Sun Life has launched a new company aimed at high net worth clients, Sun Life Bermuda Ltd, a wholly owned insurance subsidiary of Sun Life Assurance Company of Canada.

The new subsidiary is licensed and regulated by the Bermuda Monetary Authority and will operate alongside Sun Life Assurance Company of Canada (Bermuda Branch).

In a statement, the company said that Sun Life Assurance Company of Canada (Bermuda Branch), which has operated on the island for 30 years, will continue to support non-participating life insurance solutions. The new subsidiary expands Sun Life’s capabilities to include participating products.

Participating life insurance for high-net-worth individuals generally provides permanent coverage alongside policyholder dividends derived from the insurer’s participating fund performance.

The launch comes amid growing demand for intergenerational wealth planning solutions as wealth creation accelerates across Asia and the Middle East.

To mark this milestone, Sun Life Bermuda Limited is introducing its first participating whole life solution co-developed with the team at Sun Life Asset Management, leveraging the breadth of Sun Life’s asset management businesses.

The participating fund will draw on Sun Life’s in-house public and private market expertise, offering diversified exposure across private credit, infrastructure, real estate, fixed income and public equities.

Sujoy Ghosh, chief executive officer of Sun Life Private Wealth, said: “As high net worth families look for more integrated approaches to protection, wealth accumulation and legacy planning, they increasingly need solutions that can support multiple objectives within a single structure.

“The establishment of Sun Life Bermuda Limited expands our ability to meet these needs through a broader range of insurance solutions designed for intergenerational wealth planning.”

Sun Life described Bermuda as “an important pillar of Sun Life Private Wealth”.

“Bermuda is one of the world’s leading centres for international life insurance, supported by its mature regulatory framework, deep pool of specialist expertise, and ability to support highly customised policy structures,” the company added.

“By combining Sun Life Asset Management’s investment capabilities with Sun Life Private Wealth’s high net worth insurance expertise and distribution partnerships, we are creating innovative solutions that help advisers support high net worth families’ long-term wealth goals,” said Karim Gilani, global head, strategic solutions and partnerships, Sun Life Asset Management.

Sun Life Private Wealth has operational presence in other financial hubs including Dubai, Hong Kong and Singapore.