Sun Life Financial (SLF) has inked a definitive agreement to dispose of its domestic US annuity and certain life insurance businesses for $1.35bn to Delaware Life, a company owned by shareholders of Guggenheim Partners.

The transaction comprises 100% share sale of SL Assurance Company of Canada (US), which includes domestic US variable annuity, fixed annuity and fixed index annuity products, corporate and bank-owned life insurance products and variable life insurance products.

The deal will help the company to reduce its risk exposure and focus on US insurance operations as well as growing employee benefits and voluntary benefits franchises.

Following closure of transaction, the acquired enterprise will be re-branded as Delaware Life Insurance Company, while SLF staff in Wellesley, Massachusetts; Lethbridge, Alberta; and Waterford, Ireland will continue to support the acquired entity.

Guggenheim Partners will offer services to the company including investment management, as per terms of the deal.

Pending regulatory approval and satisfying customary closing conditions, the transaction is likely to complete by the end of second quarter of 2013.

Morgan Stanley & Co and Debevoise & Plimpton served as financial advisor and legal advisor to Sun Life Financial, respectively.

Chartered in 1865, the company and its partners operate in Canada, the US, the UK, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.