Dive Brief:

• Sun Life Financial Inc. has agreed with Assurant, Inc. to purchase Assurant's Employee Benefits business for $975 million
• The transaction will create the sixth largest group benefits business in the U.S., with the combined business having one of the broadest product portfolios in the industry.
• The transaction will significantly increase the size and scale of the Sun Life U.S. Group Benefits business, growing business in-force by more than 50% to approximately $4 billion, strengthening the company's partnerships with brokers and private exchanges and supporting investments in technology and distribution, according to Sun Life.

Dive Insight:

Dean Connor, President and Chief Executive Officer of Sun Life Financial, said in a statement that the acquisition is directly on strategy, accelerating the growth of the company's U.S. Group Benefits business and expanding the scope of its benefits business in North America.

The transaction will add significant new capabilities to the Sun Life U.S. Group Benefits business, including a dental insurance business with the second largest proprietary provider network in the U.S., a Group Life and Disability business, vision products, client technology and other voluntary products and capabilities. 

If anything, this development gives HR decision makers a potential new avenue or market to choose from when offering their employees voluntary benefits, which are becoming popular ways to retain top talent.