Sun Life Financial Inc. is selling its U.K. pension and annuities business.

The company has entered an agreement to sell SLF of Canada U.K. Ltd. to U.K.-based long-term savings and retirement business Phoenix Group Holdings for a closing price of $385 million.

Sun Life will retain its economic interest in Sun Life U.K.’s payout annuities business and will form a long-term partnership to become a strategic asset management partner to Phoenix Group, according to a press release.

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Sun Life U.K. is closed to new sales and has been operating as a run-off business in the life and pension policies segment since 2001, said the release, noting MFS Investment Management and SLC Management will continue to manage roughly $9 billion of Sun Life U.K.’s general account upon the close of the sale.

“We’re excited to partner with Phoenix Group,” said Kevin Strain, Sun Life’s president and chief executive officer, in the release. “A great deal of consideration was taken to find the right buyer and partner for our U.K. business. Phoenix Group is a purpose-led company with similar values to Sun Life and a strong focus on delivering outcomes for their customers.”

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