Sun Life Financial has completed the sale of Sun Life UK to Phoenix Group, a London-based long-term savings and retirement business.
This transaction will see Sun Life UK’s life and pension policies and annuity blocks for UK Clients move to Phoenix Group.
The deal was first announced in August of 2022, with Phoenix Group disclosing that it would be purchasing the UK Business for £248 million, funded from existing cash resources.
At the time, Phoenix group said that the deal is expected to deliver £470 million of incremental long-term cash generation, with approximately 30% of this cash generation to emerge in the first three years.
Sun Life UK has been closed to new sales and has been operating as a run-off business in the life and pension policies segment since 2001.
Sun Life states that it will retain its economic interest in UK’s payout annuities business. Further, as part of the sale, Sun Life will begin a long-term partnership to become a strategic asset management partner to Phoenix Group.
Sun Life’s asset management companies, MFS and SLC Management, will continue to manage approximately $8 billion of Sun Life UK’s general account.
Phoenix Group has set a goal to invest approximately $25 billion in North American public and private fixed income and alternative investments over the next five years. Sun Life notes that MFS and SLC Management will be material partners to Phoenix Group in achieving this goal.
