NEW YORK (Bloomberg) - Bermuda-based Wilton Re Holdings Ltd., a new life reinsurer, said it raised more than $600 million from investors including Marsh & McLennan Cos.' investment arm and buyout firms Vestar Capital Partners and Friedman Fleischer & Lowe.

Wilton Re has a $200 million commitment from a fund managed by MMC Capital Inc., a unit of Marsh, the world's largest insurance broker, said Chris Stroup, a former Swiss Reinsurance Co. executive who will serve as chairman and chief executive officer of the new firm. He declined to value the contributions from the other participants.

Investors are creating Wilton Re after competitors abandoned the US market, increasing prices. Companies such as General Electric Co.'s Employers Re Corp. and ING Groep NV sold units or halted sales in the past year, citing less-than-expected earnings.

Wilton Re, based in Bermuda with offices in Wilton, Connecticut, will start selling insurance to other life insurers in the next 30 days, said Stroup, a senior adviser for MMC Capital. The company will compete with Swiss Re, as well as Munich Re, Scottish Re Group Ltd. and MetLife Inc.'s Reinsurance Group of America.

John Tiller, who ran Employers Re's global life reinsurance business, will be CEO of Wilton's Re's US business.