March 3, 2014 / 3:16 PM / in 4 years

Fitch: Wilton Re's Acq of Conseco Life: No Impact on Ratings

(The following statement was released by the rating agency) CHICAGO, March 03 (Fitch) Fitch Ratings has taken no rating action on Wilton Reassurance Company or any of its subsidiaries (collectively Wilton Re) following today's announcement that the company signed a definitive agreement to acquire 100% of the common stock of Conseco Life Insurance Company (CLIC), a wholly owned subsidiary of CNO Financial Group, Inc. (CNO). As part of the agreement, Wilton Re will acquire $3.4 billion of closed-block interest-sensitive and traditional life and annuity statutory reserves and transfer all operations of the business to its administrative services platform. The transaction is expected to close in the second quarter of 2014, subject to customary closing conditions and regulatory approvals. Wilton Re expects to finance the transaction with internal resources. Fitch views this transaction as in line with management's strategy to offer runoff solutions to primary insurance companies by acquiring blocks of life insurance risks through acquisitions. Fitch believes the inherent execution and integration risk associated with the CNO transaction are partially mitigated by Wilton Re's successful track record of acquiring seasoned blocks of business. Fitch's expectation is that post-close Wilton Re will maintain CLIC's capitalization at a level equivalent to that of its other U.S. domiciled life companies. Fitch's current ratings are as follows: Wilton Reassurance Company Wilton Reinsurance Bermuda Limited Wilton Reassurance Life Company of New York Texas Life Insurance Company --Insurer Financial Strength 'A'; Outlook Stable. Wilton Re Holdings Limited --Long-term Issuer Default Rating (IDR) 'BBB+'; Outlook Stable. Wilton Re Finance LLC --5.875% Senior Notes due March 30, 2033 'BBB'. Contact: Primary Analyst Tana M. Higman Director +1-312-368-3122 Fitch Ratings, Inc. 70 W. Madison Street Chicago, IL 60602 Secondary Analyst Douglas L. Meyer, CFA Managing Director +1-312-368-2061 Committee Chairperson Martha M. Butler, CFA Senior Director +1-312-368-3191 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. Applicable Criteria and Related Research: --'Insurance Rating Methodology', dated Nov. 13, 2013. Applicable Criteria and Related Research: Insurance Rating Methodology here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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