The Canadian company is among benefits providers including Hartford Financial Services Group Inc. that have retreated from offering variable annuities, an insurance product that offers guaranteed income for retirees. Sun Life has said the transaction will reduce volatility in earnings.
Guggenheim’s Growth
The Delaware Department of Insurance and the Financial Industry Regulatory Authority have signed off on the deal, Sun Life said last month.
Investment firms are pursuing annuity deals to add assets, betting they can manage the funds more skillfully. Philip Falcone’s publicly traded Harbinger Group Inc., which bought a life and annuity business in 2011, and Apollo Global Management LLC’s Athene arm, which agreed in December to buy Aviva Plc’s U.S. life and annuity unit, were also being reviewed by Lawsky’s office, a person with knowledge of the matter said in May.
Guggenheim Partners, run by Chief Executive Officer Mark Walter, has expanded from a family office with a handful of employees into a $180 billion global asset manager through deals including the acquisitions of Claymore Group and Rydex ETF owner Security Benefit Corp.
Walter, who shot to prominence as the man behind the $2 billion purchase of the Los Angeles Dodgers, has hired investing veterans including Henry Silverman, the former chief operating officer of Apollo, to advise on expansion.