AM Best confirmed no changes for the financial strength and credit ratings of Cayman-based reinsurer Hildene Re SPC Ltd, following a proposed transaction involving its investment manager.
The review follows Hildene Capital Management, LLC’s agreement to acquire insurer SILAC Inc.
The ratings agency said Hildene Re’s financial strength rating (FSR) of B++ (Good) and long-term issuer credit rating (ICR) of ‘bbb+’ (Good) remain unchanged, with a stable outlook.
AM Best also indicated the transaction does not alter its current assessment of the reinsurer’s balance sheet strength or operating profile.
Hildene Capital Management announced on 8 December that it had entered into a definitive agreement to acquire SILAC Inc, the parent of SILAC Insurance Company.
The transaction is expected to close in mid-2026, subject to regulatory approvals and customary closing conditions.
The acquisition will be funded entirely in cash and will include all outstanding common equity of SILAC Inc.
Under the proposed structure, Hildene Re and SILAC Inc will continue to operate under separate ultimate parent companies.
Hildene Insurance Holdings, LLC will remain the majority owner and ultimate parent of Hildene Re.
Hildene Holding Company, LLC will become the majority owner of SILAC Inc and its subsidiaries upon completion of the transaction.
Founded in 2008 by Brett Jefferson, Hildene operates as a diversified institutional asset manager focused on asset-based strategies, structured credit and insurance-related solutions.
The group manages more than US$18 billion in assets.
As of 30 September, SILAC reported about $10 billion in total admitted assets and $505 million in capital and surplus.
In 2024, it originated about $2.5 billion in annuities, primarily fixed indexed products, and holds financial strength ratings of BBB from KBRA, BBB- from Fitch and B from AM Best.
