Sun Life 2015 Annual Report Download - page 47

China
Sun Life Everbright Life Insurance Company Limited (“SLEB”), in which we have 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. SLEB has a 99% ownership stake in the Sun Life Everbright Asset Management Co., Ltd.
On a local currency basis, sales of individual insurance products by SLEB were down 28% in 2015 compared to 2014, despite a 41%
growth in the agency channel, due to SLEB’s focus on improving sales sustainability and profitability in the bancassurance channel.
Vietnam
In Vietnam, we offer individual insurance and pensions through PVI Sun Life Insurance Company Limited, our subsidiary, in which we
increased our ownership stake from 49% to 75% on January 7, 2016. The products are distributed through a career agency sales force
and a corporate sales team.
On a local currency basis, sales of individual insurance products in Vietnam increased 12% from 2014, as a result of strong sales
momentum from our career agency force.
Malaysia
Our operations in Malaysia offer individual and group insurance through Sun Life Malaysia Assurance Berhad and Sun Life Malaysia
Takaful Berhad, our joint ventures with Khazanah Nasional Berhad and CIMB Group Holdings Berhad, in which we have a 49%
ownership stake. The companies have an exclusive bancassurance agreement with CIMB Group to distribute insurance and takaful
products through CIMB’s bank network across Malaysia.
Individual insurance sales in Malaysia were up 29% in 2015 compared to 2014, driven by growth in the bancassurance and
telemarketing channels.
2016 Outlook and Priorities
Asia’s economic growth has underpinned the expansion of the life insurance industry. This, combined with favourable demographics,
low penetration rates for insurance and significant growth of the middle class, provides tremendous opportunities for SLF Asia. On the
other hand, changing regulatory regimes, increased competition from new entrants in the Asian market and economic uncertainty pose
challenges to our businesses.
In order to strengthen our competitive position and grow SLF Asia to be a more significant contributor to overall earnings, we intend to
focus our efforts on the following strategic initiatives:
• Continuing to grow our agency forces, both in quantity and quality;
• Further expanding alternative channels such as bancassurance;
• Continuing to expand our product offerings to address customer needs;
• Growing our health and accident, and wealth management businesses;
• Further strengthening our brand position in the region;
• Investing in digital technology to support our growth; and
• Enhancing risk management and operational efficiency to improve profitability, and to support future growth across the region.
Corporate
Our Corporate segment includes the results of SLF U.K. and Corporate Support.
SLF U.K. has a run-off block of business consisting of approximately 719,000 in-force life and pension policies, with approximately
£11.6 billion of AUM. Since December 2010, SLF U.K. has been closed to new business and focuses on supporting existing
customers. Most administrative functions have been outsourced to external service providers which are managed by an in-house
management team.
Corporate Support operations 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. Our Run-off reinsurance business is a closed block of
reinsurance assumed from other insurers. Coverage includes long-term care, medical coverage, and guaranteed minimum income and
death benefit coverage. The block also includes group long-term disability and personal accident which are 100% retroceded.
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2015 45