Sun Life Financial has reached an agreement to acquire the U.S. benefits business of Genworth Financial for $650 million. It provides group life, disability, medical stop-loss and dental insurance to 2.9 million people at 32,000 organizations.

Sun Life said the deal with add “significant scale and scope” to its U.S. business and immediately impact both earnings per share and return on equity.

“The group business is one of Sun Life’s core competencies, and the addition of this high-quality franchise with its talented team further strengthens our competitive position in the United States,” said Donald A. Stewart, chief executive officer of Sun Life Financial.

Sun Life is financing the transaction, which is expected to close in the second quarter, with existing capital.

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