A Canada-based life insurer is exiting the variable annuities and individual life products markets in the U.S. not quite a week after ING announced it would be taking a huge charge as it too exited the U.S. variable annuities market.
Sun Life Financial Inc., Toronto, (NYSE: SLF), disclosed its decision on December 12 to halt sales of its domestic U.S. variable annuity and individual life products effective December 30. The decision follows completion of a strategic review of the company's businesses.
In a press statement, Sun Life President and Chief Executive Officer Dean Connor says that a desire to improve returns on shareholders' equity and reduce volatility were among the factors contributing to the company's market reorientation.
Going forward, says Connor, Sun Life will seek to strengthen its business in four key areas, including: (1) insurance, wealth management and employee benefits; (2) group insurance and voluntary benefits in the U.S.; (3) investment/asset management (including MFS, a SunLife's investment manager that has a large U.S. presence and more than $250 billion (U.S.) of assets under management globally); and (4) Sun Life's market presence in Asia.
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