Sun Life Financial, Canada's third-largest life insurance company, announced on Monday a deal to sell its annuity and some life insurance businesses in the United States for $1.35 billion.
The buyer is a company whose owners include Guggenheim Partners, which might be best known for heading up the group that acquired the Los Angeles Dodgers earlier this year. Guggenheim Partners has expanded beyond money management into insurance and investment banking, among other businesses. With former Bear Stearns chief executive, Alan Schwartz, as its executive chairman, Guggenheim, which is based in New York and Chicago, has more than $160 billion in assets under management.
The sale of the Sun Life busin esses had been expected after the company announced late last year that it would stop selling new annuities. The acquired businesses will be renamed the Delaware Life Insurance Company.
The chief executive of Sun Life, Dean A. Connor, said in a statement: “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 that will further support our growth and shareholder value creation.â€
The transaction is expected to close by the end of the second quarter next year.
Morgan Stanley and the law firm of Debevoise & Plimpton advised Sun Life Financial.
