Sun Life Financial acquires UK business of Lincoln National



    
    Excellent fit will deliver substantial benefits to customers and
    shareholders
    

    TORONTO, June 15 /CNW/ - Sun Life Financial Inc. (TSX/NYSE:   SLF)
announced today it is acquiring the United Kingdom operations of Lincoln
National Corporation. The value of the transaction is approximately (pnds
stlg)195 million (CDN$359 million). 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
between signing and closing.
    Donald A. Stewart, Chief Executive Officer, Sun Life Financial, said,
"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. This focused transaction demonstrates our disciplined
approach to acquisitions and to our business. Importantly, the transaction
demonstrates our financial strength even during these turbulent times."
    The acquisition will increase Sun Life UK's assets under management by
nearly 60% to (pnds stlg)10.6B (CDN$19B); and double the number of policies in
force to 1.1 million. The combined operation will carry the Sun Life Financial
of Canada name upon integration, a brand that has been active in the UK for
more than a century. The transaction is financially attractive, providing Sun
Life with an estimated earnings per share accretion of CDN$0.08 to $0.10 in
2010. Return on equity is estimated to increase by 0.2%.
    Robert C. Salipante, President, Sun Life Financial International, said,
"Scale in the combined operation will enable Sun Life to strengthen its focus
on customers even further in the UK and optimize a highly experienced team,
proven processes and profitable business model."
    The two complementary operations each hold books of business in life
insurance, pensions and annuities. Adding this book will enhance Sun Life UK's
earnings power, while Lincoln's business and distribution platform in the UK,
including relationships with Independent Financial Advisors, provides Sun Life
with an expanded opportunity to sell additional products.

    About Sun Life Financial

    Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth accumulation
products and services to individuals and corporate customers. Chartered in
1865, Sun Life Financial and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Ireland,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
March 31, 2009, the Sun Life Financial group of companies had total assets
under management of CDN$375 billion. For more information please visit
www.sunlife.com.
    Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol SLF.

    About Lincoln Financial Group

    Lincoln Financial Group is the marketing name for Lincoln National
Corporation (NYSE:  LNC) and its affiliates. With headquarters in the
Philadelphia region, the companies of Lincoln Financial Group had assets under
management of US$171 billion as of March 31, 2009. Through its affiliated
companies, Lincoln Financial Group offers: annuities; life, group life and
disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds;
managed accounts; institutional investments; and comprehensive financial
planning and advisory services. Affiliates also include: Delaware Investments,
the marketing name for Delaware Management Holdings, Inc. and its
subsidiaries; and Lincoln UK. For more information, including a copy of the
most recent SEC reports containing the balance sheets, please visit
www.LFG.com.

    Forward-Looking Statements

    Certain statements contained in this document, including those relating
to Sun Life Financial's "the Company" strategies and other statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "expects", "anticipates", "intends",
"plans", "believes", "estimates" or similar expressions, are forward-looking
statements within the meaning of securities laws. Forward-looking statements
include the information concerning possible or assumed future results of
operations of the Company. These statements represent the Company's
expectations, estimates and projections regarding future events and are not
historical facts. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that are difficult to predict.
Future results and stockholder value of SLF Inc. may differ materially from
those expressed in these forward-looking statements due to, among other
factors, the matters set out under "Risk Factors" in the Company's AIF and the
factors detailed in its other filings with Canadian and U.S. securities
regulators, including its annual and interim MD&A, and annual and interim
financial statements, which are available for review at www.sedar.com and
www.sec.gov.
    Factors that could cause actual results to differ materially from
expectations include, but are not limited to, investment losses and defaults
and changes to investment valuations; the performance of equity markets;
interest rate fluctuations; other market risks including movement in credit
spreads; possible sustained economic downturn; risks related to market
liquidity; market conditions that adversely affect the Company's capital
position or its ability to raise capital; downgrades in financial strength or
credit ratings; the impact of mergers and acquisitions; the performance of the
Company's investments and investment portfolios managed for clients such as
segregated and mutual funds; insurance risks including mortality, morbidity,
longevity and policyholder behaviour including the occurrence of natural or
man-made disasters, pandemic diseases and acts of terrorism; changes in
legislation and regulations including tax laws; regulatory investigations and
proceedings and private legal proceedings and class actions relating to
practices in the mutual fund, insurance, annuity and financial product
distribution industries; risks relating to product design and pricing; the
availability, cost and effectiveness of reinsurance; the inability to maintain
strong distribution channels and risks relating to market conduct by
intermediaries and agents; currency exchange rate fluctuations; the cost,
effectiveness and availability of risk mitigating hedging programs; the
creditworthiness of guarantors and counterparties to derivatives; risks
relating to operations in Asia including risks relating to joint ventures; the
impact of competition; risks relating to financial modelling errors; business
continuity risks; failure of information systems and Internet enabled
technology; breaches of computer security and privacy; dependence on
third-party relationships including outsourcing arrangements; the ability to
attract and retain employees; the impact of adverse results in the closed
block of business; the ineffectiveness of risk management policies and
procedures and the potential for financial loss related to changes in the
environment. The Company does not undertake any obligation to update or revise
these forward-looking statements to reflect events or circumstances after the
date of this report or to reflect the occurrence of unanticipated events,
except as required by law.

    The financial estimates presented in this document are unaudited.





For further information:

For further information: Media Relations Contact: Steve Kee, Assistant
Vice-President, Communications, Tel: (416) 979-6237, steve.kee@sunlife.com;
Investor Relations Contact: Paul Petrelli, Vice-President, Investor Relations,
Tel: (416) 204-8163, investor.relations@sunlife.com


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