TORONTO, Jan. 13, 2003 – Sun Life Financial Services of Canada Inc. (NYSE/TSX: “SLF”) announced today that it has signed a definitive agreement for the sale of its U.K. group insurance business to Unum Limited, a U.K. subsidiary of UnumProvident Corporation. Although the terms of the transaction were not disclosed, Sun Life Financial confirmed that the proceeds of the transaction will be used for general corporate purposes and that it expects the impact of the transaction on operating earnings per share to be neutral in 2003. The sale, which is subject to approval from regulators in the U.K., is expected to close in the first quarter of 2003.
“With the sale of the U.K. group insurance business, we are continuing our efforts to refine Sun Life Financial’s business profile in order to focus on markets where we are well-positioned for future growth,” said Donald A. Stewart, Chief Executive Officer of Sun Life Financial. “We are very pleased to have found our buyer in Unum, as they will continue to service our group insurance customers with the same quality of service and attention they have come to expect.”
Sun Life Financial’s U.K. group insurance business is based in Basingstoke and is among the top providers of both group life and group income protection in the U.K. This business has about 4,800 plans in force covering approximately one million members. Sun Life Financial’s individual life insurance business, which remains closed to new business, is not part of this transaction.
Unum Limited, a U.K. subsidiary of UnumProvident Corporation, is the U.K.’s leading provider of income protection insurance, with more than 30 years experience in the U.K. market.
Morgan Stanley & Co. Incorporated acted as financial advisors on behalf of Sun Life Financial for this transaction.
Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of September 30, 2002 the Sun Life Financial group of companies has total assets under management of CDN $347 billion.
Sun Life Financial Services of Canada Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol “SLF”.Tags: Capgemini, Efma, InsurTech, World Insurance Report