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SLF Asia
Business Profile
SLF Asia operates through subsidiaries in the Philippines, Hong Kong and Indonesia and through joint ventures with local partners in
Indonesia, India and China. These five markets account for approximately 70% of the total Asian population. Our Regional Office in
Hong Kong facilitates the sharing of best practices and resources throughout the SLF Asia operations.
Individual life and health insurance as well as group life insurance products are offered in all five markets. Pension and retirement
products are offered in Hong Kong and India, and mutual funds are sold in the Philippines and India. These protection and wealth
products are distributed to middle- and upper-income individuals, groups and affinity clients through multi-distribution channels, with
agency remaining the largest distribution channel.
Strategy
Our strategy is to gain scale in each of the markets where we operate and develop into a significant long-term revenue and earnings
growth operation. As such, we are increasing the speed to market for new and innovative products, developing alternative distribution
channels such as bancassurance and telemarketing as well as leveraging the Company’s existing asset management capability in Asia
and globally. The local initiatives will complement the leveraging of Sun Life Financial’s worldwide resources to bring industry-leading
products, services and best practices to Asia.
2010 Business Highlights
• On July 20, 2010, Sun Life Everbright was restructured as a domestic insurance company. Under the restructuring of the joint
venture with the China Everbright Group, additional strategic investors were introduced, which reduced our ownership in Sun Life
Everbright from 50% to 24.99%. The repositioning provides an opportunity for Sun Life Everbright to capture a larger share of
China’s growing financial services sector.
• In August 2010, CIMB Sun Life, Sun Life’s joint venture in Indonesia with P.T. Bank CIMB Niaga, was named “Best New Company
of the Year” by the International Business Awards. This premier international business award honours companies and their
employees for outstanding performance.
• Sun Life Hong Kong increased its mandatory provident fund and pension administration assets under administration by 53% over
2009.
• In the Philippines, we are ranked number one in new business with a 16% market share, based on adjusted first year premium.
• In India, Birla Sun Life Asset Management Company Limited has been recognized as “The Asset Management Company of the
Year” in India by Hong Kong’s The Asset Magazine. The award acknowledges the company’s comprehensive and innovative
offerings, its significant efforts to reach new investors and above-benchmark performance.
Financial and Business Results
Summary Statement of Operations
($ millions) 2010 2009 2008
Premiums 861 848 726
Net investment income 710 846 (318)
Fee income 138 119 90
Total revenue 1,709 1,813 498
Client disbursements and change in actuarial liabilities 1,189 1,314 64
Commissions and other expenses 394 402 379
Income taxes 34 21 22
Common shareholders’ net income 92 76 33
SLF Asia’s full year 2010 earnings were $92 million compared to $76 million in 2009. The increase in earnings was mainly due to
improved results in India as a decline in sales resulted in lower levels of new business strain, and a net gain of $19 million from the
restructuring of Sun Life Everbright in China, partially offset by lower earnings in Hong Kong from higher levels of new business strain
in 2010 and favourable mortality and credit experience in 2009.
SLF Asia’s total revenue decreased by 6% to $1,709 million in
2010 compared to $1,813 million in 2009, reflecting the
unfavourable impact from fair value changes on HFT assets and
non-hedging derivatives in 2010.
Individual life insurance sales for 2010, measured in Canadian
dollars, were down by 18% over 2009, mainly due to lower sales
in India, which have been impacted by major industry-wide
regulatory changes to unit-linked products. Excluding India,
individual life sales were up 43% driven by sales growth in all
other markets. In 2010, we continued to build alternate
distribution channels, leverage a more balanced product
portfolio, and increase efficiency and productivity while
maintaining customer focus. (1) Includes 100% sales for joint ventures.
Individual Life Sales(1)
($ millions)
2008 20102009
801
680
833
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2010 49