Sun Life Financial announced today its growth strategy for the US and Canada. After reviewing its businesses, Dean A. Connor, President and CEO of Sun Life explained its future plans to improve shareholder equity.
Sun Life Financial has four key pillars in its growth plans. First it will continue building its already leading position in Canada in regards to insurance, wealth management and employee benefits. In the US, Sun Life is moving forward on becoming a leader in group insurance and voluntary benefits. Part of its US strategy, Sun Life has decided to close its domestic US variable annuity and individual life products to new sales on December 30th, 2011. Sun Life will continue to support growth in MFS Investment management as well as other products globally and will additionally strengthen its competitive position in the Asian region.
The decision to pull away from certain products in the US came from business analysis of unfavourable product economics and Sun Life believes this indication shows that the products no longer enhance shareholder value. Sun Life ensures that this decision to discontinue variable annuity and individual life products in the US will not affect current customers' policies.
“To achieve growth in the U.S., we will focus on increasing sales in our employee benefits business, which is already a top ten player, and will expand our presence in the growing voluntary benefits segment. We are confident that with the focused investment announced earlier this year we can build leading positions in these two sustainable, less capital-intensive businesses. We will also continue to support growth in MFS, our highly successful investment manager that has a large U.S. presence and over US$250 billion of assets under management globally,” said Connor.
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“Today begins a new chapter in the history of Sun Life Financial,” said Connor. “We are charting a new course with a new strategy that leverages what we do best today, and positions us for success as we pursue the many opportunities in our business around the world.”