Canada Pension Plan Investment Board’s (CPPIB) wholly-owned subsidiary, together with the management of Wilton Re, has signed a definitive agreement to acquire 100% Wilton Re Holdings for $1.8bn.
CPPIB will acquire the assets from a group of investors led by Stone Point Capital, Kelso & Company, Vestar Capital Partners and FFL.
Wilton Re is a life insurance and reinsurance solutions in the US market. The company is also the acquirer of closed blocks of life insurance policies.
CPPIB Private Investments senior vice-president André Bourbonnais said that in making a long-term investment in Wilton Re, the board views the company as an ideal platform through which it can deploy significant follow-on capital at scale in the US life insurance sector.
"Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon," Bourbonnais added.
The deal is subject to regulatory approvals and other customary closing conditions.
Wilton Re chairman and CEO Chris Stroup said, "Under CPPIB ownership, we anticipate the capital resources necessary to accelerate growth and expand our core In Force Solutions and middle market insurance, and enhance our competitiveness overall."