Sun Life Financial Inc. SLF-T is selling its British division, freeing up capital from a declining operation as part of a shift toward more profitable fee-based business lines.
SLF of Canada UK Ltd. offers life insurance, pension products and annuities, and has operated as a run-off business since 2001, meaning that the company has not sought out new business and has let policies expire or has paid them off.
Phoenix Group Holdings PLC PNXGF, a London-based long-term savings and retirement business, will buy SLF for $385-million. Phoenix has more than 13 million customers and £310-billion ($485-billion) of assets under administration. The company specializes in buying insurance businesses which are no longer taking in new customers.
Sun Life chief executive officer Kevin Strain…