North American pension fund giant the Canada Pension Plan Investment Board has agreed a $1.8bn purchase of life insurance business Wilton Re from investors including Stone Point Capital and Kelso & Company.
The business has invested more than $1.7bn across reinsurance and M&A transactions since it was founded in 2005, and is a leading acquirer of closed blocks of life insurance policies.
CPPIB senior vice president André Bourbonnais 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 US life insurance sector.
“Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon.”
He added, “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.”
Earlier this year it emerged CPPIB’s chief investment strategist Donald Raymond was stepping down after 13 years with the fund.
Raymond, who joined CPPIB in 2001 and assumed his present role in April 2010, is due to resign at the end of March to join hedge fund manager Alignvest Management Corporation, where he will have a “leadership role”.
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