Sun Life Financial Inc. and Wilton Re have entered into a definitive agreement to establish a strategic reinsurance and asset management partnership, combining their capabilities across life and annuity reinsurance and asset management.
Wilton Re will establish Windsor Life Re, a U.S. and Bermuda–domiciled reinsurer supporting growth of Wilton Re’s core in-force life and annuity block origination in the U.S.
This new entity will capitalise on Wilton Re’s extensive history of successful deal sourcing, in-force block acquisitions, and specialised underwriting capabilities.
SLC Management, Sun Life’s global institutional alternatives asset manager, will be the lead asset manager for Windsor Life Re’s investments and will leverage its experience in insurance asset management and its multi-asset investment platform.
The partnership is expected to deploy approximately US$900 million of capital, backed by strategic capital commitments from Sun Life and Wilton Re, with each entity providing approximately one-third of the total equity capitalisation.
Under the terms of the agreement, Windsor Life Re will reinsure from Wilton Re an initial in-force block of approximately US$1.7 billion, while future business will be ceded by Wilton Re on a quota share basis.
Over time, Windsor Life Re is anticipated to grow to approximately US$10 billion in assets.
Tom Murphy, President of Sun Life Asset Management: “Unlocking opportunities at the intersection of insurance and asset management is a key strategic goal for Sun Life. We are excited to partner with Wilton Re, an exceptional organisation with deep reinsurance expertise, insight and a strong financial reputation.
“Our partnership with Wilton Re enhances our scale and presence in insurance asset management and provides strategic access to permanent capital to accelerate the growth of our global alternatives asset manager, SLC Management.”
“Windsor Life Re will support Wilton Re’s strategic growth, broadening our capital resources and enhancing our capabilities in the in-force life insurance and annuity market,” said Dmitri Ponomarev, CEO of Wilton Re. “Sun Life is a widely respected global insurer and asset manager with a track record and depth of expertise in investment management for insurance liabilities.”
