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Deals & People December 13, 2007
Sun Life Sells US RK Biz to The Hartford
The Hartford has made another acquisition – this time Sun Life Retirement Services (U.S.), Inc. (RSI), a 401(k) plan administration business.
Reported by Nevin E. Adams
“After a thorough review, we determined that the best course of action is to focus on parts of the U.S. retirement and wealth market where we have or can achieve competitive advantage, scale, and a market leadership position,” said Bob Salipante, President, Sun Life Financial U.S. “Among a number of important strengths, I am delighted the depth of talent and experience of RSI’s staff was a key factor in The Hartford’s decision to acquire the business.’
According to a press release, RSI provides administration services to bundled and unbundled defined contribution plans, serving approximately 6,000 retirement plan sponsors and 465,000 retirement plan participants in the United States.
Sun Life Financial’s wealth strategy includes its presence in asset management through its subsidiary Massachusetts Financial Services Company (MFS). The announcement noted that MFS has “strong distribution relationships with both RSI and The Hartford which will continue when the RSI business moves to The Hartford.’
The transaction is expected to close in the first quarter of 2008.