Sun Life Financial Inc. (TSX: SLF, NYSE: SLF) and Wilton Re have entered into a definitive agreement to establish a reinsurance and asset management partnership, according to a press release issued Aug. 25, 2026.

Under the agreement, Wilton Re will form Windsor Life Re, a reinsurer domiciled in the U.S. and Bermuda. The partnership is expected to deploy approximately $900 million in capital, with Sun Life and Wilton Re each contributing approximately one-third of the total equity capitalization. A third party or parties are expected to provide the remaining portion.

Windsor Life Re will initially reinsure a block of approximately $1.7 billion from Wilton Re, with future business ceded on a quota share basis. The vehicle is anticipated to grow to approximately $10 billion in assets at scale.

SLC Management, Sun Life's institutional asset management arm, will serve as lead asset manager for Windsor Life Re's investments, managing up to $10 billion in assets.

"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. "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."

The partnership is expected to launch in the first half of 2027, subject to regulatory approvals and customary closing conditions. Jefferies and Sidley Austin LLP advised Sun Life. Ardea Partners LP, Wells Fargo, and Debevoise & Plimpton LLP advised Wilton Re.

As of June 30, 2026, Sun Life reported total assets under management of C$1.70 trillion ($1.20 trillion). SLC Management had $316 billion in assets under management as of the same date.