NEW YORK (AP) — Canadian life insurance and retirement services provider Sun Life Financial Inc. plans to close its U.S. variable annuity and individual life products to new sales starting on Dec. 30.
The company said Monday that it decided to stop selling the products because it is looking to lower volatility and improve shareholder return by concentrating on businesses that have better growth and return potential.
Sun Life said its decision does not impact existing customers and their policies. It will incur a one-time charge of about $75 million to $100 million related to its plans. Part of the charge is expected to be recorded in the fourth quarter, with the rest charged in 2012.
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The company plans to concentrate its U.S. efforts on increasing sales in its employee benefits business and growing its voluntary benefits segment, which both require less capital.
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