IN A MOVE to bolster its U.S. group insurance growth strategy, Sun Life Financial purchased the U.S. group benefits business of Genworth Financial Inc.
The $650 million deal is expected to boost Sun Life's earnings per share and return on equity, according to the company, and should close in the second quarter pending approval from regulatory authorities in the United States and Canada.
With Genworth's stop-loss coverage added to Sun Life's business, Sun Life will be the second-largest U.S. medical stop-loss provider.
"The group business is one of Sun Life's core competencies, and the addition of this high-quality franchise with its talented team further strengthens our competitive position in the United States," said Sun Life Financial CEO Donald A. Stewart.
