Key Takeaways
- • Sun Life Financial and Wilton Re have signed a definitive agreement to establish a strategic reinsurance and asset management partnership, combining Wilton Re's liability management expertise with Sun Life's insurance and asset management capabilities.
- • Windsor Life Re, a U.S. and Bermuda-domiciled reinsurer, will be established by Wilton Re and managed by the company, with an initial in-force block of approximately US$1.7 billion reinsured from Wilton Re.
- • The partnership will deploy approximately US$900 million of capital, with Sun Life and Wilton Re each contributing approximately one-third of total equity capitalization through strategic long-term capital commitments.
- • SLC Management, Sun Life's global institutional alternatives asset manager, will serve as lead asset manager for Windsor Life Re, managing up to US$10 billion in investments and leveraging its multi-asset investment platform and insurance asset management expertise.
- • Future business will be ceded by Wilton Re to Windsor Life Re on a quota share basis, supporting Wilton Re's growth in core in-force life and annuity block origination in the U.S.
Summary
Sun Life Financial and Wilton Re have entered into a definitive agreement to form a strategic partnership combining reinsurance operations and asset management capabilities. The partnership establishes Windsor Life Re, a new U.S. and Bermuda-domiciled reinsurer that will be managed by Wilton Re and supported by long-term strategic capital commitments from both parties. This structure leverages Wilton Re's established track record in in-force block acquisitions, deal sourcing, and specialized underwriting expertise to drive growth in the U.S. life and annuity reinsurance market.
The partnership will deploy approximately US$900 million of capital, with Sun Life and Wilton Re each contributing roughly one-third of the total equity capitalization. Under the definitive agreement terms, Windsor Life Re will initially reinsure an in-force block of approximately US$1.7 billion from Wilton Re, with future business to be ceded on a quota share basis. This arrangement positions the new reinsurer to benefit from Wilton Re's sourcing capabilities while scaling operations through collaborative underwriting and block acquisitions.
SLC Management, Sun Life's global institutional alternatives asset manager, will assume the role of lead asset manager for Windsor Life Re's investment portfolio, with potential to manage up to US$10 billion in assets. SLC Management will deploy its experience in insurance asset management and its multi-asset investment platform to optimize Windsor Life Re's capital deployment and returns. This integration of asset management expertise directly into the reinsurance vehicle enhances the partnership's operational efficiency and investment performance capabilities across the combined platform.
The partnership will deploy approximately US$900 million of capital, with Sun Life and Wilton Re each contributing roughly one-third of the total equity capitalization. Under the definitive agreement terms, Windsor Life Re will initially reinsure an in-force block of approximately US$1.7 billion from Wilton Re, with future business to be ceded on a quota share basis. This arrangement positions the new reinsurer to benefit from Wilton Re's sourcing capabilities while scaling operations through collaborative underwriting and block acquisitions.
SLC Management, Sun Life's global institutional alternatives asset manager, will assume the role of lead asset manager for Windsor Life Re's investment portfolio, with potential to manage up to US$10 billion in assets. SLC Management will deploy its experience in insurance asset management and its multi-asset investment platform to optimize Windsor Life Re's capital deployment and returns. This integration of asset management expertise directly into the reinsurance vehicle enhances the partnership's operational efficiency and investment performance capabilities across the combined platform.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.