Sun Life expects a one-time after-tax gain of about $65 million and a 1% increase in SLF and SLA LICAT ratios. Thus, the divestiture is in tandem with its growth strategy. Sun Life is also growing its voluntary benefits business (launched new products in this line) and targeting a place among the top five players. Being the largest group benefits provider in the country, this Zacks Rank #3 (Hold) insurer is shifting its growth focus toward products that require lower capital and offer more predictable earnings such as mutual funds and group benefits. The divestiture will help Sun Life intensify its focus on growing the core segments within the group benefits business. Per the divestiture deal, 100 plan sponsors and about 1.5 million insured clients and plan members/customers of Sun Life will go to Canadian Premier. The sponsored markets business includes association, affinity, and group creditor clients. Subject to the fulfillment of closing conditions, the transaction is expected to see the light of day in early 2023.
Sun life stock free#
Sun Life Financial Inc.’s ( SLF Quick Quote SLF - Free Report) wholly owned subsidiary, Sun Life Assurance Company of Canada (SLA) has agreed to divest the sponsored markets business to Canadian Premier Life Insurance Company.
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