Profile: Sun Life Financial Inc (SLF.TO)
10 Mar 2014
Sun Life Financial Inc. (SLF Inc.), incorporated on August 5, 1999, is an international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key markets worldwide, including Canada, the United States (U.S.), the United Kingdom (U.K.), Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam and Bermuda. In August 2013, Delaware Life Holdings purchased of the domestic U.S. annuity business and certain life insurance businesses of Sun Life Financial Inc. In February 2014, Sun Life Financial Inc launched its new asset management business, Sun Life Investment Management Inc.
The Company operates in five business segments: SLF Canada, SLF U.S., MFS, SLF Asia and Corporate. The Corporate segment includes SLF U.K. and Corporate Support operations. These reportable segments operate in the financial services industry and reflect its management structure and internal financial reporting. Corporate includes the results of its U.K. business unit and its Corporate Support operations, which include its run-off reinsurance operations as well as investment income, expenses, capital and other items not allocated to its other business groups.
SLF Canada is provides client base consisting of millions of people across Canada. Its distribution breadth, service, technology infrastructure and brand recognition provide an platform for growth. SLF Canada’s three business units :Individual Insurance & Investments, Group Benefits and Group Retirement Services , which offers a full range of protection and wealth accumulation products and services to individuals and corporate clients. SLF U.S. expanded the EBG distribution organization by adding experienced sales representatives, creating a Small Business Center and building a dedicated voluntary benefits distribution team. SLF U.S. had approximately 200 sales professionals actively selling group and voluntary benefits products at year end. On December 17, 2012, it entered into a definitive stock purchase agreement to sell its U.S. Annuity Business, including all of the issued and shares of Sun Life (U.S.). Its U.S. Annuity Business includes its domestic U.S. variable annuity, fixed annuity and fixed indexed annuity products, corporate and bank-owned life insurance products and variable life insurance products.
Individual Insurance & Investments’ strategy is to help Canadians achieve lifetime financial security by delivering a suite of products, service and holistic advice with a focus on ease of doing business and risk management practices. Individual Insurance & Investments principal insurance products include permanent life, participating life, term life, universal life, critical illness, long-term care and personal health insurance. It offers savings and retirement products, which include mutual funds, segregated funds, accumulation annuities, guaranteed investment certificates and payout annuities. Its products are marketed through a distinctive, multi-channel distribution model consisting of its exclusive Sun Life Financial Career Sales Force and third-party distribution channels. Certain products, including accidental death insurance and personal health insurance, are marketed directly to retail clients in partnership with its advice channels.
The Company’s group benefits business unit is a provider of group life and health insurance products in Canada. It provides life, dental, drug, extended health care, disability and critical illness benefits programs to employers of all sizes. In addition, voluntary benefits solutions are offered directly to individual plan members, including post-employment life and health plans to members exiting their plan. It is an innovation, competing on the strength of an industry technology platform, a Total Benefits offering, and integrated health, wellness and disability management capabilities. Its products are marketed and distributed across Canada by experienced sales representatives in collaboration with independent advisors, benefits consultants and the Sun Life Financial Career Sales Force.
Group retirement services(GRS) is the provider of defined contribution plans in Canada, serving over one and a half million plan participants at the end of 2012. It also offers other group retirement services and products, including investment-only segregated funds and fixed rate annuities, stock plans, group life annuities, pensioner payroll services and solutions for de-risking defined benefit pension plans. GRS’s solutions meet the complex plan and service requirements of medium to organizations, while providing cost-effective solutions to the small employer market. It continues to launch solutions to meet the emerging needs of the pension market to further enhance its leadership position, including expanding its range of de-risking solutions. It distributes its products and services through a multi-channel distribution network of pension consultants, advisors and with teams dedicated to the rollover sector and defined benefit solutions market.
SLF U.S. consists of two business units : employee benefits group (EBG) and Life and Investment Products. EBG provides protection solutions to employers and employees including group life, disability, medical stop-loss and dental insurance products, as well as a suite of voluntary benefits products. The Life and Investment Products business includes its international business, which provides international high net worth clients with insurance and investment products, and those closed individual life insurance products that are part of its Continuing Operations. On December 17, 2012, it entered into a definitive stock purchase agreement to sell its U.S. Annuity Business, including all of the issued and shares of Sun Life (U.S.).
