Sun Life & Wilton Re Form Strategic Partnership
Sun Life Financial Inc. and Wilton Re have “entered into a definitive agreement to establish a strategic reinsurance and asset management partnership.”
A spokesperson said, “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 U.S. and Bermuda–domiciled reinsurer supporting growth of Wilton Re’s core in-force life and annuity block origination in the U.S. 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$900 million of capital, anchored by strategic capital commitments from Sun Life and Wilton Re, each contributing approximately one-third of the total equity capitalization. Under the terms of the agreement, Windsor Life Re will reinsure from Wilton Re an initial in-force block of approximately US$1.7 billion. 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$10 billion 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 organization 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.”
“Windsor Life Re will support Wilton Re’s strategic growth, broadening our capital resources and enhancing our capabilities in the in-force life insurance and annuity market,” said Dmitri Ponomarev, CEO of Wilton Re. “Sun Life is a widely respected global insurer and asset manager with a track record and depth of expertise in investment management for insurance liabilities.”
A spokesperson added, “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. Jefferies acted as the financial advisor and Sidley Austin LLP acted as the legal advisor to Sun Life. Ardea Partners LP and Wells Fargo acted as the financial advisors and Debevoise & Plimpton LLP acted as the legal advisor to Wilton Re.”
