Excellent fit will deliver substantial benefits to customers and shareholders
TORONTO, June 15 2009 – Sun Life Financial Inc. (TSX/NYSE: SLF) announced today it is acquiring the United Kingdom operations of Lincoln National Corporation. The value of the transaction is approximately (pnds stlg)195 million (CDN$359 million). The transaction, which is anticipated to be completed in the third quarter of 2009, is subject to regulatory approvals and to purchase price adjustments related to market and business performance between signing and closing.
Donald A. Stewart, Chief Executive Officer, Sun Life Financial, said, “Sun Life is seizing a compelling opportunity to expand the scale of its UK business by acquiring a highly complementary and sizable block of business. The combined operation is expected to generate attractive returns and serve to position Sun Life for future growth in one of the world’s largest life insurance markets. This focused transaction demonstrates our disciplined approach to acquisitions and to our business. Importantly, the transaction demonstrates our financial strength even during these turbulent times.”
The acquisition will increase Sun Life UK’s assets under management by nearly 60% to (pnds stlg)10.6B (CDN$19B); and double the number of policies in force to 1.1 million. The combined operation will carry the Sun Life Financial of Canada name upon integration, a brand that has been active in the UK for more than a century. The transaction is financially attractive, providing Sun Life with an estimated earnings per share accretion of CDN$0.08 to $0.10 in 2010. Return on equity is estimated to increase by 0.2%.
Robert C. Salipante, President, Sun Life Financial International, said, “Scale in the combined operation will enable Sun Life to strengthen its focus on customers even further in the UK and optimize a highly experienced team, proven processes and profitable business model.”
The two complementary operations each hold books of business in life insurance, pensions and annuities. Adding this book will enhance Sun Life UK’s earnings power, while Lincoln’s business and distribution platform in the UK, including relationships with Independent Financial Advisors, provides Sun Life with an expanded opportunity to sell additional products.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2009, the Sun Life Financial group of companies had total assets under management of CDN$375 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 ticker symbol SLF.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of US$171 billion as of March 31, 2009. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and isability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of the most recent SEC reports containing the balance sheets, please visit www.LFG.com.