Following Thursday’s news that U.S. regulators seized troubled Washington Mutual Inc. — and that most of its operations were sold to J.P. Morgan Chase & Co. Inc. — Toronto-based Sun Life Financial Inc. announced it has $270 million of securities exposure to the financial institution.

Sun Life holds $18 million in bonds issued by WaMu, $134 million in WaMu bonds and $118 million in bonds of WaMu preferred funding.

Although these holdings represent less than 1% of Sun Life’s $100-billion in invested assets, the company expects its earnings to be hit by these holdings in the third quarter ending Sept. 30.

The amount of the charge has yet to be determined, as it depends on the amount of expected recoveries and actuarial cash flow testing.

Sun Life said with its strong balance sheet, it remains well positioned to fulfill all of its obligations.