Sun Life Financial Inc. today announced that Delaware Life Holdings—a company owned by shareholders of Guggenheim Partners—will purchase Sun Life’s domestic U.S. annuity business and certain life insurance businesses for US$1.35 billion.
“This transaction represents a transformational change for Sun Life,” said Dean A. Connor, the company’s president and CEO. “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.
Employees of Sun Life Financial U.S. in Wellesley, Mass., Lethbridge, Alta., and Waterford, Ireland, will continue to support the acquired businesses, which will be renamed Delaware Life Insurance Company. Guggenheim Partners will provide services to the company, including investment management.
The transaction is expected to close by the end of Q2 2013, subject to regulatory approvals and customary closing conditions.
Connor said Sun Life will continue to focus on its employee benefits and voluntary benefits businesses in the U.S. market. The company will also continue to grow its investment management operations in the U.S. through the Sun Life-owned MFS Investment Management.