Sun Life Assurance Company of Canada announced its plans to become a publicly traded stock company.

The assurance company announced yesterday that the demutualisation package had been approved by its board of directors.

The move could see each eligible Bermudian policyholder reap an estimated $5,600 - based on the average spread over the 1 million policyholders in the company.

Sun Life have said its 1 million policyholders worldwide will receive between an estimated $3.73 billion and $5.6 billion.

The company's stock will be distributed among eligible policyholders. There are 7,000 in Bermuda, owned by 4,000 people.

The stock will be distributed to participating policyholders, those with life insurance policies which pay back cash values and dividends.

The eligible policyholders have now been asked to take part in a vote in December on whether to demutualise the company.

Kenneth Spurling, the financial centre manager and principal representative of Sun Life in Bermuda said the move would benefit the company and the policyholders.

"It is a win-win situation. There will be the same policies, the same benefits and the face value remains the same.

"And because they were the mutual owners, they now become the shareholders.'' Sun Life is currently a mutual in which ownership and profits are distributed among members in relation to the amount of business each member does with the company.

In Bermuda, Sun Life is classified as a non-resident insurance undertaking -- a non-Bermudian company licensed to sell insurance locally.

Only those holding participating policies that were in force on January 27, 1998 will be eligible for the share issue.

The company has now mailed information packages to its policyholders who are mainly based in Canada, the United States, the United Kingdom, the Philippines and Hong Kong.

The new company is expected to be called Sun Life Financial Services of Canada.

Sun Life will put the move to the vote of eligible policyholders on December 15 this year. Before this there will be a public hearing on November 22 before the Michigan Insurance Commissioner, Sun Life of Canada's primary US regulator.

"Our demutualisation plan would distribute the entire value of the company to eligible policyholders while their policy interests would continue to be protected,'' said Donald Stewart, chairman and chief executive officer of Sun Life. "At the same time it would provide the company with more flexible options to expand and grow by giving access to equity markets.'' If the votes go in their favour, Sun Life hopes to demutualise by spring next year.