Canada Pension Plan Investment Board (“CPPIB”) has announced that a wholly-owned subsidiary of CPPIB, together with the management of Wilton Re, have entered into an agreement to acquire 100 percent of the common stock of Wilton Re Holdings Limited for US$1.8 billion from a group of investors led by Stone Point Capital, Kelso & Company, Vestar Capital Partners, and FFL.
Wilton Re is a provider of life insurance and reinsurance solutions to the U.S. life insurance market and an acquirer of closed blocks of life insurance policies.
“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,” said André Bourbonnais, the senior vice president of private investments at CPPIB. “Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long term horizon.”
“CPPIB ownership positions the company for growth and enhances our service offerings to clients and policyholders,” said Wilton Re Chairman and Chief Executive Officer Chris Stroup. “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 and middle market insurance, and enhance our competitiveness overall.”
“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 a AAA rated long term investor, we believe CPPIB is an ideal shareholder for Wilton Re's employees, policyholders, and client partners,” said Mr. Bourbonnais.
Learn more: www.cppib.com; www.wiltonre.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].