Wilton Re Announces Acquisition of CNA’s Life & Group Subsidiary
February 10, 2014
(Wilton, CT) Today Wilton Re Holdings Limited (“Wilton Re”) announced definitive agreements to acquire the majority of CNA Financial Corporation’s (“CNA”) payout annuity business, primarily consisting of in-force structured settlements and group annuities. As part of the transaction, Wilton Re’s U.S. operating company, Wilton Reassurance Company, will acquire of 100% of the common stock of Continental Assurance Company (CAC), an indirect, wholly owned subsidiary of CNA. Additionally, Wilton Re Bermuda Limited will reinsure a block of run-off structured settlements from a Bermuda-based subsidiary of CNA.
Wilton Re will acquire $2.5 billion of statutory reserves, and transfer all operations of the business to its administrative services platform.
“The CNA business is a seasoned block of payout annuities supported by a high quality investment portfolio,” said Chris Stroup, Chairman and CEO of Wilton Re. “The transaction combines Wilton Re’s longevity risk management services with our industry-leading In Force Solutions. Through In Force Solutions, Wilton Re provides clients with complete and secure exits of non-strategic business while freeing up capital and resources for redeployment to their growth areas.”
The transaction is expected to close in the second quarter and is subject to customary closing conditions and regulatory approvals.
Barclays PLC and Sutherland Asbill & Brennan acted as advisors to Wilton Re on the acquisition.