The Canada Pension Plan Investment Board has entered into an agreement to buy 100% of the common stock of Wilton Re Holdings Limited.

A group of investors led by Stone Point Capital, Kelso & Company, Vestar Capital Partners and FFL will pay US$1.8 billion for the stock.

Wilton Re provides life insurance and reinsurance solutions to the U.S. life insurance market. It’s a leading buyer of closed blocks of life insurance policies, and has successfully invested over US$1.7 billion since 2005.

“Closed-block life insurance is an asset class with attractive risk-adjusted returns [and it’s] well-suited to our long-term horizon,” says Andre Bourbonnais, senior vice president of private investments at CPPIB.

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