Sun Life Financial and Wilton Re have entered into a definitive agreement to establish a strategic reinsurance and asset management partnership, combining Wilton Re’s liability management expertise with Sun Life’s insurance and asset management capabilities.
As part of the deal, Wilton Re will establish Windsor Life Re, a US and Bermuda-domiciled reinsurer supporting growth of Wilton Re’s core in-force life and annuity block origination in the US. The new reinsurer will draw on Wilton Re’s track record in in-force block acquisitions, deal sourcing, and underwriting. SLC Management will act as lead asset manager for Windsor Life Re’s investments, leveraging its multi-asset investment platform and experience in insurance asset management.
The partnership is expected to deploy approximately $900m of capital. This will be anchored by strategic commitments from Sun Life and Wilton Re, each contributing 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 $1.7bn, with future business ceded by Wilton Re on a quota share basis. At scale, Windsor Life Re is anticipated to grow to approximately $10bn in assets.
The partnership is expected to launch in the first half of 2027, subject to required regulatory approvals and the satisfaction of customary closing conditions.
Tom Murphy, president of Sun Life Asset Management, welcomed the agreement.
“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 organization 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,” said Murphy.
Dmitri Ponomarev, chief executive officer of Wilton Re, also commented.
