Regulatory approvals stand between the deal and its first-half 2027 launch
A new US and Bermuda-domiciled reinsurer will deploy roughly US$900m of capital into in-force life and annuity blocks south of the border, with SLC Management named lead asset manager for its investments.
Sun Life Financial Inc. and Wilton Re have signed a definitive agreement covering the reinsurance and asset management arrangement.
Wilton Re will establish the vehicle, Windsor Life Re, to back its in-force life and annuity block origination in the US rather than in Canada.
Each of the two firms will contribute approximately one-third of the total equity capitalization, the announcement said, with the remainder unspecified.
Windsor Life Re will reinsure an initial in-force block of about US$1.7bn from Wilton Re, and future business will be ceded on a quota share basis.
The companies expect the reinsurer to hold about US$10bn in assets once the book is built out.
SLC Management, Sun Life's alternatives asset manager, will lead investment management for Windsor Life Re.
"Unlocking opportunities at the intersection of insurance and asset management is a key strategic goal for Sun Life," said Tom Murphy, president of Sun Life Asset Management, in the announcement.
He said the arrangement gives Sun Life access to permanent capital to grow SLC Management.
Wilton Re holds the liability side of the arrangement, originating and ceding the blocks.
Dmitri Ponomarev, chief executive officer of Wilton Re, said Windsor Life Re will broaden the company's capital resources.
He tied the move to Wilton Re's position in the in-force life insurance and annuity market in the announcement.
Launch is targeted for the first half of 2027, subject to regulatory approvals and customary closing conditions, per the announcement.
Jefferies acted as financial advisor, while Ardea Partners LP and Wells Fargo advised Wilton Re.
