Sun Life Financial Services of Canada Inc. has now completed its acquisition of Clarica Life Insurance Co.

With the deal complete, Sun Life says it will immediately implement integration plans, led by Bob Astley, Clarica’s president and CEO, who is also now president of Sun Life Financial’s Canadian operations. “Transition teams composed of staff from both organizations have already made significant progress on planning our integration. Because of such a strong team effort, we hit the ground running today,” says Astley.

Concurrent with the integration process, Sun Life intends to seek approval to amalgamate its two subsidiaries, Clarica Life and Sun Life Assurance, into one company effective on or about Dec. 31, 2002. The amalgamated company is currently expected to operate under the legal name of Sun Life Assurance Co. of Canada, while continuing to market products under both the Sun Life Financial and Clarica brands.

The proposed amalgamation is subject to review by an independent actuary and the approval by the boards of directors, voting policyholders and shareholders of both companies, and regulators in Canada and the U.S. Amalgamation is expected to simplify business processes and operations and reduce operating costs. It will have no effect on policyholders’ rights and benefits under their existing contracts.

The firm says that in Canada, the combined organization will be a leader in virtually all of its markets. The Sun Life brand will be used in selected retail product and distribution channels, including IQON, and group retirement services and group insurance. The Clarica brand will be used through its captive sales force of 4,000 reps.

Under this transaction, each Clarica common share was exchanged for 1.5135 common shares of Sun Life Financial Services of Canada Inc.

“We are ready to focus on building the Canadian-based international financial services powerhouse created by this transaction,” says Don Stewart, chairman and CEO. “Our combined world-class workforce, intense customer focus and dedication to building shareholder value will drive our efforts to meet stakeholder commitments.”