NY regulator delays Sun Life’s sale of U.S. annuity business

On December 17, 2012, Sun Life Financial Inc. entered into a definitive stock purchase agreement to sell its U.S. annuities business and certain of its U.S. life insurance businesses to Delaware Life Holdings, LLC, which was expected to close before the end of the second quarter of 2013, subject to regulatory approvals and other closing conditions. This target date likely won’t be met.

Read: Sun Life to sell U.S. annuity business for US$1.35 billion

Approvals for the transaction have been obtained from a number of regulators, including the Delaware Department of Insurance and the Financial Industry Regulatory Authority (FINRA).

The approval process is also underway with the New York Department of Financial Services. The Department has recently undertaken a review of private investor groups as owners of annuity businesses, and it’s anticipated the review will delay the close of the transaction beyond the end of the second quarter of 2013.

Read: Hot topics: Relevance and future of retirement annuities

The firm continues to work with Delaware Life Holdings, LLC, to obtain approval from the New York Department of Financial Services for the transaction and to close the transaction as soon as possible. Both parties have made substantial progress in preparing for the close and for the transition of employees and operations to support the business going forward.

Also read:

Tax problems with cross-border life insurance

Life insurance helps the economy

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.