Sun Life Financial and Wilton Re have entered into a definitive agreement to establish a strategic reinsurance and asset management partnership.
This partnership will combine Wilton Re's liability management expertise with Sun Life's insurance and asset management capabilities.
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. Windsor Life Re will benefit from Wilton Re's long track-record of success in in-force block acquisitions, deal sourcing and unique underwriting expertise. SLC Management 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$900m of capital, anchored by strategic capital 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 US$1.7bn. Future business will be ceded by Wilton Re on a quota share basis. At scale, Windsor Life Re is anticipated to grow to approximately US$10bn in assets.
"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," said Tom Murphy, president of Sun Life Asset Management.
"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."
The new partnership is expected to launch in the first half of 2027 subject to the parties obtaining required regulatory approvals and the satisfaction of customary closing conditions.
