Sun Life to Sell US Annuity Business to Delaware Life Holdings for $1.35B
Sun Life Financial (NYSE: SLF) today announced the execution of a definitive agreement whereby
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 a base purchase price of US$1.35
billion, as adjusted to reflect the performance of the business through
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. 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, President and Chief Executive Officer, Sun Life
Financial, stated, "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