Mr. Tom Murphy reports

SUN LIFE AND WILTON RE ANNOUNCE A STRATEGIC PARTNERSHIP, COMBINING DEPTH AND BREADTH OF CAPABILITIES ACROSS LIFE AND ANNUITY REINSURANCE AND ASSET MANAGEMENT

Sun Life Financial Inc. and Wilton Re have entered into a definitive agreement to establish a strategic reinsurance and asset management partnership. This partnership will combine Wilton Re's liability management expertise with Sun Life's insurance and asset management capabilities.

Wilton Re will establish Windsor Life Re, a U.S.- and Bermuda-domiciled reinsurer supporting growth of Wilton Re's core in-force life and annuity block origination in the U.S. Windsor Life Re will benefit from Wilton Re's long record of success in in-force block acquisitions, deal sourcing and unique underwriting expertise. SLC Management will be the lead asset manager for Windsor Life Re's investments and will leverage its experience in insurance asset management and its multiasset investment platform.

The partnership is expected to deploy approximately $900-million (U.S) of capital, anchored by strategic capital commitments from Sun Life and Wilton Re, each contributing approximately one-third of the total equity capitalization. Under the terms of the agreement, Windsor Life Re will reinsure from Wilton Re an initial in-force block of approximately $1.7-billion (U.S.). Future business will be ceded by Wilton Re on a quota share basis. At scale, Windsor Life Re is anticipated to grow to approximately $10-billion (U.S.) in assets.

The new partnership is expected to launch in the first half of 2027 subject to the parties obtaining required regulatory approvals and the satisfaction of customary closing conditions. Jefferies acted as the financial advisor and Sidley Austin LLP acted as the legal adviser to Sun Life. Ardea Partners LP and Wells Fargo acted as the financial advisers and Debevoise & Plimpton LLP acted as the legal advisor to Wilton Re.

About Sun Life Financial Inc.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide.

About Wilton Re

Wilton Re is a leading provider of in-force and reinsurance solutions in the North American life insurance industry.

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