A.M. Best Affirms Ratings of Sun Life and Its Affiliates

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A++ (Superior) and the issuer credit ratings (ICR) of "aa+" of Sun
Life Assurance Company of Canada (Sun Life) (Toronto, Canada), Sun
Life Assurance Company of Canada (U.S.) (Wilmington, DE) and Sun Life
Insurance and Annuity Company of New York (New York, NY).
Concurrently, A.M. Best has affirmed the ICR of "aa-" and the debt
ratings of Sun Life Financial Inc. (SLF) (Toronto, Canada). The
outlook for all ratings is stable. (See link below for a detailed
listing of companies and ratings.)

The ratings are based upon SLF's diversified revenue stream from
multiple regions, profitable operations and favorable risk-adjusted
capitalization. SLF is a Canadian-based holding company with a top
three market position in the Canadian insurance market. SLF also
maintains strong operations in the U.S. life insurance and financial
services segments, as well as an expanding wealth management and life
insurance operation in Asia. SLF operates within a well developed and
fully integrated risk management framework.

SLF has maintained favorable debt servicing capabilities,
bolstered by its strong market position and favorable earnings base.
SLF's earnings are sustained by its diverse operations that have been
enhanced by expense synergies and the improved performance of its
asset management business. A.M. Best anticipates that SLF will
maintain adjusted debt to capital at levels below 25%. Furthermore,
its cash flow coverage remains strong at roughly 11 times.

Partially offsetting these strengths is the highly competitive
landscape in its core domestic and international markets. Although
operating earnings are stable and returns on equity remain favorable,
A.M. Best believes Sun Life will continue to face challenges due to
global economic pressures and equity market volatility. The
strengthening of the Canadian dollar relative to foreign currencies
also has added strain to its reported income. In addition, earnings at
MFS may be pressured by the weak markets in the U.S. In addition, the
future earnings contribution from SLF's international business may be
subject to uncertainty, reflecting a number of risks inherent in
emerging markets.

For a complete listing of Sun Life Financial Inc.'s FSRs, ICRs and
debt ratings, please visit www.ambest.com/press/061901sunlife.pdf.

Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals
and health care system providers. For more information, visit
www.ambest.com.

A.M. Best Company
Analysts
Marc Steinberg, 908-439-2200, ext. 5225
marc.steinberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
william.pargeans@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2008