TORONTO (AP) -- Sun Life, Canada's third largest life insurer, is selling its U.S. annuity business and certain life insurance businesses for $1.35 billion to Delaware Life Holdings.
Sun Life President Dean Connor said Monday the sale significantly advances their strategy of reducing Sun Life's risk profile and earnings volatility.
The U.S. annuity business has been challenging for Sun Life in recent years because of a combination of low interest rates and a substantial increase in the amount of capital required by regulators.
The sold businesses have employees in Wellesley (Massachusetts), Lethbridge (Alberta, Canada) and Waterford (Ireland).
Delaware Life Holdings is a company owned by shareholders of Guggenheim Partners, which led a group that bought the Los Angeles Dodgers baseball team this year.