Sun Life to sell its U.S. annuity unit for $1.35 billion to Delaware Life
TORONTO - Sun Life Financial has a deal to sell its U.S. annuity unit and certain life insurance businesses for US$1.35 billion to Delaware Life Holdings, a company owned by shareholders of Guggenheim Partners.
"This transaction represents a transformational change for Sun Life," said Dean Connor, the Toronto-based company's president and chief executive officer.
"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."
Sun Life's statement didn't say how many of its employees would be affected by the deal, which is expected to close by the end of the second quarter 2013
However, it said the businesses being sold have employees in Wellesley, Mass., Lethbridge, Alta., and Waterford, Ireland.
Sun Life executives have scheduled a conference call with analysts to begin at 8:30 a.m. Eastern time.