Sun Life Financial Inc. is selling its domestic U.S. annuity business and certain life insurance businesses to Delaware Life Holdings for $1.35 billion, Sun Life announced today.

Delaware Life Holdings is owned by shareholders of Guggenheim Partners.

The acquired businesses in Wellesley, Mass.; Lethbridge, Alberta; and Waterford, Ireland, will be named Delaware Life Insurance Company. Guggenheim Partners will provide services to the company, including investment management. The transaction is expected to close by the end of the second quarter next year, according to Sun Life.

Dean A. Connor, president and CEO of Sun Life Financial, says, “This transaction represents a transformational change for Sun Life. It significantly advances our strategy of reducing Sun Life’s risk profile and earnings volatility, focuses our U.S. operations on our areas of greatest strength and opportunity, and crystallizes future earnings and capital releases that will further  support our growth and shareholder value creation.”

Sun Life will continue to invest in the U.S. employee benefits business and will continue to support growth in MFS, the investment manager that has a large U.S. presence and more than $300 billion of assets under management globally, Connor says.