The Canada Pension Plan Investment Board (CPPIB), together with the management of Wilton Re, have entered into a definitive agreement to acquire 100% of the common stock of Wilton Re Holdings Limited for US$1.8 billion ($2 billion).
They are buying the company from a group of investors led by Stone Point Capital, Kelso & Company, Vestar Capital Partners and FFL Partners.
Wilton Re is a provider of life insurance and reinsurance solutions to the U.S. life insurance market and a leading acquirer of closed blocks of life insurance policies. Since its inception in 2005, Wilton Re has invested more than US$1.7 billion in a variety of strategic in force reinsurance and M&A transactions.
“In making a long-term investment in Wilton Re, CPPIB views the company as an ideal platform through which CPPIB can deploy significant follow-on capital at scale in the U.S. life insurance sector,” says André Bourbonnais, senior vice-president, private investments with CPPIB.
The transaction is subject to regulatory approvals and other customary closing conditions.
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