TORONTO – The Canada Pension Plan Investment Board said Friday it has signed an agreement to buy U.S. insurance company Wilton Re Holdings Ltd. for US$1.8 billion.
The Canadian pension fund manager, together with management of the insurer, will acquire the company from a group of investors led by Stone Point Capital, Kelso & Co., Vestar Capital Partners and FFL.
Wilton Re specializes in the acquisition and management of blocks of life insurance policies and annuities.
Andre Bourbonnais, senior vice-president of private investments at CPPIB, said the fund manager will help Wilton Re grow.
“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,” he said
CPPIB invests the money not needed by the Canada Pension Plan to pay current benefits.