Sun Life Financial is teaming up with Wilton Re to form a strategic reinsurance and asset-management partnership.
Under the terms of the agreement, the companies will commit about $900 million in capital--with Sun Life and Wilton Re each contributing one-third--to establish Windsor Life Re, a U.S. and Bermuda-domiciled reinsurer supporting growth of Wilton Re's core in-force life and annuity block origination in the U.S.
Sun Life's institutional manager, SLC Management, will serve as the primary asset manager of Wilton Re's new standalone reinsurance vehicle.
As part of the agreement, Windsor Life Re will reinsure from Wilton Re an initial in-force block of $1.7 billion, and future business will be ceded by Wilton Re on a quota share basis.
Windsor Life Re is expected to grow to $10 billion in assets.
The new partnership is expected to launch in the first half of 2027.