In a move announced early on April 3, Sun Life Financial Inc. announced that it will sell its closed pension and annuity blocks of business in the United Kingdom (UK), retain its economic interest in the UK payout annuities business and will continue to manage between $8-billion and $9-billion of Sun Life UK’s general account upon the close of the sale.
The move to divest Sun Life Canada UK Limited, selling the business to Phoenix Group Holdings plc, “is consistent with our strategy to grow fee-based and capital light businesses. It also frees up capital,” says Sun Life Financials’ president and CEO, Kevin Strain. Sun Life is selling its UK business to Phoenix group for approximately $385-million. The deal is expected to close during the first half of 2023.
“Sun Life UK has been closed to new sales and has been operating as a run-off business in the life and pension policies segment since 2001,” the firm writes in a statement announcing the sale. “Sun Life will retain its economic interest in UK’s payout annuities business.” In an investor presentation, they add that the move allows the company to focus on growth in strategic, long-term asset management partnerships.
