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December 9, 2021

Canada Pension Plan considers sale of Wilton Re and Ascot Group

Canada Pension Plan Investment Board (CPPIB or CPP Investments) is reportedly looking to divest annuity reinsurance firm Wilton Re and specialty insurance firm Ascot Group.

Reuters reported citing people familiar with the matter that CPP Investments is planning to launch the sale processes in 2022.

An investment bank is said to be scouting for potential buyers for Wilton Re.

According to the sources, Wilton Re could be valued at over $4bn plus debt. It is unclear the valuation Ascot Group could achieve.

There is no certainty that a deal could materialise for either of the business, said the sources.

CPP Investments, Ascot Group and Wilton Re, however, declined to comment, reported the news agency.

Toronto-based CPP Investments acquired Wilton Re for $1.8bn in 2014, while Ascot Group was bought for $1.1bn in 2016.

It is looking to sell as competition has intensified in the life and annuity reinsurance space.

Earlier, CPP Investments had stakes in several insurance and reinsurance firms, including Enstat, a legacy specialist. It also had insurance-linked securities allocations.

Wilton Re is the holding firm for several insurance and reinsurance companies, including Texas Life Insurance Company and Wilton Reassurance Company.

Ascot Group offers global insurance and reinsurance products and has operations in Bermuda and US.

In September this year, media reports emerged that CPPIB is planning to divest its 2% stake in India-based SBI Life Insurance Company.

It was then reported the CPPIB is offering Indian insurer’s shares in the range of $15.76 (INR1,159) and $16.59 (INR1,220) per share.p

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