Wilton Re Announces Acquisition by Canada Pension Plan Investment Board
March 21, 2014
(Wilton, Connecticut) Today, the Wilton Re Holding Limited (“Wilton Re”) board of directors announced it has entered into a definitive agreement for the sale of 100% of Wilton Re’s outstanding stock to Canada Pension Plan Investment Board (“CPPIB”), one of the fastest growing global institutional investors, and Wilton Re management. Under the terms of the agreement the total cash consideration will be US$1.8 billion at closing. The transaction is expected to close prior to August 2014 and is subject to customary closing conditions and regulatory approvals.
“CPPIB is an ideal owner for Wilton Re that positions the company for growth and enhances our service offerings to clients and policyholders,” said Chris Stroup, chairman and CEO, Wilton Re. “CPPIB represents the next phase for Wilton Re – a strategic owner, committed to our business model, with a very long term investment horizon and unparalleled capital resources. Under CPPIB ownership, we anticipate the capital resources necessary to accelerate growth and expand our core In Force Solutions offerings as well as enhance our competitiveness overall. We remain committed to our middle market customers and will continue to emphasize and expand our worksite and private labeling solutions.”
“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,” said André Bourbonnais, Senior Vice-President, Private Investments. “Closed-block life insurance is an asset class with attractive risk-adjusted returns, well-suited to our long-term horizon.”
The transaction involves the 100% stock acquisition of Wilton Re Holding Limited, a Bermuda insurance holding company and all subsidiaries within the Wilton Re Group, including Wilton Reinsurance Bermuda Limited, Wilton Reassurance Company (MN), Wilton Reassurance Life Company of New York, and Texas Life Insurance Company. CPPIB is committed to the management, employees and organization of Wilton Re, and will support management in the future growth of the Company. Wilton Re’s operations and policyholder service in Wilton, Connecticut, Nashville, Tennessee and Waco, Texas will remain unaffected by the acquisition and policyholders will continue to receive high levels of professional administrative services.
Barclays PLC, Skadden, Arps, Slate, Meager & Flom LLP, Sutherland Asbill & Brennan LLP, and Milliman served as advisors to Wilton Re during the transaction.
Also see the CPPIB news release on the Wilton Re acquisition at www.cppib.com.
About Wilton Re
Wilton Re is headquartered in Hamilton, Bermuda and specializes in the acquisition and management of mortality and investment risk as well as with assisting life insurance clients with product development, underwriting, and new business strategies for the middle market. Through its U.S. holding company, Wilton Re Holdings, Wilton Re focuses on the U.S. life insurance market where the company provides risk capital and related services including M&A, reinsurance and longevity risk management. Wilton Re also partners with companies to implement new business strategies for middle market sales, with an emphasis on worksite, senior market and simplified term products. The Company offers fully customized solutions that include private labeling with supporting delivery and administrative systems. The company’s U.S. business is centered in Wilton Connecticut and has operations in Nashville, Tennessee and Waco Texas. As of December 31, 2013, Wilton Re had US$8.2 billion of total assets, US$1.2 billion of operating revenue and US$1.4 billion of US GAAP equity.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London, Hong Kong, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2013, the CPP Fund totaled C$201.5 billion. For more information about CPPIB, please visit www.cppib.com.
Please reference the CPPIB Acquisition FAQs for additional information.