2 Min Read
(Recasts with interview with Sun Life chief investment officer)
By Allison Lampert
June 30 (Reuters) - Sun Life Financial Inc said on Tuesday it will buy U.S.-based investment management company Prime Advisors Inc, the latest deal by the Canadian insurer as it seeks to expand its asset management operations.
Prime is Sun Life's third acquisition of an asset manager since January. Once all three close, Sun Life will oversee about C$50 billion ($40.12 billion) in assets for third parties, the company said.
Toronto-based Sun Life, Canada's third-largest insurer, said the acquisition of Prime, which has about $13 billion in assets under management, would be in cash, but it did not disclose the transaction amount.
Sun Life Chief Investment Officer Steve Peacher said the management of properties and capital for third parties such as pension funds and insurers is a growth sector.
"We think we're positioned to grow in these areas," he said in an interview. "But we don't have a specific assets-under-management target."
Peacher said Sun Life would now focus on integrating the companies, as opposed to actively hunting for new acquisition targets.
"I think we'll take a breather for a while," he said.
The company bought New York-based Ryan Labs Asset Management in January to win more business from U.S. pension funds and other institutional investors.
Sun Life followed that up last month with the C$560 million acquisition of North American real estate investment manager Bentall Kennedy Group.
$1=$1.25 Canadian With additional reporting by Anannya Pramanick in Bengaluru; Editing by Kirti Pandey; and Peter Galloway