Wilton Re, an insurer owned by the Canada Pension Plan Investment Board (CPPIB), has agreed to acquire the majority of Aegon’s operations in Canada for $600 million.
The units being acquired are Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient, Inc.
Wilton Re will fund the transaction with additional equity capital provided by the CPPIB.
“We are delighted to work on this important transaction with Aegon,” says Chris Stroup, chairman and CEO of Wilton Re. “We intend to support the profitable growth of this business.”
The acquired insurance business includes a $10.6-billion portfolio of high-quality assets as of Sept. 30, 2014, and comprises individual life, annuity and segregated funds policies as well as credit insurance products.
The closing of the deal is subject to customary closing conditions and certain regulatory approvals and is expected to occur in the first quarter of 2015.
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