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Sun Life snaps up Lincoln’s UK business

Sun Life Financial has acquired the UK operations of Lincoln National Corporation in a deal worth almost £200m, Money Marketing can reveal.

The business will be integrated with Sun Life’s UK operations, and will take on the Sun Life Financial of Canada brand.

The transaction, which is anticipated to be completed in the third quarter of 2009, is subject to regulatory approvals and to purchase price adjustments related to market and business performance.

Lincoln is one of main players in the UK variable annuity market. The Hartford pulled out of the market in May, following price increases from MetLife and Aegon.

Aegon recently announced plans to replace its 5 for Life product with a less generous guaranteed product due to the increased cost of securing the guarantees in the market.

Sun Life Financial chief executive officer Donald A. Stewart says: “Sun Life is seizing a compelling opportunity to expand the scale of its UK business by acquiring a highly complementary and sizable block of business.

“The combined operation is expected to generate attractive returns and serve to position Sun Life for future growth in one of the world’s largest life insurance markets.”

The acquisition will increase Sun Life UK’s assets under management by nearly 60 per cent to £10.6bn and double the number of policies in force to 1.1 million.

The two operations hold books of business in life insurance, pensions and annuities.

Sun Life says Lincoln’s business and distribution platform in the UK, including the firm’s relationships with IFAs, will give it more opportunity to sell additional products.

Lincoln UK sales and marketing director Helen Turner says: “The acquisition by Sun Life Financial Inc. will further strengthen our business and provide us with expanded opportunities.

“We will continue with the promotion of the i2Live product, Financial Foundations and Unit Trust range and will provide full Q&A and further briefings over the coming weeks and months as we start to make plans for when the acquisition is completed, anticipated to occur by the end of September this year.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 15th June 2009 at 2:08 pm

    Sun Life snaps up Lincoln’s UK business
    “Sun Life says Lincoln’s business and distribution platform in the UK, including the firm’s relationships with IFAs, will give it more opportunity to sell additional products.” Unfortunately, this overlooks two rather fundamental things. Firstly, if the experience of other IFA’s with Sun Life over the past 10 years has been anything like ours, it will take very considerably more to repair our relationship with them than Sun Life buying up Lincoln and waving a few new product brochures in our direction. Secondly, IFA’s are not merely conduits for selling life companies’ products. It might have betrayed less ignorance of the IFA sector on the part of Sun Life if their spokesman had said something more along the lines of “enhancing our range of products to suit the needs of IFA’s and their clients.” But hey, what do I know? Business is business, right?

  2. Sun Life snaps up Lincoln’s UK business
    Let’s hope they also snap up Lincoln’s good service otherwise we are all in the doo doo!

  3. Sun Life and Lincoln Life
    The consolidation continues and Julian Stevens appears to have the same problems as we do with their admin etc. Lincoln’s policies were not perfect, but they had an excellent service, and were helpfl instead of obstructive.

  4. Sun Life snaps up Lincoln’s UK business
    I hope the returns for Lincoln’s policy holders will be better than those of SLFC UK policy holders since de-mutualisation. Bonus’s and especially terminal bonus’s have been derisory since SLFC shut up shop in 2001. Personally I would not do business with any company associated with SLFC. Once bitten, twice shy.

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