Sun Life Financial to purchase Lincoln National’s U.K. business

Sun Life Financial Inc. today said that it will buy Lincoln National Corp.’s business in the United Kingdom for about $318.6 million.
JUN 15, 2009
Sun Life Financial Inc. today said that it will buy Lincoln National Corp.’s business in the United Kingdom for about $318.6 million. Toronto-based Sun Life expects to wrap up the acquisition, which is subject to regulatory approval and price adjustments, in the third quarter. Once Sun Life assumes the Radnor, Pa., insurer’s U.K. operations, Sun Life UK’s assets under management will grow to about 10.6 billion pounds, or $17.3 billion — a 60% gain — as well as double the number of in-force policies, to 1.1 million. Both companies hold books of life insurance, pension and annuities business. The new entity will carry the Sun Life Financial of Canada label after the integration, the Toronto insurer said. “We’ve always said the right fit is important for us in any acquisition,” said Steve Kee, a spokesman for Sun Life. “This doesn’t preclude us from future deals.” News of the sale arrives on the heels of Lincoln National’s announcement to that it will take government aid in the Department of the Treasury’s Capital Purchase Program, which is part of the Troubled Asset Relief Program. Lincoln National said that it would issue $950 million in preferred stock, pursuant to the Treasury’s CPP program. Today, Lincoln National also said that it would offer $600 million of its own common shares and raise another $500 million in senior debt, thus using a combination of securities offerings and federal aid to strengthen its capital base.

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