Wilton Re Holdings Ltd., a life reinsurer backed by Stone Point Capital LLC, is interviewing investment banks to advise it on a potential sale or initial public offering next year, people familiar with the matter said.
The two options could provide Wilton’s private-equity backers with a return on the $1.5 billion they’ve invested in the company since 2004, the people said, asking not to be identified discussing private information. Wilton has about $2 billion in book value, one person said.
Wilton, based in Hamilton, Bermuda helps life insurers reduce risk by backing some of their policies, and it acquires businesses that have stopped issuing new coverage. Its subsidiaries include Redding Reassurance Co., Wilton Reassurance Life Co. of New York and Texas Life Insurance Co., according to its website.
Stone Point Chief Executive Officer Charles Davis and Ray Eckert, a Wilton Re spokesman, didn’t return calls for comment. Wilton has also raised money from Kelso & Co., Vestar Capital Partners Inc. and Friedman Fleischer & Lowe LLC, according to company statements.
Stone Point invested in Wilton from a $1.1 billion fund that it closed in 2004, when the private-equity firm was still part of Marsh & McLennan Cos., according to data compiled by Bloomberg. Buyout funds typically have a life of nine years.
Stone Point, a Greenwich, Connecticut-based firm that invests in financial services, is seeking $4.5 billion for its latest fund, two people familiar with the matter said in September.