Sun Life Financial to sell US annuity business for USD1.35bn
Sun Life Financial is selling its domestic US annuity business along with certain life insurance businesses to Delaware Life Holdings, a company owned by shareholders of Guggenheim Partners, for a base purchase price of USD1.35bn.
Employees of Sun Life Financial US in Wellesley, Massachusetts; Lethbridge, Alberta; 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.
Dean A Connor (pictured), president and chief executive officer, Sun Life Financial, says: "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 US operations on our areas of greatest strength and opportunity, and crystallises 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.
"Consistent with our Four Pillar strategy unveiled in March, we will continue to invest in both our US 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 US presence and over USD300bn of assets under management globally."
Todd Boehly, speaking on behalf of Delaware Life Holdings, says: "Together with Sun Life Financial's employees, we look forward to maintaining a high level of customer service, strong capitalisation and ratings, and to building on this impressive platform."
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