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Sun Life and Wilton Re create new life and annuity reinsurance venture
The deal includes about US$900 million in deployed capital and plans for Windsor Life Re to back an initial US$1.7 billion in-force life and annuity block.
Sun Life Financial and Wilton Re have signed a definitive agreement to form a strategic reinsurance and asset management partnership focused on life and annuity business. The partners will establish Windsor Life Re as a U.S. and Bermuda-domiciled reinsurer to support growth of Wilton Re’s existing in-force life and annuity block origination in the United States.
Windsor Life Re is expected to deploy approximately US$900 million of capital, supported by strategic commitments from Sun Life and Wilton Re, with each company providing about one-third of the total equity capitalization. Under the agreement, Windsor Life Re will reinsure an initial in-force block of approximately US$1.7 billion, with future business ceded by Wilton Re on a quota share basis.
For the investment side, SLC Management, Sun Life’s global institutional alternatives asset manager, will serve as the lead asset manager for Windsor Life Re’s investments. The venture is anticipated to grow over time to approximately US$10 billion in assets.
Reinsurance News said the partnership is designed to combine Windsor Life Re’s specialized underwriting and deal sourcing approach with Wilton Re’s in-force block acquisition history and Sun Life’s asset management capabilities.