Wilton Re Announces the Agreement to Acquire Payout Annuity and BOLI/COLI businesses from Aegon’s Transamerica Unit
May 22nd, 2017
Today, the board of directors of Wilton Re Ltd (“Wilton Re”) announced the execution of a definitive agreement to acquire Transamerica’s two largest U.S. run-off businesses: the payout annuity business and the bank owned / corporate owned life insurance business (BOLI/COLI). In total, Wilton Re will assume $14 billion of general account and separate account liabilities through administrative reinsurance agreements with Transamerica subsidiaries. Wilton Re will assume administration for the business upon closing.
This represents the second significant deal between Wilton Re and the Aegon group, with Wilton Re having acquired Transamerica’s ongoing Canadian operations, now renamed ivari, in 2015. The transaction is consistent with Wilton Re’s aspiration to develop risk, capital and administrative solutions to address our clients’ largest and most complex needs. And it reinforces Wilton Re’s leading position for comprehensive run off management solutions in North America.
“This acquisition is perfectly aligned with our core competencies and the value proposition we bring to our clients,” says Chris Stroup, Chairman and Chief Executive Officer, Wilton Re. “Wilton Re is the most experienced provider of In Force Solutions in the North American life insurance industry, and this business transaction with Aegon fits well with our strengths. After the transaction has closed, we will ensure a seamless transition and continuity of service to customers by welcoming the team that currently administers this business to Wilton Re.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close this summer.
Aegon’s roots go back more than 170 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 20 countries in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people achieve a lifetime of financial security. More information on aegon.com/about.
About Wilton Re
Wilton Re is a leading provider of In Force Solutions. Focusing on the North American life insurance market, the Company provides risk capital and related services including M&A. Our administrative capabilities provide the industry with efficient and effective runoff management of legacy blocks of life insurance and annuity contracts.
The Company also partners with companies to implement new business strategies for middle-market sales, with an emphasis on worksite, senior market and simplified term products. Wilton Re offers fully customized solutions that include private labeling with supporting delivery and administrative systems.
Wilton Re is committed to creating solutions that enhance value for our clients, their policyholders and shareholders. Our approach is centered on building lasting relationships with our business partners and sharing resources, industry knowledge and experience in an open, transparent manner.
To review Aegon’s press release regarding the transaction, please go here.