Sun Life Financial Inc.SLF

Morningstar Rating

Stock Research and Analysis

by Chris Blumas

Sun Life is an international life insurance and wealth management firm that caters to retail clients through individual and group benefits platforms. In 2008, Sun Life's combined Canadian operations accounted for 50% of revenues and 80% of profits. Read more

Bulls Say

Sun Life's strong competitive position in the Canadian market gives the firm a stable earnings base.

Considerable distress across the U.S. financial services landscape may create attractive acquisition opportunities for Sun Life.

Sun Life's growing presence in many high-growth Asian markets provides an outlet for long-term earnings growth and reduces the firm's dependence on the North American markets.

More rigorous expense management could lead to higher corporate efficiency and better returns on equity. Read more

Bears Say

Sun Life's high dividend payout and appetite for acquisitions increase the possibility of a dilutive capital raise.

Sun Life's securities portfolio could experience further impairments and undermine the firm's capital base.

Intense price competition in the U.S. group benefit market could make it difficult for Sun Life to gain further market share and attain the scale necessary to realize acceptable profits.

Sun Life's joint-venture arrangement in China may prove to be cumbersome and limit the profit potential from the region. Read more

Strategy

Building from a strong Canadian foundation, Sun Life has plans to grow outside of its core market. With considerable distress across the U.S. financial services landscape and expansion opportunities Read more

Management

Donald Stewart is the current CEO of Sun Life and has lead the firm since its initial public offering in 2000. Under his leadership, returns on equity and growth in per-share book value have lagged the other Canadian life insurance companies. In 2008, Read more

Profile

Sun Life is the third-largest life insurance company in Canada in terms of total assets. The firm provides a broad range of insurance and wealth management products to individuals Read more

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