On Friday, Sun Life Financial Inc. said that a delay of its US annuity business sale is likely to occur. This is due to the New York Department of Financial Services has yet to approve the deal.

Last December, Sun Life announced the sale of its business valued at US$1.35 billion. Sun Life is Canada's number three insurer and announced sale of its business arm to a company connected to Guggenheim Partners. The deal is expected to boost the cash levels of the company. It is also a way to expose Sun Life to market swings. The said agreement was said to be completed before the end of June.

Recently, the New York Department of Financial Services conducted a review of private investor groups as owners of annuity businesses. Sun Life stated that the review will add delays to the closing of its deal. The deal was taken by Sun Life as it will stop selling variable annuities in the US.