Sun Life reaches settlement in principle to resolve class action

TORONTO, April 30, 2026 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced today that it has reached a settlement in principle to resolve a class action relating to individual life insurance policies sold and issued by the Metropolitan Life Insurance Company ("MetLife") in the 1980s and 1990s, which Sun Life inherited through historical Canadian acquisitions. This matter does not involve any policies or products sold by Sun Life.

The proposed settlement will resolve this long-standing litigation, providing certainty for all parties. The settlement and notice to class members are subject to court approval. If approved, Sun Life would provide up to $213.5 million settlement value to eligible policyholders, which is expected to result in a charge to Q1 2026 reported net income of approximately $145 million.

These proceedings relate to the interpretation of policy language in these historic MetLife policies. MetLife provided an indemnity relating to these policies. Accordingly, if the settlement is approved by the court, Sun Life will seek full recourse from MetLife pursuant to the indemnity.

These legal proceedings have been previously disclosed in Sun Life's consolidated financial statements, most recently in Note 22G of our 2025 Annual Consolidated Financial Statements.

About Sun Life

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, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2025, Sun Life had total assets under management of $1.60 trillion. For more information, please visit www.sunlife.com. 

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Forward-Looking Statements

Certain statements in this news release, including, but not limited to: (i) statements relating to the proposed settlement amount; (ii) statements relating to the expected charge to Sun Life's Q1 2026 reported net income; (iii) statements relating to Sun Life seeking full recourse against Met Life; and (iv) statements that include words such as "aims", "would", "will", and similar expressions, are forward-looking and are subject to inherent risks and uncertainties, and are based on certain key assumptions, including that the settlement is approved as proposed. The forward-looking statements in this news release represent our current expectations regarding future events as of the time of this news release and are not historical facts. The results or events predicted in these forward-looking statements may differ materially from actual results or events and we cannot guarantee that any forward-looking statement will materialize. All such forward-looking statements are made pursuant to the "safe harbour provisions" of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. Except as may be required by law, we do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.

Note to editors: All figures in Canadian dollars

To contact Sun Life media relations, please email [email protected]

 To contact Sun Life investor relations, please email [email protected]

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SOURCE Sun Life Financial Inc. - Financial News