Sun Life Announces Conversion Privilege of Class A Non-Cumulative Rate Reset Preferred Shares Series 10R and Class A Non-Cumulative Floating Rate Preferred Shares Series 11QR

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Sun Life (TSX/NYSE: SLF) announced it will not redeem its Class A preferred Series 10R and Series 11QR shares on September 30, 2026. Holders of each series may convert all or part of their shares one-for-one into the other series on that date, subject to minimum outstanding share conditions that can trigger automatic conversion.

The company will set new dividend rates for Series 10R (five-year term to September 29, 2031) and Series 11QR (three-month term to December 30, 2026) on August 31, 2026. The conversion election deadline is 5:00 p.m. ET on September 16, 2026. Subject to regulatory approval, Sun Life may redeem Series 10R and Series 11QR at specified cash amounts, generally $25.00 per share (or $25.50 for Series 11QR on non-scheduled dates) starting September 30, 2031, plus declared and unpaid dividends.

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TORONTO, Aug. 14, 2026 /PRNewswire/ -- Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF)  ("Sun Life") today announced that it does not intend to exercise its right to redeem its currently outstanding Class A Non-Cumulative Rate Reset Preferred Shares Series 10R (the "Series 10R Shares") nor its currently outstanding Class A Non-Cumulative Floating Rate Preferred Shares Series 11QR (the "Series 11QR Shares") on September 30, 2026. As a result, subject to certain conditions, the holders of Series 10R Shares have the right to convert all or part of their Series 10R Shares on a one-for-one basis into Series 11QR Shares, and the holders of Series 11QR Shares have the right to convert all or a part of their Series 11QR Shares on a one-for-one basis into Series 10R Shares, in each case on September 30, 2026. Holders of Series 10R Shares who do not exercise their right to convert their Series 10R Shares into Series 11QR Shares on such date will retain their Series 10R Shares, and holders of Series 11QR Shares who do not exercise their right to convert their Series 11QR Shares into Series 10R Shares on such date will retain their Series 11QR Shares.

The foregoing conversions are subject to the conditions that: (i) if Sun Life determines that there would be less than one million Series 10R Shares outstanding after September 30, 2026, then all remaining Series 10R Shares will automatically be converted into Series 11QR Shares on a one-for-one basis on September 30, 2026, and (ii) alternatively, if Sun Life determines that there would be less than one million Series 11QR Shares outstanding after September 30, 2026, then all remaining Series 11QR Shares will automatically be converted into Series 10R Shares on a one-for-one basis on September 30, 2026. In either case, Sun Life will give a written notice to that effect to any registered holder affected by the preceding minimums on or before Monday, September 21, 2026.

The dividend rate applicable to the Series 10R Shares for the five-year period commencing on September 30, 2026 and ending on September 29, 2031, and the dividend rate applicable to the Series 11QR Shares for the three-month period commencing on September 30, 2026 and ending on December 30, 2026, will be determined on Monday, August 31, 2026 and will be announced in a news release on Monday, August 31, 2026.

Beneficial owners of Series 10R Shares and Series 11QR Shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to ensure that they meet the deadline to exercise such right, which is 5:00 p.m. (ET) on Wednesday, September 16, 2026.

Subject to regulatory approval, Sun Life may redeem all or any part of the outstanding Series 10R Shares, at Sun Life's option, by the payment of an amount in cash for each share so redeemed of $25.00, together with all declared and unpaid dividends to the date fixed for redemption, on September 30, 2031 and on September 30 in every fifth year thereafter. Subject to regulatory approval, Sun Life may redeem all or any part of the then outstanding Series 11QR Shares, at Sun Life's option, by the payment of an amount in cash for each share so redeemed of (i) $25.00, together with all declared and unpaid dividends to the date fixed for redemption in the case of redemptions on September 30, 2031 and on September 30 every five years thereafter, or (ii) $25.50, together with all declared and unpaid dividends to the date fixed for redemption in the case of redemptions on any other date.

The Series 10R Shares and the Series 11QR Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and subject to certain exceptions, may not be offered, sold or delivered, directly or indirectly, in the United States of America for the account or benefit of U.S. persons. This release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

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 June 30, 2026, Sun Life had total assets under management of $1.70 trillion. For more information, please visit sunlife.com. 

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

Note to editors: All figures in Canadian dollars

To contact Sun Life media relations, please email Media.Relations@sunlife.com

To contact Sun Life investor relations, please email Investor_Relations@sunlife.com 

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SOURCE Sun Life Financial Inc. - Financial News

FAQ

What did Sun Life (SLF) announce about its Series 10R and Series 11QR preferred shares for September 30, 2026?

Sun Life announced it will not redeem its Series 10R and Series 11QR preferred shares on September 30, 2026. According to Sun Life, holders instead gain a one-for-one conversion right between the two series on that date, subject to minimum outstanding share conditions.

How does the conversion privilege work for Sun Life SLF Series 10R and Series 11QR shares on September 30, 2026?

Holders of Series 10R may convert into Series 11QR, and holders of Series 11QR may convert into Series 10R, one-for-one. According to Sun Life, conversions occur on September 30, 2026, with an election deadline of 5:00 p.m. ET on September 16, 2026.

What are the key deadlines for Sun Life (SLF) preferred share conversion in 2026?

The conversion election deadline is 5:00 p.m. ET on September 16, 2026, with conversions effective September 30, 2026. According to Sun Life, dividend reset rates will be set and announced on August 31, 2026, and any automatic conversion notice will be sent by September 21, 2026.

When will dividend rates be reset for Sun Life SLF Series 10R and Series 11QR preferred shares?

Dividend rates for Series 10R and Series 11QR will be determined on August 31, 2026. According to Sun Life, the Series 10R rate will apply for five years to September 29, 2031, while the Series 11QR rate will apply for the three-month period to December 30, 2026.

Under what conditions can Sun Life automatically convert Series 10R or Series 11QR preferred shares after September 30, 2026?

Automatic conversion can occur if fewer than one million shares of either series would remain outstanding after September 30, 2026. According to Sun Life, the affected series would be fully converted one-for-one into the other, with written notice provided to registered holders by September 21, 2026.

What are the future redemption terms for Sun Life (SLF) Series 10R and Series 11QR preferred shares starting in 2031?

Subject to regulatory approval, Sun Life may redeem Series 10R and Series 11QR at $25.00 per share on September 30, 2031 and every fifth year thereafter. According to Sun Life, Series 11QR may also be redeemed at $25.50 per share on other dates, plus declared and unpaid dividends.

How large is Sun Life’s business as of June 30, 2026, and where does SLF trade?

Sun Life reported total assets under management of $1.70 trillion as of June 30, 2026. According to Sun Life, its shares trade on the Toronto, New York and Philippine stock exchanges under the ticker symbol SLF, with all figures reported in Canadian dollars.