TORONTO, June 20 /CNW/ - Sun Life Financial Inc. (TSX/NYSE: SLF)
announced today that it exceeded the US$1 billion mark in U.S. variable
annuity gross sales for the first five months of 2007, representing an
increase of 66% over the comparable period in 2006. In the months of April and
May, the company achieved aggregate variable annuity gross sales of
"Sun Life's innovative Income ON Demand(SM) annuity product, combined
with the continuing execution of our distribution strategy, are fueling
impressive sales growth in the United States and solidly positioning us within
key retirement and demographic markets," said Donald A. Stewart, Chief
Executive Officer, Sun Life Financial.
Sun Life also announced today that the Company's Chinese joint venture
life insurance company, Sun Life Everbright Life Insurance Company, received
China Insurance Regulatory Commission (CIRC) preparatory approval for
Shanghai, mainland China's financial centre and a very strong operating base
for our Chinese joint venture partner, China Everbright Group. Sales in
Shanghai are expected to begin in the fourth quarter subject to CIRC operating
approval. This approval brings the Company's operations in China to a total of
14 cities. China is key to Sun Life's strategy of expanding its global
"We have consistently delivered on our ROE and earnings growth goals,"
said Richard P. McKenney, Executive Vice-President and Chief Financial
Officer. "Our announcements today reinforce that our diversified earnings
platform will drive our growth going forward."
These announcements were made as part of Sun Life Financial's 2007
Investor Day. The presentations highlighted how Sun Life has continued to
deliver on its growth and distribution expansion strategies in each of its
- In Canada, Sun Life recently announced the integration of its brand
strategy to leverage the Sun Life Financial brand. Individual
insurance sales have increased as a result of a successful re-entry
into the wholesale market and continued productivity improvements in
the Sun Life Financial Advisors channel.
- In the U.S. market, Individual Life sales have grown on the strength
of active relationships with nine of the top 10 U.S. independent
distributors, including National Financial Partners and M Financial
Group. In addition, the Company's U.S. Group Insurance business
solidified its top 10 market position with the recent acquisition of
a significant employee benefits business.
- At MFS, assets under management exceeded US$200 billion in April
2007, and pre-tax operating profit margin ratio increased to 34% in
the first quarter of 2007. MFS continued to achieve superior
investment performance, with 74%, 82% and 75% of its funds ranked in
the top half of their Lipper Category Average over 1, 3 and 5 years
respectively as of March 31, 2007.
- Sun Life's Asian operations continue to demonstrate significant
growth. Birla Sun Life's direct sales force in India has grown to
over 45,000 advisors in 116 branches serving 95 cities as of
March 31, 2007.
The Company also announced that it has determined the next generation of
its financing structure to support its U.S. universal life insurance products.
The Company expects reducing levels of new business strain commencing in the
second quarter of 2007, with the full benefits of the solution anticipated to
be realized by year-end.
The 2007 Investor Day webcast and related information is available at
www.sunlife.com/InvestorDay. The webcast and presentation will be archived on
our website following the event.
Use of Non-GAAP Financial Measures
Management evaluates the Company's performance on the basis of financial
measures prepared in accordance with Canadian generally accepted accounting
principles (GAAP), including earnings, earnings per share (EPS) and return on
equity (ROE). Management also measures the Company's performance based on
certain non-GAAP measures, including operating earnings, operating EPS,
operating ROE, ROE for business groups, pre-tax operating profit margin
ratios, financial performance measures prepared on a constant currency basis,
Embedded Value and Value of New Business. Information concerning these
non-GAAP financial measures and reconciliations to GAAP measures are included
in the Company's annual and interim Management's Discussion and Analysis and
its Supplementary Financial Information packages that are available in the
Investor Relations - Financial Publications section of Sun Life Financial's
Certain statements contained in this document, including those relating
to the Company's strategies and other statements that are predictive in
nature, that depend upon or refer to future events or conditions, or that
include words such as "expects", "anticipates", "intends", "plans",
"believes", "estimates" or similar expressions, are forward-looking statements
within the meaning of securities laws. Forward-looking statements include the
information concerning possible or assumed future results of operations of the
Company. These statements represent the Company's expectations, estimates and
projections regarding future events and are not historical facts.
Forward-looking statements are not guarantees of future performance and
involve certain risks and uncertainties that are difficult to predict. Future
results and stockholder value may differ materially from those expressed in
these forward-looking statements due to, among other factors, the matters set
out under "Risk Factors" in the Company's AIF and the factors detailed in its
other filings with Canadian and U.S. securities regulators, including its
annual MD&A, and annual and interim financial statements which are available
for review at www.sedar.com and www.sec.gov.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, the performance of equity
markets; interest rate fluctuations; changes in legislation and regulations
including tax laws; regulatory investigations and proceedings and private
legal proceedings and class actions relating to practices in the mutual fund,
insurance, annuity and financial product distribution industries; risks
relating to product design and pricing; investment losses and defaults; the
occurrence of natural or man-made disasters, pandemic diseases and acts of
terrorism; risks relating to operations in Asia, including risks relating to
joint ventures; failure of computer systems and internet enabled technology;
breaches of computer security and privacy; the availability, cost and
effectiveness of reinsurance; the inability to maintain strong distribution
channels and risks relating to market conduct by intermediaries and agents;
dependence on third party relationships including outsourcing arrangements;
currency exchange rate fluctuations; the impact of competition; downgrades in
financial strength or credit ratings; the ability to successfully complete and
integrate acquisitions; the ability to attract and retain employees; and the
performance of the Company's investments and investment portfolios managed for
clients such as segregated and mutual funds. The Company does not undertake
any obligation to update or revise these forward-looking statements to reflect
events or circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth accumulation
products and services to individuals and corporate customers. Chartered in
1865, Sun Life Financial and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Ireland,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
March 31, 2007, the Sun Life Financial group of companies had total assets
under management of $446 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol SLF.
Note to Editors: All figures shown in Canadian dollars unless otherwise
For further information:
For further information: Media Relations Contact: Susan Jantzi, Senior
Manager, External Communications & Corporate Affairs, Tel: (519) 888-3160,
email@example.com; Investor Relations Contact: Kevin Strain,
Vice-President, Investor Relations, Tel: (416) 204-8163,