Canadian insurer Sun Life and Wilton Re have partnered to establish a $10bn (£7.3bn) reinsurer, with global alternatives firm SLC Management serving as the lead asset manager for the business.

The partnership will establish Windsor Life Re, a US- and Bermuda-domiciled reinsurer, to support Wilton Re’s core in-force life and annuity block origination.

As part of the partnership, which covers reinsurance and asset management, the firms are expected to deploy approximately $900m of capital, anchored by capital commitments from Sun Life and Wilton Re.

The tie-up combines Wilton Re’s experience in block acquisitions, deal sourcing and underwriting with SLC Management’s investment expertise across public and private fixed income markets, as well as global real estate equity and debt.

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“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,” said Tom Murphy, president of Sun Life Asset Management.

Under the terms of the agreement, Windsor Life Re will reinsure an initial in-force block of approximately $1.7bn from Wilton Re. At scale, Windsor Life Re is anticipated to grow to approximately $10bn in assets, according to the firms.

The new partnership is expected to launch in the first half of 2027, subject to the parties obtaining the required regulatory approvals.

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Jefferies acted as the financial adviser and Sidley Austin acted as the legal adviser to Sun Life. Ardea Partners and Wells Fargo acted as the financial advisers, while Debevoise & Plimpton acted as the legal adviser to Wilton Re.

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