Sun Life Assurance Company of Canada, a wholly-owned subsidiary of Sun Life Financial Inc. (TSX/NYSE: SLF), has signed a $150 million annuity policy with Canadian Wheat Board (CWB) that transfers investment and longevity risk from CWB’s defined benefit pension plan to Sun Life Financial.
The agreement is unique in the Canadian market because it involves pension income that grows with inflation as well as the innovative “annuity buy-in” solution. In addition, Sun Life Financial provided the investment management expertise to transition CWB’s existing asset portfolio to purchase the annuity policy.
