Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2815

Sun Life Financial acquires UK business of Lincoln National

RELATED TOPICS​

Sun Life Financial is acquiring the UK operations of Lincoln National for approximately GBP195m (CAD359m).

Sun Life Financial is acquiring the UK operations of Lincoln National for approximately GBP195m (CAD359m).

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 (pictured), chief executive officer, Sun Life Financial, says: "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 per cent to GBP10.6bn (CAD19bn) 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 provides Sun Life with an estimated earnings per share accretion of CAD0.08 to CAD0.10 in 2010. Return on equity is estimated to increase by 0.2 per cent.

The two 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 IFAs, provides Sun Life with an expanded opportunity to sell additional products.

Latest News

Brown Brothers Harriman & Co has expanded its relationship with AllianceBernstein (AB), by adding to..
The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..

Related Articles

The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by