The Canada Pension Plan Investment Board (CPPIB) said on Friday it agreed to buy U.S. life insurance and reinsurance provider Wilton Re Holdings Ltd for $1.8 billion from a group of private equity firms, the first foray by the global dealmaker into the U.S. insurance business.
CPPIB said it would acquire the common stock of Wilton, a leading acquirer of closed blocks of life insurance policies, from a group of private equity firms led by Stone Point Capital, Kelso & Co, Vestar Capital partners and FFL. Reinsurers help insurers spread risk in exchange for part of the profit.
CPPIB manages Canada’s national pension fund.
A.M. Best said the ratings of Wilton Re Holdings and its insurance subsidiaries remain unchanged following the announcement. A.M. Best said it expects no change in Wilton Re’s business profile, senior management or capitalization following the transaction. However, A.M. Best said it will continue to “review the integration and any potential business impact until the acquisition is finalized.”
(Reporting by Allison Martell; Editing by Jeffrey Benkoe)