Life insurance company Wilton Re Holdings Ltd. was looking for investment banks to advise it on a possible sale or initial public offering next year.

Wilton Re is financed by Connecticut-based private equity firm Stone Point Capital LLC. 

Bloomberg, citing sources knowledgeable on the matter, said that the potential deal can give Wilton's backers a return on the investments they have made in the company, which now totals USD1.5 billion. Wilton has a carrying value of around USD2 billion, it said. 

Wilton was created in 2005 and is currently based in Hamilton, Bermuda. Its subsidiaries include Redding Reassurance Co., Wilton Reassurance Life Co. of New York and Texas Life Insurance Co., according to its company profile.

Aside from Stone Point Capital, the life insurer had also obtained funding from private equity firms Kelso & Co., Vestar Capital Partners Inc. and Friedman Fleischer & Lowe LLC, Wilton said in a statement. 

Stone Point granted Wilton a USD1.1 billion financing in September 2004, according to its website. The private equity fund is currently raising USD4.5 billion for its latest fund, Bloomberg said.