Sun Life Financial Inc. of Toronto announced Thursday that it has agreed to buy Genworth Financial Inc.'s U.S. group benefits business for $650 million.

Genworth's group operations primarily offer life, disability, stop-loss, and dental insurance. Buying the business would make Sun Life the second-largest U.S. medical stop-loss provider, the Canadian company said. Genworth and the business being sold are in Richmond, Va.

The acquisition is to be financed with existing capital. It is expected to close in the second quarter and is subject to regulatory approval in the United States and Canada. Sun Life said it expects the purchase to be immediately accretive to earnings per share and return on equity.

Sun Life had $339.8 billion of assets under management on Sept. 30.

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