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

Sun Life will have 8 million Series 10R preferred shares outstanding, paying 5.519% annually with issuer redemption rights from 2031.

Rhea-AI Summary

Sun Life (SLF) will consolidate its Class A preferred share structure on September 30, 2026, following limited take-up of its conversion privilege between Series 10R and Series 11QR shares.

Holders elected to convert 1,400 of 6,838,672 Series 10R Shares into Series 11QR and 621,829 of 1,161,328 Series 11QR Shares into Series 10R. Because fewer than 1,000,000 Series 11QR Shares would remain, Sun Life will automatically convert all outstanding Series 11QR into Series 10R on a one-for-one basis and no further 10R-to-11QR conversion is permitted. As of September 30, 2026, there will be 8,000,000 Series 10R Shares and no Series 11QR Shares outstanding, with Series 10R listed on the TSX as SLF.PR.H. The Series 10R dividend rate for September 30, 2026–September 29, 2031 will be 5.519% per year, or $0.344938 per share quarterly, and the shares will be redeemable at $25.00 per share on September 30, 2031 and every fifth year thereafter, subject to regulatory approval.

Positive

• 8,000,000 Series 10R shares outstanding after conversion simplifies preferred structure
• Series 10R dividend set at 5.519% annually, or $0.344938 quarterly, for 2026–2031
• Issuer redemption option at $25.00 per Series 10R share from September 30, 2031, subject to approval

Negative

• None.

News Explained

The stated 5.519% Series 10R dividend is payable quarterly only as and when declared by Sun Life’s board and subject to the Insurance Companies Act (Canada), so the rate is not an unconditional cash payment.

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TORONTO, Sept. 21, 2026 /PRNewswire/ -- Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) ("Sun Life") today announced that 1,400 of its 6,838,672 Class A Non-cumulative Rate Reset Preferred Shares Series 10R (the "Series 10R Shares") have been elected for conversion on September 30, 2026, on a one-for-one basis, into Class A Non-cumulative Floating Rate Preferred Shares Series 11QR (the "Series 11QR Shares"), and 621,829 of its 1,161,328 Series 11QR Shares have been elected for conversion on September 30, 2026 on a one-for-one basis into Series 10R Shares.

Since there would be less than 1,000,000 Series 11QR Shares outstanding on September 30, 2026, after taking into account all such election notices received by the September 16, 2026 deadline for conversion, (i) Sun Life will automatically convert all remaining Series 11QR Shares into Series 10R Shares, on a one-for-one basis, on September 30, 2026, and (ii) the holders of Series 10R Shares are not entitled to convert their Series 10R Shares into Series 11QR Shares.

Consequently, on September 30, 2026, Sun Life will have 8,000,000 Series 10R Shares issued and outstanding and nil Series 11QR Shares issued and outstanding. The Series 10R Shares are listed on the Toronto Stock Exchange under the symbol SLF.PR.H.

As announced by Sun Life on August 31, 2026, commencing as of September 30, 2026, holders of Series 10R Shares will be entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Sun Life and subject to the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on September 30, 2026 to but excluding September 30, 2031 will be 5.519% per annum or $0.344938 per share per quarter, being equal to the sum of the Government of Canada Yield, as defined in the terms of the Series 10R Shares, on Monday, August 31, 2026 plus 2.17%, as determined in accordance with the terms of the Series 10R Shares.

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.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why are all remaining Series 11QR Shares being converted into Series 10R Shares?

After processing shareholder elections by the September 16, 2026 deadline, fewer than 1,000,000 Series 11QR Shares would have remained outstanding on September 30, 2026. Under the share terms, this triggers an automatic one-for-one conversion of all remaining Series 11QR into Series 10R, and holders of Series 10R Shares are not entitled to convert into Series 11QR in this situation.

What are the key dividend terms for Sun Life’s Series 10R preferred shares from 2026 to 2031?

For the five-year period from September 30, 2026 to but excluding September 30, 2031, Series 10R Shares will pay non-cumulative preferential cash dividends on a quarterly basis, as and when declared and subject to the Insurance Companies Act (Canada), at an annual rate of 5.519%, which is $0.344938 per share per quarter. This rate equals the Government of Canada Yield on August 31, 2026 plus 2.17%, calculated in line with the share terms.

Under what conditions can Sun Life redeem the Series 10R preferred shares?

Subject to regulatory approval, Sun Life may, at its option, redeem all or any part of the outstanding Series 10R Shares on September 30, 2031 and on September 30 every fifth year thereafter. The redemption price is $25.00 in cash per share, plus all declared and unpaid dividends to the redemption date.