Wilton Re partners with Sun Life to launch Windsor Life Re, a life annuity sidecar-like reinsurer

Wilton Re, a provider of in-force and reinsurance solutions, is partnering with Sun Life Financial Inc., to launch Windsor Life Re, a new U.S. and Bermuda based company that will initially act as a kind of life and annuity reinsurance sidecar for the company and is expected to deploy around US $900 million in capital.

This comes as Wilton Re and Sun Life Financial Inc. have announced that they have entered into a definitive agreement to establish a strategic reinsurance and asset management partnership, which is set to combine Wilton Re’s liability management expertise with Sun Life’s insurance and asset management capabilities.

The new partnership between the two companies is expected to launch in the first half of 2027, subject to the parties obtaining required regulatory approvals and the satisfaction of customary closing conditions.

The new partnership will see Wilton Re form the aforementioned Windsor Life Re affiliated reinsurer, which will be supported by long-term strategic capital commitments from both Wilton Re and Sun Life.

In addition, Windsor Life Re will benefit from Wilton Re’s track-record of success in in-force block acquisitions, deal sourcing and unique underwriting expertise.

According to the announcement, SLC Management will serve as the lead asset manager for Windsor Life Re’s investments and will leverage its deep expertise within insurance asset management and its multi-asset investment platform.

The partnership is reportedly expected to deploy approximately US$900 million of capital, supported by strategic financial commitments from Sun Life and Wilton Re, with each entity contributing roughly one-third of the total equity capitalisation.

Under the terms of the agreement, Windsor Life Re is expected to reinsure an initial in-force block of approximately $1.7 billion from Wilton Re.

Future business will be ceded by Wilton Re on a quota share basis.

Importantly, both companies highlighted that Windsor Life Re is also expected to expand to around US$10 billion in assets.

Structures of this kind act as a type of reinsurance sidecar, fuelling additional third-party capital to support life and annuity business through reinsurance quota share transactions to benefit a sponsor like Wilton Re, while also providing returns and an asset management opportunity to other partners in the venture.

Jefferies acted as financial advisor, while Sidley Austin LLP acted as the legal advisor to Sun Life on the transaction. At the same time, Ardea Partners LP and Wells Fargo acted as the financial advisors and Debevoise & Plimpton LLP acted as the legal advisor to Wilton Re.

Tom Murphy, President of Sun Life Asset Management, commented: “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.

Murphy added: “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.”

This sidecar-like structure is similar to the recently established West Grove Re Ltd., a Bermuda based reinsurance sidecar that was launched by international life and annuity insurance specialist Talcott Financial Group. This structure was capitalised with around $1 billion, following a fundraising effort conducted in partnership with Goldman Sachs.

Other recent launches of life and annuity reinsurance sidecar type structures include, F&G launching Fort Green Reinsurance in partnership with Blackstone in August 2025, while Fortitude Re and Carlyle partnered on the launch of the Fortitude Carlyle Asia Reinsurance Ltd. (FCA Re) sidecar in October 2025.

You can read all about the many reinsurance sidecar investments and transactions over the history of the ILS market, including life and annuity vehicles, by visiting our comprehensive list of collateralized reinsurance sidecars transactions.