Canadian life insurer Sun Life Financial Inc. (SLF) said Monday
it has agreed to sell its U.S. annuity business and certain
life-insurance businesses to Delaware Life Holdings for $1.35
billion, a move aimed at lowering its risk profile and earnings
volatility.
Analysts have said a sale of the Toronto-based insurer's unit
would be positive at is would de-risk the company's equity-market
exposure and limit its interest-rate exposure.
Sun Life said Monday the sale will result in a reduction in book
value of 950 million Canadian dollars ($963 million) at closing and
is expected to reduce earnings by about 22 Canadian cents a share
in 2013.
As a result of the sale, Sun Life said its earnings
sensitivities to equity markets would be reduced by 50% and
earnings sensitivities to interest rates would be reduced by
35%.
Closing is expected by the end of the second quarter, subject to
approvals and closing conditions.
Sun Life is Canada's third-largest life insurer, behind Manulife
Financial Corp. (MFC) and Great-West Lifeco Inc. (GWO.T).
Write to Judy McKinnon at judy.mckinnon@dowjones.com
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