Sun Life Sells US annuity business for $1.35 Billion USD
“This transaction represents a transformational change for Sun Life. It significantly advances our strategy of reducing Sun Life’s risk profile and earnings volatility, focuses our U.S. operations on our areas of greatest strength and opportunity, and crystallizes future earnings and capital releases that will further support our growth and shareholder value creation. It also transfers this business to a financially strong buyer that understands and is committed to the annuity and life insurance sectors, which will benefit customers and the outstanding employees who will continue to support them.”
Operations of Sun Life’s US business, which includes certain life insurance businesses, located in Wellesley, Massachusetts; Lethbridge, Alberta; and Waterford, Ireland will also be acquired and will run as Delaware Life Insurance Company. The transaction is expected to close by end of Q2 2013.
“Consistent with our Four Pillar strategy unveiled in March, we will continue to invest in both our U.S. employee benefits business, which is already a top 10 player, and in our growing voluntary benefits business. We have made excellent progress in growing both of these businesses in 2012. We will also continue to support growth in MFS, our highly successful investment manager that has a large U.S. presence and over US$300 billion of assets under management globally,” continued Connor.
This transaction is expected to reduce Sun Life Financial’s book value by $950 million at closure.