Mr. Mathieu Tessier reports

SUN LIFE ANNOUNCES $114 MILLION ANNUITY PURCHASES WITH FRASER PAPERS PENSION PLANS

Sun Life Financial Inc. has successfully completed two annuity buy-in transactions totalling $114-million with the board of trustees of the two New Brunswick shared risk plans for former employees of Fraser Papers Inc.

Advised by Paul Chang Consulting, this deal marks a turning point and eliminates further uncertainty for former Fraser Papers employees, whose pensions were impacted when the company filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) in 2009. The new agreement enables the termination of the shared risk plans and brings the CCAA process to an end for these plan members.

"We're proud to have played a role in helping secure benefits for Fraser Papers' plan members," said Mathieu Tessier, vice-president, client relationships and innovation, defined benefit solutions, Sun Life. "This transaction showcases our commitment to developing solutions that protect pensioners, even in the most challenging circumstances."

This partnership allowed for a tailored approach that maximized benefit levels and optionality for plan members and required careful collaboration between Sun Life, the two boards of trustees and their consultant.

"Paul Chang Consulting's expert advice to our board has been instrumental in obtaining the desired result for our plan members in a timely and efficient manner," said Paul McKinley, board chairman, Fraser Salaried Pension Plan. "We appreciate the excellent cooperation and flexibility that Sun Life demonstrated throughout this process."

Going forward, Sun Life will ensure uninterrupted payment of monthly pensions, providing peace of mind and financial security for plan members.

While this transaction secures benefits for former Fraser Papers employees, it also demonstrates Sun Life's leadership in the pension risk transfer market. Since 2008, more than $70-billion in pension obligations have been transferred to insurers across the industry -- a reflection of steady growth and innovation. Through these 17 years, Sun Life has positioned itself as a market leader being on the receiving end of more than $22-billion of these pension obligations. The company offers innovative and tailored solutions that benefit both plan sponsors and members, furthering its commitment to its purpose of helping clients achieve lifetime financial security and live healthier lives.

About Sun Life Financial Inc.

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 Sept. 30, 2025, Sun Life had total assets under management of $1.62-trillion.