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INFRONT Timely issues that matter to you REUTERS/Mark Blinch Sun Life Financial President and CEO Dean Connor speaks at the company’s annual meeting in Toronto. On Guggenheim, Sun Life Financial, and Annuities The Guggenheim / Sun Life Financial deal forces a look at what is and what could be. By Linda Koco W ouldn’t you know it? Once again, just when the annuity industry had stopped talking about the Guggenheim Partners expansion into “the annuity space,” the Chicago–and New York–based private equity went and made another annuity-infused deal. The natural question is, will this deal have much impact on the annuity market? First, an overview of the deal. This time, Guggenheim Partners made their move through a company they own 8 called Delaware Life Holdings. This firm has agreed to buy the domestic U.S. annuity business and certain life insurance businesses of Sun Life Financial, Toronto. It will be a cash transaction, for $1.35 billion. Once the deal is done, the company’s name will change to Delaware Life Insurance Co. Sun Life provided these other highlights: The sale includes Sun Life Financial’s domestic U.S. variable annuity, fixed annuity and indexed annuity products, corporate and bank-owned life insurance products and variable life insurance products. InsuranceNewsNet Magazine » January 2013 The transaction is expected to close by the end of second quarter 2013, though that’s subject to regulatory approvals and closing conditions. Guggenheim Partners will provide services to the company including investment management. Market Impact On the surface level, this deal would appear to have no overpowering market impact on the U.S. annuity business. After all, Sun Life Financial had already announced in late 2011 that it would stop selling new annuities. So most annuity professionals have been all but expecting the Canadian company

January 2013

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