Wilton Reinsurance Bermuda Ltd. has had its outlook revised from stable to positive and affirmed the financial strength rating (FSR) of A- (excellent) and issuer credit ratings (ICR) of a- of Wilton by AM Best & Co., along with Wilton Reassurance Company (Plymouth, MN) and Wilton Reassurance Life Company of New York (Rye Brook) (together known as Wilton Re).

Best said Wilton Re's revised outlook reflects its very strong risk-adjusted capital position and high quality invested asset portfolio; improved GAAP earnings; its continued success in executing a strategy, which focuses on the acquisition of closed books of business that fit within defined parameters.

Best also said Wilton Re's successful efforts in raising substantial capital in a competitive market environment and a proven ability to provide value added solutions to clients in the life reinsurance arena.

Management's adherence to its business plan, and informed pricing, as well as the quality and volume of business secured since inception has established Wilton Re as a viable player within the life reinsurance market, said Best.

Acquisition activity over the last 12 months, which has led to improved economies of scale, are accretive to earnings and has secured Wilton Re's position in the US domestic life reinsurance industry, where financial resources, industry expertise and market power increasingly have become concentrated, according to the ratings agency.

Meanwhile, Best added that the offsetting rating factors are Wilton Re's relatively small size in the life reinsurance industry; statutory losses for the last two years due to significant strain associated with new business; and challenges associated with sustaining profitable growth in the highly competitive US life reinsurance marketplace.