Wednesday, Sun Life announced that Sun Life Assurance Company of Canada is selling its life reinsurance business to Warren Buffet's Berkshire Hathaway Life Co. of Nebraska. Sun Life's CEO is quoted in the company's press release as stating “Our reinsurance business is profitable, but it is not a growth area for Sun Life Financial and this transaction releases capital which can be put to work in other businesses.” The transaction is expected to be completed by December 31, 2010.
Sun Life reinsures approximately $113 billion (Canadian) in life insurance. The purchase price has not been disclosed by the company. The deal is subject to regulatory approval and is expected to expected to increase Sun Life’s Minimum Continuing Capital and Surplus Requirement (MCCSR) ratio, by 10 to 14 percentage points. Sun Life’s MCCSR ratio was 210% as of June 30, 2010.
For the press release click here: https://www.sunlife.com/Global/News+and+insights/News/News+releases/2010/Sun+Life+sells+reinsurance+business+to+Berkshire+Hathaway?vgnLocale=en_CA
Sarah Delaney