The Canada Pension Plan Investment Board (CPPIB) has agreed to purchase Wilton Re for $1.8bn from a group of private equity firms led by Stone Point Capital, Kelso & Company, Vestar Capital Partners and FFL.
The acquisition of the US life insurance and reinsurance company, which is subject to regulatory approvals and other customary closing conditions, is a part of CPPIB’s strategy to foray into the US insurance business.
Wilton Re operates as life insurance and reinsurance services provider to the US life insurance market and an acquirer of closed blocks of life insurance policies.
CPPIB private investments senior vice-president André Bourbonnais said, "In making a long-term investment in Wilton Re, CPPIB views the company as an ideal platform through which CPPIB can deploy significant follow-on capital at scale in the U.S. life insurance sector.
"Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon."
Headquartered in Bermuda, Wilton Re specializes in the acquisition and management of blocks of in force life insurance and annuities, as well as with assisting life insurance clients with product development, underwriting, and new business strategies for the middle market.