The SLF U.S. EBG business unit leverages its underwriting and distribution capabilities to provide group life, long-term and short-term disability, medical stop-loss and dental insurance, as well as a suite of voluntary benefits products, to over 10 million group plan members. EBG provides products and services to meet the protection needs of principally small- and medium-sized employers and their employees. Its group and voluntary benefits insurance products are sold through approximately 30,000 independent brokers and benefit consultants. It supports these brokers and consultants through 34 regional group offices across the United States and approximately 200 employee sales representatives. Retaining business, building distribution scale and continuing to drive operational efficiency are key drivers of EBG’s growth strategy.
The Life and Investment Products business includes its international business, which provides international high net worth clients with insurance and investment products, and those closed domestic individual life insurance products that are part of its Continuing Operations. The closed block of individual life insurance products primarily includes whole life, universal life and term insurance.
MFS Investment Management
MFS, a global asset management firm, offers a comprehensive selection of financial products and services. Drawing on an investment heritage that emphasizes collaboration and integrity, MFS actively manages assets for retail and institutional investors around the world through mutual funds, separately managed accounts and retirement plans.
MFS sells its retail products primarily through financial intermediaries. Retail products, such as mutual funds and private portfolios, are distributed through financial advisors at wirehouses, regional brokerage firms, independent broker dealers, banks and registered investment advisors. MFS also manages assets for institutional clients and discretionary managers, including corporate and public pension plans, defined contribution plans, multi-employer plans, investment authorities and endowments and foundations. Institutional products are sold by an internal sales force, which is aided by a network of independent consultants.
SLF Asia is present in six markets - namely the Philippines, Hong Kong, Indonesia, India, China and Vietnam, through subsidiaries, joint ventures and strategic investments. These six markets account for approximately 70% of Asia’s total population. Its regional Office in Hong Kong facilitates growth opportunities in Asia, and supports the sharing of practices and resources throughout SLF Asia’s operations. It offers individual life and health insurance as well as group life insurance and savings products in the markets in which it operates. It offers pension and retirement products in Hong Kong and India, and mutual funds in the Philippines and India. It distributes these protection and wealth products to middle- and upper-income individuals, groups and affinity clients through multi-distribution channels, with agency remaining the distribution channel.
Its operations in the Philippines, distribute a diverse range of protection and savings products largely through its career agency sales force. It offers individual and group life and health insurance products to individuals and businesses through its wholly-owned subsidiary, Sun Life of Canada (Philippines), Inc., and its joint venture with the Yuchengco Group, Sun Life Grepa Financial, Inc., in which it has a 49% ownership stake. In addition, it offers mutual funds through its wholly-owned subsidiary, Sun Life Asset Management Company.
Its Hong Kong operations offers a full range of products to address protection and savings needs. It offers individual life and health insurance, mandatory provident funds (the government-legislated pension system) and pension administration to individuals and businesses through a multi-channel distribution system that includes a career agency force, telemarketing and independent financial advisors.
In Indonesia, it offers individual life and health insurance, as well as creditor life insurance through its wholly-owned subsidiary, PT Sun Life Financial Indonesia, and PT CIMB Sun Life, its joint venture with PT Bank CIMB Niaga, in which it has a 49% ownership stake. Both operations follow a multi-channel distribution strategy. PT CIMB Sun Life serves PT Bank CIMB Niaga’s customers on an exclusive basis for insurance products.
Birla Sun Life Insurance Company Limited, its insurance joint venture with the Aditya Birla Group in India, provides a full range of individual and group protection, savings and retirement products through a multi-channel distribution network, including a career agency sales force, bancassurance distribution, brokers and worksite marketing. In addition, Birla Sun Life Asset Management Company Limited, its asset management joint venture in India, offers a full range of mutual fund products to both individual and institutional investors. Independent financial advisors and banks distribute Birla Sun Life’s mutual funds to the retail sector, while direct distribution serves corporate clients.
Sun Life Everbright Life Insurance Company Limited, in which it had a 24.99% ownership stake, operates a multi-distribution model that combines a direct career agency, financial consultants, telemarketing and bancassurance alliances to sell individual life and health insurance and savings products. Its branches operate in provinces that represent approximately 60% of China’s population.
The Company’s corporate segment includes the results of SLF U.K. and Corporate Support operations that consist of the Company’s run-off reinsurance business as well as investment income, expenses, capital and other items not allocated to Sun Life Financial’s other business segments. Its run-off reinsurance business is a closed block of reinsurance assumed from other insurers. Coverage includes individual disability income, long-term care, group long-term disability and personal accident and medical coverage, as well as guaranteed minimum income and death benefit coverage. Discontinued Operations in Corporate relate to Corporate Support only.
Sun Life Financial Inc
150 King Street West
TORONTO ON M5H 1J9