06/21/2013 11:17 EDT | Updated 08/21/2013 05:12 EDT

Sun Life says sale of its U.S. annuities business delayed by regulatory hurdles

TORONTO - Sun Life Financial (TSX:SLF) says it expects a delay in closing the US$1.35 billion sale of its U.S. annuities business and some of its U.S. life insurance businesses to Delaware Life Holdings LLC.

Sun Life had expected to close the deal before the end of the second quarter, which ends June 30, but said Friday that the New York Department of Financial Services has yet to give its approve.

The transaction has been approved by other regulators, including the Delaware Department of Insurance and the Financial Industry Regulatory Authority.

Sun Life says it is continuing to work with the New York state authorities and said both companies have made progress in preparing for the transition of employees and operations.