MMC backs reinsurance platform

Intent on acquring a US life insurance company, MMC Capital, the private equity arm of Marsh, is leading a group including Vestar Capital Partners and Friedman Fleischer & Lowe in a $600m investment in Wilton Re.

Wilton Re US Holdings, a Bermuda reinsurance company, has raised $600 million (€448 million) in a private placement of stock to three private equity firms – MMC Capital, Vestar Capital Partners and Friedman Fleischer & Lowe.

A Wilton Re management team led by Chris Stroup also participated in the deal, according to a press release.

MMC Capital is the private equity division of Marsh, and manages the Trident family of funds. The group has sponsored more than fifteen insurance companies, including ACE Limited, XL Capital and AXIS Capital Holdings.

Wilton Re was formed to “provide a new source of life reinsurance capacity to life insurers in response to continuing consolidation in the US life reinsurance industry,” according to the release. The company will “shortly” buy a US insurance company to conduct its mortality business.

Over the summer, MMC Capital raised $1.1 billion (€914 million) in commitments for Trident III to make investments in the global insurance, employee benefits and financial services industry. Trident III will make equity investments of between $25 million and $150 million. MMC Capital has raised more than $3 billion since 1994, according to a press release.