Sun Life Financial (SLF.TO, SLF) said Tuesday it is joining forces with Wilton Re to launch a new reinsurance and asset management partnership in the first half of next year.
Wilton Re will establish Windsor Life Re, a US and Bermuda-domiciled reinsurer to support Wilton Re's core in-force life and annuity block origination in the US. SLC Management will be the lead asset manager for Windsor Life Re's investments, a statement said.
The partnership will deploy $900 million of capital, with Sun Life and Wilton Re each contributing a third of the total equity capitalization. Windsor Life Re, which is expected to grow to $10 billion in assets, will initially reinsure from Wilton Re in-force block of $1.7 billion.
"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."
Sun Life shares were last seen up C$0.41 to C$110 on the Toronto Stock Exchange.
Price: $109.95, Change: $+0.36, Percent Change: +0.33%