24 March 2014 News

Canada Pension acquires Wilton Re

Investment manager Canada Pension Plan Investment Board (CPPIB) has acquired 100 percent of US life re/insurer Wilton Re.

Canada’s largest pension fund manager acquired the re/insurer for $1.8 billion from a group of investors led by Stone Point Capital, Kelso & Company, Vestar Capital Partners and FFL.

“CPPIB is an ideal owner for Wilton Re that positions the company for growth and enhances our service offerings to clients and policyholders,” said Chris Stroup, chairman and chief executive officer, Wilton Re. “CPPIB represents the next phase for Wilton Re – a strategic owner, committed to our business model, with a very long term investment horizon and unparalleled capital resources. Under CPPIB ownership, we anticipate the capital resources necessary to accelerate growth and expand our core In Force Solutions offerings as well as enhance our competitiveness overall.  We remain committed to our middle market customers and will continue to emphasize and expand our worksite and private labelling solutions.”

André Bourbonnais, senior vice-president, Private Investments said: “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. Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon.

“We are investing alongside and share a common vision with Wilton Re’s management team, led by Chris Stroup, and together we plan to invest further capital into the business to support its continued growth for many years to come. As an AAA rated long-term investor, we believe CPPIB is an ideal shareholder for Wilton Re’s employees, policyholders and client partners.”

The transaction is subject to regulatory approvals and other customary closing conditions.

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