SUN LIFE announces intention to sell UK operations

Sun Life also establishes long-term strategic partnership with UK’s largest long-term savings and retirement business

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

Sun Life UK manages life and annuity insurance and annuity blocks for UK customers. The company has ceased new sales and since 2001 has operated as a run-off business in the life and annuities segment.

Sun Life to sell Sun Life UK to Phoenix Group for £248m closing price (approx. 385 million Canadian dollars) and retains economic interest in the UK paying annuity business. The transaction also provides additional growth opportunities for Sun Life’s wealth management business.

As part of the sale, Sun Life will enter into a long-term partnership and become the Phoenix Group’s strategic asset management partner. Sun Life’s asset managers, MFS and SLC Management, continue to 9 billion Canadian dollars of Sun Life UK’s general account upon completion of the sale;

Phoenix Group has set a target to invest in approx. $25 billion in North American public and private fixed income and alternative investments over the next five years. MFS and SLC Management will be key partners for the Phoenix Group in achieving this goal.

“We are very pleased to be partnering with Phoenix Group. We are also pleased with the asset management partnership that will bring the strengths of MFS and SLC Management to Phoenix Group customers.” Kevin Strain, President and CEO of Sun Life. “I would like to thank our team in the UK for delivering solid results year after year in our life insurance, annuities and annuities business. We believe the Phoenix Group will be a great organization for our UK employees and clients.”

“This acquisition is very attractive for the Phoenix Group. As the UK’s largest long-term savings and retirement business with a strong track record of UK closed book integration, we are able to provide Sun Life UK clients with a secure home for the long term. We are looking forward to benefiting from the wide range of Standard Life products in our open division.” Andy Briggs, Phoenix Group, CEO. “I would like to take this opportunity to welcome our colleagues from Sun Life UK to join us, and to enter into a new long-term strategic asset management partnership with Sun Life’s asset management businesses, MFS and SLC Management. We are pleased to announce that this partnership will complement our existing relationship and further strengthen our liquid and non-liquid credit capabilities. North America By building a strong presence in the region. “

Since 2016, Phoenix Group has completed four successful acquisitions totaling around £7.5bn. This has supported over 300% growth in assets under management over the past five years through organic and inorganic growth.

Strain said: By creating attractive long-term partnerships with the UK’s leading long-term savings and retirement businesses, we are aligned with our aim to continue building on Sun Life’s wealth management pillars. “

The transaction is expected to close in the first half of 2023, subject to regulatory approvals and customary closing conditions.

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

Slides associated with this announcement are available at www.sunlife.com.

About Sunlife

Sun Life is an international financial services organization that provides wealth management, wealth, insurance and health solutions to individual and institutional clients. Sun Life operates in many markets around the world. Canada, usa, England, Ireland, Hong Kong, Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia When Bermuda. Current June 30, 2022Sunlife’s total assets under management is 1.26 trillion Canadian dollars. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. Toronto (TSX), New York (NYSE) and the Philippines (PSE) stock exchanges under the ticker symbol SLF.

About Phoenix Group

The Phoenix Group is the UK’s largest long-term savings and retirement business. With £0.3 trillion in assets under management, we serve approximately 13 million customers with a broad range of market-leading annuities, savings and life insurance brands including Standard Life and Sun Life. We support people throughout their savings cycle and our vision is to help more people on their journey to retirement by giving them the right support at the right time.

A member of the FTSE 100, we are a sustainably growing company united by a common purpose to help people secure the lives they deserve. This drives everything we do, making responsible and sustainable investment decisions and using our presence and voice to make a difference for our clients, colleagues and the wider community. means to promote

We have been recognized as a major employer for many years. We are certified as a Living Wage Employer and a Caregiver Positive Exemplary Employer for providing the best support to our colleagues who are caregivers.

Linkedin: PhoenixGroup-UK Twitter: @PhoenixGroupUK

Forward-Looking Statements

Sun Life does not make forward-looking statements, whether written or oral, within the meaning of certain securities laws, including the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. I have something to do. Forward-looking statements included in this release include (i) statements regarding our strategy; (ii) statements regarding the anticipated sale of Sun Life UK; and (iii) statements regarding our growth initiatives and other business objectives. , (iv) including, but not limited to, statements; (v) the expected impact of the transaction on our business and financial results; and (vii) terms such as “intend,” “expect,” “will,” and those containing expressions similar to these.

These statements represent our current expectations, estimates and projections regarding future events and are not historical facts, particularly the ongoing and developing COVID-19 pandemic and its impact on the global economy, and Given its uncertain impact, it is subject to change. our business. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that are difficult to predict. Forward-looking statements in this news release may not include non-recurring or other special items or potential disposals, mergers, acquisitions or other business combinations that may be announced or that may occur after the date It does not reflect the potential impact of any other transaction. of this news release. In the event of non-recurring or other special items or transactions, the financial impact could be complex and the impact on our business or results will depend on the facts specific to such items. , cannot describe the expected impact in a meaningful way. Similarly, you can present known risks that impact your business.

Forward-looking statements are intended to provide investors and others with an understanding of the company’s financial condition and results of operations, expected as of the date of this news release, as well as the objectives, strategic priorities, and outlook for the business after the transaction. It is presented to assist you in doing so. , and to better understand our business environment expected after the transaction. Readers are cautioned that such forward-looking statements may not be suitable for other purposes and they should not place undue reliance on these forward-looking statements.

The following risk factors relate to our intention to sell Sun Life UK and could materially and adversely affect our forward-looking statements. (i) the ability of the parties to complete the transaction; (ii) the failure of both parties to obtain the necessary consents and approvals or otherwise meet or fail to meet the conditions for the timely completion of the transaction; (iii) our ability to realize the financial and strategic benefits of the transaction; (iv) the effect of announcement of the transaction and the dedication of our resources to complete the transaction; All of these risks may affect our business relationships (including relationships with future and future employees, clients, distributors and partners) and may affect our current and future operations, financial condition and It could have a material adverse effect on the outlook. Other important risk factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this presentation are set forth in MD&A for the period ended. June 30, 2022 In addition, SLF Inc.’s other annual and interim regulatory filings filed with the Canadian securities regulators or filed with the U.S. securities regulators are available at www.sedar.com and www.sec, respectively. You can find it in .gov.

We undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law. We do not owe.

Source: Sunlife Financial Co., Ltd.