Categories Earnings

Sun Life Financial looks to the east to double Asia profit

Canada-based Sun Life Financial Inc announced that it expects Asia profit to double in the next five years due to growing demand for insurance in key markets in the region. CEO Dean Connor even said the company is looking to raise its stake in a JV in China.

With Western players such as Aviva, Prudential Plc and Sun Life competing in Asia, Connor also expects growth in wealth management and asset management. According to the chief, post-tax income of CAD 450 million could grow two-fold over the next five years.

Sun Life now operates in seven markets in the continent – including India, Hong Kong, China, Malaysia and Philippines, where the insurer has made a number of deals with local insurance firms.

‘We have grown rapidly organically but we have also invested around a billion dollars in capital in Asia.’ – CEO Dean Connor

With the Chinese government’s plan to lift the ownership limit to 51% for insurers from outside the country, Sun Life might bump up its 25% holding in its insurance JV in the country.

However, Chinese regulators are yet to figure out when exactly this ownership limit tweak will occur.

Sun Life’s Asia arm contributed to at least 15% of the parent’s underlying net profit in the first quarter. As Sun Life looks to more sunrises in the east, it has to be noted that the company has also invested almost CAD 1 billion in capital in the region. So, brace for more insurance acquisition and JVs in Asia.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top