Sun Life Assurance Company of Canada has entered into an agreement to sell its life reinsurance business to Nebraska-based Berkshire Hathaway Life.

The transaction is expected to increase Sun Life’s Minimum Continuing Capital and Surplus Requirement (MCCSR) ratio, by 10 to 14 percentage points. Sun Life’s MCCSR ratio was 210% as of 30 June 2010.

Sun Life’s reinsurance business has approximately 70 employees in offices in Canada, the US and Ireland. The unit assumes risks from life reinsurers and has life insurance in-force of CDN$113bn.

Sun Life CEO Donald Stewart said, the reinsurance business is profitable, but it is not a growth area for Sun Life Financial and this transaction releases capital which can be put to work in other businesses.

The transaction is subject to regulatory approval and is expected to be completed on 31 December 2010.