Market Overview

A.M. Best Assigns Issue Credit Rating to Weston2038 LLC's Credit-Linked Note


A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term
IR) of "a" to approximately $846 million of 6.00% Variable Funding
Credit-Linked Note (CLN), due July 1, 2038, issued by Weston2038 LLC
(Weston2038), a Delaware limited liability company (Issuer). The
outlook assigned to the Credit Rating (rating) is stable.

The CLN is in exchange for a Variable Funding Surplus Note issued by
Redding Reassurance Company 3 LLC (Redding Re 3), a Missouri-domiciled
special purpose life insurance company and a direct wholly owned
subsidiary of Wilton Reassurance Company (Wilton Reassurance).
The CLN is used to support the excess reserves requirement for a
specified block of life insurance policies ceded by Wilton Reassurance
on a coinsurance basis to Redding Re 3. In additional to the
CLN, the Traditional Collateral transferred to Redding Re 3 to support
economic reserves are to be held in a Reinsurance Trust Account for the
benefit of Wilton Reassurance.

At the time of the issuance of the CLN, Wilton Reassurance will
provide capital of approximately $86 million to Redding Re 3 with
cash/liquid assets at a level consistent with 250% Company Action Level
Risk- Based Capital. Redding Re 3, at the time of the issuance of the
CLN, will issue the Variable Funding Surplus Note to Weston2038, with a
face amount equal to the initial excess reserves in exchange for the
equivalent face amount of the CLN issued by Weston2038. The Variable
Funding Surplus Note and the CLN will have the same interest rate.
Concurrently, Weston2038 will enter into a risk transfer agreement
(i.e., cash-settled ISDA swap) with Hannover Life Reassurance Company
of America (Bermuda) Ltd.
(Hannover Re Bermuda) to provide liquidity
for any redemption/monetization of the CLN.

The rating assigned represents A.M. Best's current opinion as to the
issuer's ability to meet its financial obligations to the noteholders
when due. The rating primarily takes into consideration the following:
Hannover Re Bermuda's Long-Term Issuer Credit Rating (Long-Term ICR) of
"aa" as the swap counterparty to Weston2038; netting arrangements among
transaction parties; the thin capitalization of Weston2038; Wilton
Reassurance's Long-Term ICR, as the entity provides support of
the 250% Company Action Level Risk-Based Capital for Redding Re 3; and
the potential legal risks related to enforceability of the various
transaction agreements and potential consolidation issues of various

The Long-Term IR could be upgraded or downgraded and/or the outlook
revised if material changes occur in the financial condition and ratings
of Hannover Re Bermuda or if Wilton Reassurance's ratings decline

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
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