Sun Life Sells Reinsurance Business To Berkshire

[Parsad]

Financial terms not disclosed.  Cheers!

 

http://www.theglobeandmail.com/globe-investor/sun-life-sells-reinsurance-unit-to-berkshire/article1774898/

[StubbleJumper]

Hmmmm....  I'm guessing that Warren wouldn't have needed his elephant gun for that acquisition.....

[shalab]

Sun Life's reinsurance business has 70 employees in offices in Canada, the U.S. and Ireland. The unit assumes risks from life reinsurers and has life insurance in-force of $113-billion.

 

113 billion in float is a huge amount - not sure the terms of the transaction...

[Myth465]

Seems like a smart transaction. That much float can act as a liability in the wrong hands, right now its earning nothing vs 5% - 6% some years ago.

[barminov]

Sun Life's reinsurance business has 70 employees in offices in Canada, the U.S. and Ireland. The unit assumes risks from life reinsurers and has life insurance in-force of $113-billion.

 

113 billion in float is a huge amount - not sure the terms of the transaction...

 

Life insurance in-force does not equal float. Life insurance in-force is the face amount of all outstanding policies plus dividends. Float is a small fraction of $113 billion.

[shalab]

Life insurance in-force does not equal float. Life insurance in-force is the face amount of all outstanding policies plus dividends. Float is a small fraction of $113 billion.

 

You are right - the float here is likely a small amount probably in the low single billions like the equitas deal.