Sun Life Investment Management adds insurance asset management
capabilities to U.S. institutional investment business

TORONTO, ON AND REDMOND, WA, July 31, 2015 /PRNewswire/ – Sun Life Financial
Inc. (“Sun Life Financial”) (TSX: SLF) (NYSE: SLF) and Prime Advisors,
Inc. (“Prime”) announced today that Sun Life Financial has completed
the purchase of Prime, headquartered in Redmond, Washington. The
acquisition was announced on June 30, 2015.

“The addition of Prime to the Sun Life Financial family strengthens Sun
Life Investment Management’s offering in the U.S. market,” said Steve
Peacher, President, Sun Life Investment Management, and Chief
Investment Officer, Sun Life Financial. “With a strong focus on
insurance clients, and a specialty in liability-based investing, we are
proud to add Prime to our platform and are encouraged by the positive
response from the market to date.”

“The completion of this transaction signifies our commitment to building
our business to meet the complex and evolving needs of our clients,”
said Don McDonald, President and Chief Executive Officer of Prime
Advisors. “Joining Sun Life Investment Management positions us well for
accelerated growth in creating integrated investment strategies for our
clients.”

Founded in 1988, Prime had approximately US$13 billion of assets under
management as of June 30, 2015. The firm is an established manager of
fixed income portfolios with customized investment benchmarks that are
designed to meet the specialized needs of U.S.-based insurance
companies, predominantly in the property and casualty, health and life
industries.

Prime will continue to operate as a standalone unit, however, it will
also be a member company on the Sun Life Investment Management
platform, which provides investment solutions to institutional
investors. Prime will maintain its brand and maintain its offices in
Redmond, Washington, and Windsor, Connecticut.

Forward-looking information

The expected combined third-party assets under management (“AUM”) of Sun
Life Investment Management, upon completion of the acquisition of
Bentall Kennedy, is forward-looking information. It is based on the
assumption that the acquisition of Bentall Kennedy, which was announced
on June 16, 2015, will be completed. This forward looking information
represents our current expectations, estimates and projections
regarding future events and are not historical facts. This
forward-looking information is not a guarantee of future performance
and involves risks and uncertainties and are based on key factors and
assumptions are difficult to predict. Except as may be required by
Canadian securities laws, we do not undertake any obligation to update
or revise any forward-looking information contained in this news
release. All such forward-looking information is provided pursuant to
the “safe harbour provisions” of applicable Canadian securities laws
and the United States Private Securities Litigation Reform Act of 1995.

Forward-looking information is presented to assist investors and others
in understanding our expected financial position and results of
operations as at the date of this news release, as well as our
objectives for the transaction, strategic priorities and business
outlook following the transaction, and in obtaining a better
understanding of our anticipated operating environment following the
transaction. Readers are cautioned that such forward-looking
information may not be appropriate for other purposes and undue
reliance should not be placed on such forward-looking information.
Additional information about important factors that could cause actual
results to differ from expectations can be found in the annual
information form of Sun Life Financial Inc. for the year ended December
31, 2014 under the heading “Risk Factors” and other regulatory filings
filed or furnished to Canadian and U.S. securities regulators available
at www.sedar.com and www.sec.gov.

About Prime Advisors, Inc. With offices in Redmond, Washington, and
Windsor, Connecticut, Prime Advisors, Inc. is a federally registered investment advisory firm focused primarily on
managing investment grade bond portfolios for the insurance industry.
Since 1988, Prime has worked to create integrated investment
strategies, linking its clients’ financial goals with current capital
market opportunities. Prime understands that no single approach or one
set of guidelines applies to every company. Prime’s Disciplined
Approach^(SM) to the complexities of managing insurance company investment portfolios
gives a unique ability to develop customized solutions that integrate
investment strategy with the realities of an insurance company’s
operations.

About Sun Life Investment Management
Sun Life Investment Management is an institutional investment management
arm of Sun Life Financial that includes the investment operations of
Sun Life Assurance Company of Canada, Sun Life Investment Management Inc. in Canada, and Ryan Labs Asset Management Inc. and Prime Advisors, Inc. in the United States. Upon completion of the
acquisition of Bentall Kennedy, which was announced on June 16, 2015,
these Sun Life Investment Management operations would have combined
third-party assets under management of approximately $50 billion, as of
June 30, 2015.

About Sun Life Financial
Celebrating 150 years in 2015, Sun Life Financial is a leading
international financial services organization providing a diverse range
of protection and wealth products and services to individuals and
corporate customers. Sun Life Financial and its partners have
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 March 31, 2015, the Sun Life Financial group of
companies had total assets under management of $813 billion. 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.

Note to editors: All figures in Canadian dollars unless stated
otherwise.

SOURCE Sun Life Financial Inc. – Financial News