Sun Life Sells US annuity business for $1.35 Billion USD

By Bizclik Editor
Share

 

Sun Life Financial announced today its entrance into an agreement to sell its US-based annuity business for $1.35 billion USD to Delaware Life Holdings, a company owned by Guggenheim Partners.

“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. 

Share

Featured Articles

Over Half of US CEOs Back Trump to Boost Global Economy

52% of US CEOs pick Donald Trump over Kamala Harris when it comes to boosting the world economy. CEOs outside of America though are equally divided

Why the Cloud is Murky for Microsoft CEO Satya Nadella

On the face of it, demand has never been higher for Microsoft Azure’s data-centre capacity. So why is Microsoft forecasting slower cloud revenue growth?

Businesses Are Scapegoat in UK Budget Tax Rises

Owners of larger businesses will shoulder burden of almost all this year’s £25bn tax hike, leading to estimated 50,000 job losses and lower pay awards

What Can McDonald's CEO Do to Win Back Trust?

Leadership & Strategy

5 Things Spelling Trouble for Alphabet CEO Sundar Pichai

Technology & AI

How Standard Chartered CEO Bill Winters Is Shaking Things Up

Leadership & Strategy