It took about a year of discussions and negotiations; it was incredibly innovative and understood to be the first of its kind in Canada.
But when it was all over two Canadian pension funds — whose names have not been disclosed — paid Sun Life Assurance Company of Canada a combined one-time premium of $530 million and transferred so-called investment, longevity and inflation risk to the insurance unit of Sun Life Financial Inc. In other words future funding of the promised benefits was offloaded to Sun Life.
At $530 million, Sun Life said that the transaction creates the largest group annuity in Canadian history. In 2013, Sun Life says it completed a deal with the Canadian Wheat Board valued at $150 million.