Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced that all of its Class A Non-cumulative Floating Rate Preferred Shares Series 11QR will be converted into Class A Non-cumulative Rate Reset Preferred Shares Series 10R on September 30, 2026, according to a press release.

The conversion was triggered because the number of Series 11QR Shares remaining after voluntary elections fell below the 1,000,000 minimum threshold required to keep the series outstanding. Of the original 1,161,328 Series 11QR Shares, 621,829 had already been elected for conversion into Series 10R Shares. Separately, 1,400 of the 6,838,672 Series 10R Shares had been elected for conversion into Series 11QR Shares, but that conversion will not proceed.

Following the automatic consolidation, Sun Life will have 8,000,000 Series 10R Shares outstanding and no Series 11QR Shares. The Series 10R Shares are listed on the Toronto Stock Exchange under the symbol SLF.PR.H.

Beginning September 30, 2026, holders of Series 10R Shares will be entitled to receive non-cumulative quarterly cash dividends, subject to Board approval and the Insurance Companies Act (Canada). The dividend rate for the five-year period ending September 30, 2031, is set at 5.519% per annum, or C$0.344938 per share per quarter. This rate reflects the Government of Canada Yield as of August 31, 2026, plus 2.17%.

Sun Life may redeem all or part of the Series 10R Shares at C$25.00 per share, plus any declared and unpaid dividends, beginning September 30, 2031, and every five years thereafter, subject to regulatory approval.