Canadian Premier Life Insurance Company (Canadian Premier) has facilitated an agreement to take over the sponsored markets business from Sun Life Assurance Company of Canada, a comprehensively possessed subsidiary of Sun Life Financial Incorporation. Sponsored markets are inclusive of diverse associations & affinities, and group creditor clients. This endeavour will witness more than 100 plan sponsors and approximately 1.5 million insured customers shift from Sun Life to Canadian Premier. Upon accomplishment, this transaction will enhance Canadian Premier’s long-lasting presence and proficiency in the Canadian market.
Canadian Premier acquires Sun Life’s sponsored markets
Suzette Huovinen, CEO of Canadian Premier, stated that this was an exciting breakthrough for their firm as they sought to deliver more Canadians via their affinity groups and creditor insurance businesses. Canadian Premier facilitated Canadian families with coverage for over 60 years. Their new clients will continue to obtain the similarly high level of service and care that they possessed with Sun Life, Huovinen stated. The CEO of Canadian Premier went on to indicate that they were extremely excited to welcome a new band of employees to their Canadian Premier family.
Canadian Premier continues to invest in and mature its business enterprise in Canada, both naturally and via strategic acquisitions and collaborations. The firm aids financial entities, retailers, distribution partners, and affinity groups deal with business challenges with pertinent, client-centric insurance solutions. The acquisition augments the scale to Canadian Premier’s fundamental creditor insurance product range and delivers the firm with a niche to adjacent markets in the association and affinity business.
The President of Sun Life Health, Dave Jones, stated that Canadian Premier is an apt fit to acquire their association & affinity and creditor group insurance businesses. Jones stated that the firm had excellent depth and expertise and he indicated that their clients would be in capable hands. Sun Life Health was committed to working closely with the firm to strategize for a hassle-free and seamless changeover, Jones indicated. Additionally, he stated that the acquisition will allow Sun Life to concentrate on tactically maturing the central domains within their group benefits business enterprise. As the most humongous group benefits provider in the nation, the firm was devoted to serving industry-leading products and wellness solutions, Jones said.
Sun Life is one of the pioneers in the Canadian group benefits market. They deliver coverage to more than 5 million employees and their dependents. Every year, Sun Life aids the health care necessities of Canadians with over 80 million claims rewarded.
The acquisition is estimated to close in the dawn of 2023, with a great focus on the satisfaction of customary closing conditions, inclusive of receipt of regulatory approvals.
Upon the accomplishment of the acquisition, Sun Life is estimated to deliver a one-time after-tax benefit of around USD 65 million, with a complementing 1% surge to the SLF and SLA LICAT ratios, and around USD 0.03 recession in annual underlying revenues per share going onward.