Canadian insurance titan Sun Life Financial announced plans Thursday to reshuffle its business by separating insurance operations from its principal asset management business ahead of new capital rules from regulators, Reuters reports.
The Toronto-based company said the move involves reshuffling so that most of its asset management businesses, including U.S. annuities, will be transferred to a newly incorporated subsidiary.
Under the reorganization, Sun Life Insurance will transfer its shares of CI Funds, McLean Budden Ltd, MFS Investments and its other U.S. subsidiaries to the new subsidiary. The new business model will go into effect on Jan. 4 pending regulatory approval and will have no immediate impact on earnings, the company said.
Paul Derksen, chief financial officer, said the move will give Sun Life "increased flexibility" to benefit from new capital rules for life insurance holding companies that were recently proposed by the Office of the Superintendent of Financial Institutions.