If reports are to be believed, then one of the biggest names in the Canadian market may be about to make a dramatic U-turn in relation to its insurance platforms.
According to a Reuters exclusive, Canada Pension Plan Investment Board (CPP Investments) is looking to offload both the Ascot Group and Wilton Re insurance platforms.
The report quotes “people familiar with the matter” and claims that the U-turn has been made in the face of “intense competition”. It outlines that a sales process will begin in the new year with Wilton Re likely to be valued at more than $4 billion, and no clear indication yet given of the potential price tag for Ascot Group. It was noted that the sources said no deal was a certainty, while CPP, Ascot and Wilton Re did not offer a comment.
The move, if it does take place, comes as several private equity firms and investment managers ramp up their insurance arms – seizing on the chance to use the capital from life insurance and annuities to make further investments in corporate credit.
CPP Investments had been among the early movers, acquiring Wilton Re back in 2014 for around $1.8 billion. Meanwhile, Ascot Group was picked up for $1.1 billion in 2016.
