A major deal has been struck between two of the biggest life insurance names in Canada.
Canadian Premier Life Insurance has reached an agreement with Sun Life Assurance Company of Canada to acquire its sponsored market business. The move sees more than 100 plan sponsors and around 1.5 million insured clients and plan members switch from Sun Life across to Canadian Premier.
In announcing the deal, Suzanne Huovinen, chief executive officer of Canadian Premier, remarked that it would build on its long-standing expertise in the market.
“This is an exciting milestone for our company as we look to serve more Canadians through our affinity groups and creditor insurance businesses,” she said. “We’ve provided Canadian families with coverage for more than six decades. Our new clients will continue to receive the same high-level of service and care they did with Sun Life. We are very excited to welcome a new group of employees to our Canadian Premier family and continue their great service to these customers.”
The company noted that it would continue to invest in strategic acquisitions and partnerships and that this deal would add to the scale of its core creditor insurance product suite.
Meanwhile, Dave Jones, president of Sun Life Health, noted that the company would be a great fit to take over the business.
“They have exceptional depth and experience and I know our clients will be in great hands. We are committed to working closely with Canadian Premier to plan for a smooth and seamless transition,” he said. “This transaction will allow Sun Life to focus on strategically growing the core segments within our group benefits business. As the largest group benefits provider in the country, we’re dedicated to delivering industry leading products and wellness solutions.”
The transaction is expected to close in early 2023, subject to satisfaction of customary closing conditions, such as the receipt of regulatory approvals. It is expected that Sun Life will enjoy a one-time after-tax gain of around $65 million.
