Sun Life Financial Inc. and its wholly owned subsidiary, Sun Life Assurance Co. of Canada, have announced that their boards of directors approved, subject to regulatory approvals, a reorganization that would transfer most of the latter's asset management businesses, including its U.S. annuities business, to a newly incorporated unit.
Under the reorganization, which is to take effect Jan. 4, Sun Life Assurance would transfer its shares of CI Fund Management Inc., McLean Budden Ltd., MFS Investments, and its other U.S. subsidiaries, the company said Thursday.
The reorganization would let Sun Life Financial, a Toronto-based insurer, optimize its capital structure by positioning it to benefit from capital rules for Canadian life insurance holding companies recently proposed by the Office of the Superintendent of Financial Institutions.
