Solar Life announces that it intends to sell its UK business

Sun Life forms a long-term strategic partnership with the UK’s largest long-term savings and pensions business

Toronto And London, August 4, 2022 /PRNewswire/ – Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced today that it has entered into an agreement to sell SLF of Canada UK Limited (“Sun Life UK”) to Phoenix Group Holdings plc (“Phoenix Group”) (LSE: PHNX). In the headquarters LondonPhoenix Group is the UK’s largest long-term savings and pensions business with over 13 million customers and £310 billion of assets under management.

Sun Life UK administers life and pension policies and pension blocks for UK customers. The company is closed to new sales and has been operating as a contingency business in life and pension policies since 2001.

Sun Life sells Sun Life UK to Phoenix Group for a closing price of £248 million (approx. C$ 385 million) and retains its economic interest in the UK allowance business. This transaction provides additional growth opportunities for Sun Life’s asset management businesses.

As part of the sale, Sun Life will form a long-term partnership to become a strategic asset management partner for Phoenix Group. Sun Life’s asset management companies, MFS and SLC Management, will continue to manage approx. C $9 billion Sun Life UK’s general account when the sale closes.

Phoenix Group has set a target to invest approx. 25 billion dollars Public and private fixed income and alternative investments in North America over the next five years. MFS and SLC Management will be material partners to the Phoenix Group in achieving this goal.

“We are delighted to be partnering with Phoenix Group. Great consideration has been taken in finding the right buyer and partner for our UK business. Phoenix Group is a purpose-driven company with the same values ​​as Sun Life and a strong focus on delivering results for their clients. We also bring the strength of MFS and SLC management to Phoenix Group. We are excited about our property management partnership because it brings clients. Kevin Strain, President and CEO of Solar Life. “We thank our UK team for all their efforts in delivering strong results year-on-year across our life, pensions and annuities businesses. We believe Phoenix Group will be a great company for our UK employees and clients.”

“This acquisition is very attractive to the Phoenix Group. As the UK’s largest long-term savings and pensions business with a history of closed-book mergers in the UK, we look forward to providing a long-term and secure home for Sun Life UK clients. Enabling products to be used,” he said. Andy Briggs, Phoenix Group, CEO. “I would like to take this opportunity to welcome the colleagues who are joining us from Sun Life UK. We are also delighted to enter into a new, long-term strategic asset management partnership with MFS and SLC Management, Sun Life’s Asset Management businesses. And it will further increase our illegal credit capacity North America Strengthening their strong position in the region.

Since 2016, Phoenix Group has successfully completed four acquisitions worth approximately £7.5 billion. This has helped them increase their assets under management by over 300% in the last five years through organic and inorganic growth.

Strain added: “The sale of the Sun Life UK business is consistent with our strategy to grow fee-based and capital-light businesses. It also raises capital to continue our journey to create long-term value for our shareholders. This transaction also creates an attractive long-term relationship with the UK’s leading long-term savings and pensions business.” The timing aligns with our mission to continue building our Solar Life asset management pillar by creating partnerships.

This transaction is expected to close in the first half of 2023, subject to receipt of regulatory approval and satisfaction of customary closing conditions.

Fenchurch Advisory Partners acted as financial advisor to Sun Life for this transaction and Freshfields Bruckhaus Deringer LLP acted as legal advisor.

The slides related to this announcement are available at www.sunlife.com.

About the life of the sun

Sun Life is a leading global financial services firm providing asset management, wealth, insurance and health solutions to individual and institutional clients. Sun Life has operations in markets around the world, including Canada, Americaof united kingdom, Ireland, hong kong, Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia And Bermuda. such as June 30, 2022Sun Life had total assets under management C$ 1.26 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on Toronto (TSX), new york (NYSE) and the Philippine (PSE) stock exchanges under the ticker symbol SLF.

About the Phoenix team

The Phoenix Group is the UK’s largest long-term savings and pensions business. With £0.3 trillion of assets under management, we offer c.13 million customers a wide range of products across market-leading pension, savings and life insurance brands, including regular life and solar life. We support people throughout their savings cycle, and our vision is to help more people on their journey to and from retirement by providing the right support at the right time.

A member of the FTSE 100, we are a sustainably growing business bound together by a common purpose – to help people secure a life of opportunity. This drives everything we do and is about making responsible and sustainable investment decisions and using our presence and voice to make a difference for the better for our customers, colleagues and the wider community.

We have been recognized as a leading employer for many years. We are recognized as a Living Wage Employer and a Carer Positive Role Model Employer, providing the best support for caring colleagues.

Linkedin: PhoenixGroup-UK Twitter: @PhoenixGroupUK

Forward-looking statements

From time to time, Sun Life makes written or oral forward-looking statements within the meaning of certain securities laws, including the “safe harbor” provisions of the United States Private Securities Litigation Amendment Act of 1995 and applicable Canadian securities laws. Forward-looking statements included in this release include, without limitation, statements (i) relating to our strategies, (ii) relating to our anticipated divestment of Sun Life UK, (iii) relating to our growth initiatives and other business objectives, (iv) relating to the expected timing of the closing of the transaction; (v) regarding the effect the transaction may have on our business and financial results; (vi) is dependent on or indicative of events or conditions that are predictable or future in nature; , and (vii) include expressions such as “intends”, “expects”, “will” and similar expressions.

These statements represent our current expectations, estimates and projections regarding future events and are not historical facts, and remain subject to change, particularly in light of the ongoing COVID-19 pandemic and its impact and uncertainties on the global economy. Our business. Forward-looking statements are not guarantees of future performance and risks and uncertainties are difficult to predict. The forward-looking statements in this news release do not reflect any non-recurring or other special items or any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or may occur after the date. Description of this news. The financial impact of any non-recurring or other exceptional item or transaction may be complex and the impact on our operations or results will depend on the facts of such item and we cannot meaningfully describe the expected impact or present known risks that may similarly affect our business. .

Forward-looking statements are provided to help investors and others understand the expected financial position and results of operations as of the date of this news release, as well as the transaction’s objectives, strategic priorities and business outlook. and to gain a better understanding of our expected operating environment following the transaction. Readers are cautioned that such forward-looking statements may not be relevant for other purposes and should not place undue reliance on these forward-looking statements.

The following risk factors related to our intention to transfer Sun Life UK could have an adverse effect on our forward-looking statements: (i) the ability of the parties to complete the transaction; (ii) the failure of the parties to obtain the necessary agreements and approvals or to meet the conditions for the timely completion of the transaction, or at all; (iii) our ability to realize the financial and strategic benefits of the transaction; and (iv) the impact of the announcement of the transaction and the commitment of our resources to complete the transaction. All of these risks could affect our business relationships (with current and future employees, customers, distributors and partners) and could have a material adverse effect on our current and future operations, financial condition and prospects. Other significant risks to our actual results that are materially disclosed or disclosed in forward-looking statements in this presentation are set forth in our MD&A for the period then ended. June 30, 2022 and by SLF Inc. Other annual and interim regulatory filings filed with Canadian securities regulators or filed with US securities regulators are available for review at www.sedar.com and www.sec.gov, respectively.

The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events, except as required by law.

Source: Sun Life Financial Inc.