A young life reinsurer says it is building the infrastructure it needs to handle large transactions.
Wilton Re Holdings Ltd., Hamilton, Bermuda, the parent of Wilton Re, Wilton, Conn., has agreed to pay Computer Sciences Corp., El Segundo, Calif., $20 million over 10 years to have CSC administer the life insurance policies Wilton Re has acquired.
The agreement calls for CSC to handle policy and claims administration, customer service, billing and premium processing for about 80,000 policies acquired by Wilton Re.
The agreement also calls for CSC to “provide the scalable foundation for future Wilton Re acquisitions,” Wilton Re says.
The CSC agreement will “allow us to be agile and aggressive with our acquisition strategy,” Enrico Treglia, chief operating officer at Wilton Re’s Wilton Re Services Inc. unit, says in a statement.
The agreement also will “provide a predictable cost structure and greater capacity to support future large-scale deals,” Treglia says.
Wilton Re began operations in 2005.
In addition to selling traditional life reinsurance, Wilton Re sells reinsurance arrangements for life insurers that want to sell blocks of business or shut down entire lines of business.
Wilton Re now has access to a total of $925 million in capital from Lehman Brothers, New York, and other investment firms, Wilton Re says.
CORRECTION: An earlier version of this article described the length of the CSC contract incorrectly.