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Canada's Sun Life signs C$530 million annuity deal

Published 2016-01-26, 10:34 a/m
© Reuters. Canada's Sun Life signs C$530 million annuity deal
LCO
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SLF
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TORONTO, Jan 26 (Reuters) - Canadian insurer Sun Life
Financial Inc SLF.TO signed a C$530 million ($375.59 million)
annuity deal on Tuesday with two Canadian companies looking to
reduce the risk on their pension plans.
Toronto-based Sun Life, which declined to disclose the names
of those companies, said it was the biggest transaction of its
kind in Canada.
The insurer, which sold its first annuity in 1880, is seeing
more such deals. The Canadian market for cutting the risk on
pension plans tripled to C$7.5 billion in 2015 from the previous
year, Sun Life says.
"We see a lot of runway in this market," said Brent Simmons,
senior managing director of defined benefit solutions at Sun
Life.
"More and more plan sponsors are looking to insurance
companies such as Sun Life to transfer that pension risk from
their balance sheet over to the insurance company's balance
sheet," he said in an interview.
The so-called de-risking of pension plans is a global trend
that has been gaining momentum in recent years.
Sun Life's stock was up nearly 1 percent, at C$38.57, in
line with broader market gains.
($1 = 1.4111 Canadian dollars)

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