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(MARK BLINCH/REUTERS)

Growth appeal draws CPPIB into insurance sector

The Canada Pension Plan Investment Board blazed into the U.S. life insurance sector Friday with the purchase of Bermuda-based insurance solutions company Wilton Re Holdings Ltd. for $1.8-billion (U.S.), a company it intends to use as a vehicle for growth in the market.

The fund was attracted to the life insurance business south of the border because of its capacity to “generate cash flow over multiple decades.” At the same time, CPPIB will invest capital to expand the company.