Sun Life Edges Further into US Employer Benefits Space

January 11, 2007( - Genworth Financial has decided to sell its US employee group benefits business for $650 million to Canadian insurer Sun Life Financial, giving Sun Life a substantial footing in US West Coast and southern states.

Michael Frazier, chairman and chief executive officer of Genworth, said in the news release that the sale was a “key strategic move to better focus Genworth for the future.” The company’s US benefits business currently provides life, disability, medical stop-loss and dental insurance to about 32,000 organizations.

Bob Salipante, president of Sun Life, told Reuters that the acquisition would bring the number of its US offices from 24 to 34, and estimated that the integration of the two businesses would cost about $38 million over the next several years.

The sale is expected to close during the second quarter of 2007, pending regulatory approval.

The Windsor, Connecticut-based Genworth’s employee benefits group business reported $31 million in net income on revenues of $717 million in 2005 and has reported $24 million in net income on revenues of $554 million through the first nine months of 2006, according to the company.

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