The new reinsurer opens with a US$1.7 billion block and launches in the first half of 2027
SLC Management will take the lead asset management mandate for a new US and Bermuda-domiciled reinsurer, adding a permanent-capital pool to the platform that manages fixed income and alternatives money for Canadian pension plans.
Sun Life Financial Inc. and Wilton Re have signed a definitive agreement to establish the vehicle, Windsor Life Re, according to a joint announcement from the two firms.
The arrangement pairs Wilton Re's in-force life and annuity block origination in the US with investment management from SLC Management, Sun Life's alternatives asset manager.
Each firm will contribute approximately one-third of the total equity capitalization, per the announcement, against a total capital deployment of roughly US$900m.
The remaining third is unattributed in the announcement.
Windsor Life Re will reinsure an initial in-force block of about US$1.7bn from Wilton Re, with future business ceded on a quota share basis.
The companies expect assets to reach about US$10bn once the book is built out.
Permanent capital is the element that matters most for institutional allocators watching SLC Management.
Insurance-linked mandates do not carry the redemption pressure of pooled or open-ended vehicles, which gives a manager a stable base to build private credit, real estate, and infrastructure capacity against.
Sun Life has framed the arrangement in those terms.
"Unlocking opportunities at the intersection of insurance and asset management is a key strategic goal for Sun Life," said Tom Murphy, president of Sun Life Asset Management, in the announcement.
He said the arrangement gives Sun Life access to permanent capital to grow SLC Management.
The blocks themselves sit outside Canada.
Wilton Re originates in the US life and annuity in-force market, and the vehicle is domiciled in the US and Bermuda, so the transaction carries no direct implication for Canadian pension risk transfer capacity or group benefits pricing.
Dmitri Ponomarev, chief executive officer of Wilton Re, said in the announcement that Windsor Life Re will broaden the company's capital resources and add to its capabilities in the in-force life insurance and annuity market.
Launch is targeted for the first half of 2027, subject to regulatory approvals and customary closing conditions, according to the announcement.
