Market Overview

A.M. Best Assigns Ratings to Heritage Union Life Insurance Company


A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to Heritage Union Life Insurance Company (Heritage Union) (Minneapolis, MN). The outlook assigned to both ratings is stable.

The ratings of Heritage Union acknowledge the ownership structure and new reinsurance agreement between Heritage Union and its parent, Wilton Reassurance Company (WRAC), a Minnesota domestic life insurance company. Under the coinsurance arrangement, Heritage Union will cede 100% of its new premiums to WRAC.

The ratings also consider the strategic role Heritage Union offers to support WRAC's diversification efforts for middle market sales to the direct insurance market and the significant reinsurance support provided by the parent. Heritage Union was acquired by WRAC from Heritage Union, LLC in July 2011.

Heritage Union offers simplified life insurance products through direct marketing. This marketing initiative is supported by WRAC's extensive knowledge base of simplified products (through affiliate Texas Life); Heritage Union benefits from the ability to leverage WRAC's operating platform for efficiencies and cost management.

Partially offsetting rating factors include Heritage Union's fluctuating capitalization, recent operating losses due to technological investments to support its business model, and its limited operating profile.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Rating Members of Insurance Groups.” Best's Credit Rating Methodology can be found at

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Louis Savarese
Senior Financial Analyst
(908) 439-2200, ext. 5168
Rosemarie Mirabella
Managing Senior Financial Analyst
(908) 439-2200, ext. 5892
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644

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