NU Online News Service, Oct. 29, 2004, 3:00 p.m. EDT
Sun Life Financial Inc. says it plans to put most of the asset management business of its Sun Life Assurance Company of Canada subsidiary into a new corporate entity.[@@]
Subject to regulatory approvals, a newly incorporated holding company will become effective January 4, 2005.
Under the reorganization, Sun Life Assurance will transfer its shares of CI Fund Management Inc., McLean Budden Limited, MFS Investments and its other U.S. subsidiaries to the new holding company.
Operations remaining in Sun Life Assurance would consist mostly of the life, health and annuities businesses of Sun Life Financial Canada, most of the life and health businesses of Sun Life Financial US and all of the operations of Sun Life Financial UK and Sun Life Financial Asia.
Sun Life says the move will allow it to position its capital structure to benefit from new capital rules for life insurance holding companies recently proposed by Canada’s Office of the Superintendent of Financial Institutions.
The reorganization is not expected to have any impact on the financial strength ratings of Sun Life Assurance, the company says.