, Bermuda), Wilton Reassurance Company (Minneapolis, MN), Texas Life Insurance Company (Waco, TX), Heritage Union Life Insurance Company (headquartered in Wilton, CT) and Wilton Reassurance Life Company of New York (Rye Brook, NY), collectively referred to as Wilton Re.

Additionally, A.M. Best has affirmed the ICR of “bbb” of Wilton Re Holdings Limited (Hamilton, Bermuda) and the ICR and debt ratings of “bbb” on the $300 million 5.875% senior unsecured notes due 2033 of Wilton Re Finance, LLC (Wilton Re Finance) (Delaware). The notes are unconditionally guaranteed by its parent, Wilton Re U.S. Holdings, Inc. (Delaware), and the ultimate parent, Wilton Re Holdings Limited.  A.M. Best notes that Wilton Re Holdings Limited’s adjusted financial leverage and interest coverage are within A.M. Best’s expectations. The outlook for all ratings is stable.

In making its rating determination, A.M. Best cited Wilton Re’s solid risk adjusted capitalization levels, strong consolidated GAAP returns and high quality balance sheet. In addition, they noted that Wilton Re has built a solid reinsurance franchise and continues to successfully execute on its business strategy of providing risk and capital management solutions to U.S. life insurers. A.M. Best also attributed its rating s lower risk profile achieved by mostly focusing on stable mortality risk.

For more information, please visit www.ambest.com.

Chris Stroup interview with SNL Financial

Chris Stroup interview with SNL Financial
March 8, 2012

Chris Stroup, Chairman and Chief Executive Officer at Wilton Re, was recently interviewed by SNL Financial regarding trends in the U.S. Life Reinsurance market. In this exclusive sit-down interview, Mr. Stroup provided his perspective on current opportunities for acquisitions of closed blocks of life insurance and his views with regard to broader trends and opportunities in life reinsurance.

For further details regarding this interview, please visit www.snl.com or read the full discussion via PDF.

For more information, please contact Chris Stroup at [email protected] or by phone at (203) 762-4444.

Wilton Re featured in Insurance & Technology Magazine

Wilton Re featured in Insurance & Technology Magazine
December 2011

Andy Wood, Senior Vice President and Chief Information Officer of Wilton Re, is featured in a December 2011 article in Insurance & Technology Magazine. The article, entitled “Insurance Companies Embrace Emerging Technologies to Support a Customer-Oriented Business Model,” discusses the investments life insurers and life reinsurers are making in technology to better serve their clients.

The magazine highlights Wilton Re’s automation of the flow of data between entities to enable cost-effective, straight-through processing of in-force and new life insurance business. Wood notes that in 2012 Wilton Re expects to leverage these automated capabilities for the improvement of various analytic functions, including planning analytics, experience analytics and scenario analysis.

For further details regarding this article, please visit Insurance & Technology Magazine (www.insurancetech.com) or contact Andy Wood at [email protected], or by phone at (203) 762-4440.

Wilton Re Sponsors Milliman Final Expense Study

Wilton Re Sponsors Milliman Final Expense Study
October 25, 2011

Wilton Re has partnered with Milliman to conduct the most comprehensive mortality study of senior market products sold within the U.S. life insurance middle market. The Milliman Final Expense Study is based on final expense business issued within the United States by twenty insurance companies and covers mortality data for a ten-year period from 2000 through 2009. Wilton Re used its knowledge of the final expense market and feedback from its clients to help design the Milliman Final Expense Study. Wilton Re expects to use the results of the study to assist with addressing its clients most pressing issues and concerns in the final expense market.

One of the only completed studies of its kind, the Milliman Final Expense Study provides experience by products, including level, graded and modified, and contains in excess of 11 million policy years of exposure, over 322,000 deaths and over $63 billion of final expense policy exposure. The study also includes analysis of results by distribution approach, certain underwriting methods, and cause of death. This is a valuable study in an area of the industry that has received limited attention in terms of experience analyses and provides a more homogeneous review of the final expense market.

For more information, please contact Scott Sheefel at [email protected], or by phone at (203) 762-4448.