Transaction highlights growing de-risking
trend in Canada
TORONTO, Nov. 21, 2019 /CNW/ - Today, Sun Life announced a
$293 million annuity buy-out
transaction with Rayonier Advanced Materials ("RYAM") to transfer a
portion of its Canadian defined benefit (DB) pension
obligations.
"We are delighted to be working with RYAM and their consultant
Mercer, to help right-size RYAM's pension plans and meet their
business objectives, while protecting their pensioners' benefits,"
said Brent Simmons, Senior Managing
Director & Head, Defined Benefit Solutions, Sun Life.
"Transactions of this size are complex and require all parties to
be organized and nimble. Both RYAM and Mercer were prepared and
took a planful approach to help execute this deal."
As part of the transaction, Sun Life will take over the
responsibility for pension benefits owed to nearly 1,500
Ontario and Quebec pensioners and beneficiaries. Sun Life
will begin administering pension benefits for these plan members
early in 2020. Members' pension benefits will remain unchanged.
"With this transaction, we are proud to ensure the financial
security of many former Tembec employees, while strengthening the
balance sheet and solidifying RYAM's ability to help support
current and future retirees in their retirement," said Jay Posze, Senior Vice-President, Human
Resources, Rayonier Advanced Materials.
This transaction highlights a growing trend in Canada. Organizations with DB pension plans
are seeking better risk management solutions so they can focus on
their core business while ensuring members' benefit security. Sun
Life provides a full range of innovative, cost-effective solutions
to help DB plan sponsors at any stage of their pension de-risking
journey. Backed by solid financial ratings, capital strength and
strong risk management practices, Sun Life has been the leading
provider of Canadian group annuities since 2008.
An annuity buy-out is a group annuity policy that transfers all
the risks for a group of members from an employer's balance sheet
to an insurer's balance sheet in exchange for a premium. The
insurer assumes responsibility for making pension payments to the
employer's plan members, with no change to the payment frequency or
amounts.
About Defined Benefit Solutions
Sun Life's Defined
Benefit Solutions is a team of experienced pension and investment
professionals, whose mandate is to help Canadian companies manage
the risks of their defined benefit pension plans. The team works
closely with plan sponsors, consultants and other industry experts
to deliver innovative, customized solutions, including annuity
buy-outs, annuity buy-ins, longevity insurance and liability driven
investments. For more information please visit
sunlife.ca/DBSolutions.
Forward Looking Statements
Certain statements in this news release are forward-looking
statements within the meaning of certain securities laws, including
the "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Information about risk factors relating to
Sun Life can be found in the annual information form of Sun Life
Financial Inc. for the year ended December 31, 2018 under
the heading "Risk Factors" and other regulatory filings filed with
or furnished to Canadian and U.S. securities regulators available
at www.sedar.com and www.sec.gov.
Annuity buyout policy issued by Sun Life Assurance Company of
Canada.
About Sun Life
Sun Life is a leading international financial services organization
providing insurance, wealth and asset management solutions to
individual and corporate Clients. Sun Life has operations in a
number of markets worldwide, including Canada, the United
States, the United Kingdom,
Ireland, Hong Kong, the
Philippines, Japan,
Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of September 30, 2019, Sun Life had total assets
under management of $1,063 billion.
For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
About Rayonier Advanced Materials
Rayonier Advanced
Materials is a global leader of cellulose-based technologies,
including high purity cellulose specialties, a natural polymer
commonly found in cell phones, computer screens, filters and
pharmaceuticals. Rayonier Advanced Materials also manufactures
products for lumber, paper and packaging markets. With
manufacturing operations in the U.S., Canada and France, Rayonier Advanced Materials employs
approximately 4,200 people and had revenues of US$2.1 billion in 2018. More information is
available at www.rayonieram.com.
Note to Editors: All figures in Canadian dollars except as
otherwise noted.
Media Relations Contact:
Kim Armstrong
Manager, Corporate Communications
T. 416-979-6207
kim.armstrong@sunlife.com
SOURCE Sun Life Financial Inc.