Sun Life Financial Services of Canada Inc. announced today that it has signed a definitive agreement for the sale of its U.K. group insurance business to Unum Ltd., a U.K. subsidiary of UnumProvident Corp. Terms of the deal were not disclosed.

Sun Life Financial confirmed that the proceeds of the transaction will be used for general corporate purposes and that it expects the impact of the transaction on operating earnings per share to be neutral in 2003.

The sale, which is subject to approval from regulators in the U.K., is expected to close in the first quarter of 2003.

“With the sale of the U.K. group insurance business, we are continuing our efforts to refine Sun Life Financial’s business profile in order to focus on markets where we are well-positioned for future growth,” said Donald Stewart, CEO of Sun Life Financial, in a news release.

Sun Life Financial’s U.K. group insurance business is based in Basingstoke. It business has about 4,800 plans in force covering approximately 1 million members. Sun Life Financial’s individual life insurance business, which remains closed to new business, is not part of this transaction.

Unum Ltd. is the U.K.’s leading provider of income protection insurance, with more than 30 years experience in the U.K. market.