Initially, the deal Sun Life Financial (SLF -0.29%) struck in December to sell its U.S. annuity portfolio and some life insurance products for $1.35 billion to Delaware Life Holdings, a Guggenheim Partners-owned company, was scheduled to be completed by Q2 of 2013.
While the proposed deal has been approved by some regulators, including the Financial Industry Regulatory Authority (FINRA), the New York Department of Financial Services (NYDFS) is continuing its review process, making it unlikely the transaction will be completed as originally planned, Sun Life announced today.
The unexpected delay involving the NYDFS comes as it reviews private investor groups as owners of annuity business, as is the case with Delaware Life Holding's Guggenheim Partners. Though Sun Life expects the additional NYDFS review will cause delays, both parties to the deal are working with regulators in an effort to "close the transaction as soon as possible," the company said.
