A.M. Best Revises Outlook to Stable for Wilton Re.OLDWICK, N.J. -- A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of a-" of Wilton Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Bermuda Limited (Hamilton, Bermuda), Wilton Reassurance Company (Plymouth, MN) and Wilton Reassurance Life Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (Rye Brook, NY) (together known as Wilton Re). Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICR of "a-" of Texas Life Insurance Company. The outlook for both of these ratings is stable. The revised outlook for Wilton Re reflects A.M. Best's opinion that the impact of the current economic turmoil limits the likelihood of a rating upgrade over the intermediate term. The ratings of Wilton Re are based upon its consistent history of profitable net premium growth, A.M. Best's belief that the company will adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. its business plan of growing largely through reinsuring life books of business and A.M. Best's expectation that Wilton Re will maintain strong risk-adjusted capitalization levels. In A.M. Best's view, Wilton Re's current risk-adjusted capital position is more than adequate to support its existing business. Constraining con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. the ratings are the adverse financial market conditions that potentially pressure Wilton Re's earnings and capital position due to realized and unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. , the continuing need to finance the company's business plan with new capital and its brief operating history. A.M. Best believes that any capital raising initiatives in the current economic environment will be very challenging; thus, limiting Wilton Re's ability to acquire an above average volume of new business. Texas Life was acquired from MetLife, Inc. in March 2009. Texas Life, with a distribution presence in 49 states, focuses on the selling of simplified universal life and whole life policies primarily to the educational workplace market through independent distributors. Texas Life's ratings reflect the solid capitalization and lengthy history of profitable operations. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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