Canadian Insurer To Acquire U.S. Benefits Business

The Genworth benefits unit has reported $24 million in net income $554 million in revenue during the first 3 quarters of 2006.

Genworth recently signaled that change was afoot by leaving the Windsor, Conn.-based benefits division out of a streamlining effort that put the company’s retirement and protection operations in the same segment.

Genworth employees have done a good job of building the benefits business and increasing its profits, but “we concluded it was better for this business to grow outside of Genworth,” Genworth Chairman Michael Fraizer says in a statement.

Sun Life executives say they like the deal because completing it would make Sun Life the second largest U.S. medical stop-loss provider and give it a much larger distribution network, with better access to the small-case employer market.