Wilton Re will form Windsor Life Re, a United States and Bermuda-domiciled affiliated reinsurer supported by long-term strategic capital commitments from Wilton Re and Sun Life Financial Inc.

The reinsurer will be managed by Wilton Re, supporting growth of Wilton Re's core in-force life and annuity block origination in the US.

Sun Life and Wilton Re have agreed to establish a strategic reinsurance and asset management partnership combining Wilton Re's liability management expertise with Sun Life's insurance and asset management capabilities.

A statement said the partnership is expected to deploy approximately $900 million of capital, anchored by strategic capital commitments from Sun Life and Wilton Re, each contributing approximately one-third of the total equity capitalization. 

Under the terms of the agreement, Windsor Life Re will reinsure from Wilton Re an initial in-force block of approximately $1.7 billion. Future business will be ceded by Wilton Re on a quota share basis.

At scale, Windsor Life Re is anticipated to grow to approximately $10 billion in assets.

Tom Murphy, president of Sun Life Asset Management said: “Unlocking opportunities at the intersection of insurance and asset management is a key strategic goal for Sun Life. We are excited to partner with Wilton Re, an exceptional organization with deep reinsurance expertise, insight and a strong financial reputation.

“Our partnership with Wilton Re enhances our scale and presence in insurance asset management and provides strategic access to permanent capital to accelerate the growth of our global alternatives asset manager, SLC Management.”

Dmitri Ponomarev, CEO of Wilton Re said: “Windsor Life Re will support Wilton Re's strategic growth, broadening our capital resources and enhancing our capabilities in the in-force life insurance and annuity market.

“Sun Life is a widely respected global insurer and asset manager with a track record and depth of expertise in investment management for insurance liabilities.”

Subject to the parties obtaining required regulatory approvals and the satisfaction of customary closing conditions, the transaction is expected to launch in the first half of 2027