Sun Life Drops Annuities to Focus on Employee Benefits

Delaware Life Holdings will purchase Sun Life’s domestic U.S. annuity business and certain life insurance businesses for $1.35 billion. The transaction will consist primarily of the sale of 100% of the shares of Sun Life Assurance Company of Canada (U.S.), which includes Sun Life Financial’s domestic U.S. variable annuity, fixed annuity, and fixed index annuity products, corporate and bank-owned life insurance products, and variable life insurance products. The transaction is expected to close by the end of the second quarter of 2013 subject to regulatory approvals and customary closing conditions.

Dean A. Connor, president and CEO of Sun Life Financial said, “We will continue to invest in 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 of these businesses in 2012. We will also continue to support growth in MFS, our highly successful investment manager, which has a large U.S. presence and over $300 billion of assets under management globally.”

Sun Life Financial estimates that the transaction will result in a reduction in book value of $950 million at closing. It is estimated that the impact of the transaction on Sun Life Financial is approximately ($0.22) per share of earnings in 2013, assuming actual experience in line with actuarial best estimates.  Employees of Sun Life Financial U.S. in Wellesley, Massachusetts; Lethbridge, Alberta; and Waterford, Ireland will continue to support the acquired businesses, which will be renamed “Delaware Life Insurance Company.” For more information, visit www.sunlife.com/PresentationsForInvestors.

Last Updated 9/8/2017

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