Sun Life Financial wholly-owned subsidiary Sun Life Assurance Company of Canada has agreed to acquire US-based Assurant’s employee benefits business, for around $975m.
The deal is said to be accomplished through reinsurance agreements, asset transfers and the direct purchase of certain legal entities.
Sun Life Financial president and CEO Dean Connor said: "The acquisition of the Assurant employee benefits business is directly on strategy, accelerating the growth of our US Group Benefits business and expanding the scope of our benefits business in North America."
Assurant Employee Benefits provides voluntary and employer-paid products, comprising dental, long-term and short-term disability and life insurance.
Based in Kansas City of Missouri, the business employs around 1,700 individuals in its several offices across the US.
Once the deal concludes, Sun Life Financial US will provide protection through around 64,000 employers in small, medium and large workplaces.
Assurant president and CEO Alan Colberg said: "The employee benefits business is well-positioned to succeed as a valuable asset to Sun Life Financial as they strengthen their position as a leader in group insurance and voluntary benefits in the US."
Subject to regulatory approvals and customary closing conditions, the deal is expected to complete by the end of first quarter 2016.
The Sun Life Financial Canadian headquarters in Waterloo, Ontario. Photo: courtesy of Giligone.