Sun Life Financial completes $114M in annuity purchases

Executive Summary

• Sun Life Financial Inc. completed two annuity buy-in transactions totaling $114 million with the boards of trustees of the New Brunswick shared risk plans for former employees of Fraser Papers Inc.
• The transaction eliminates uncertainty for former employees whose pensions were impacted by Fraser Papers' 2009 CCAA filing, enabling the termination of the shared risk plans and concluding the CCAA process for these specific members.
• The deal highlights Sun Life's leadership in the pension risk transfer market, where it has received over $22 billion in pension obligations since 2008.

Key Details

• Transaction Value: $114 million in total annuity purchases.
• Counterparties: The boards of trustees of the two New Brunswick shared risk plans for former employees of Fraser Papers Inc.
• Advisors: Paul Chang Consulting advised on the transaction.
• Operational Impact: The agreement allows for the termination of the shared risk plans and ends the CCAA process for these plan members.
• Future Obligations: Sun Life will ensure uninterrupted payment of monthly pensions to the plan members.
• Market Context: Since 2008, over $70 billion in pension obligations have been transferred to insurers industry-wide; Sun Life has been on the receiving end of more than $22 billion of these obligations.
• Company Assets: As of Sept. 30, 2025, Sun Life reported total assets under management of $1.62 trillion.

Notable Quotes

• "We're proud to have played a role in helping secure benefits for Fraser Papers' plan members... This transaction showcases our commitment to developing solutions that protect pensioners, even in the most challenging circumstances." — Mathieu Tessier, Vice-President, Client Relationships and Innovation, Defined Benefit Solutions, Sun Life.
• "Paul Chang Consulting's expert advice to our board has been instrumental in obtaining the desired result for our plan members in a timely and efficient manner... We appreciate the excellent cooperation and flexibility that Sun Life demonstrated throughout the process." — Paul McKinley, Board Chairman, Fraser Salaried Pension Plan.