Sun Life 2010 Annual Report Download - page 54

Results by Business Unit
Hong Kong
Our Hong Kong operations have been building a strong presence in the region by offering a full range of products to address protection
and savings needs. Individual life and health insurance, mandatory provident funds (the government-legislated pension plan) and
pension administration are offered to individuals and businesses through a multi-channel distribution system that includes a career
agency force, bancassurance and independent financial advisors.
We continue to expand our alternative distribution channels in Hong Kong, which contributed 35% of total individual life sales in 2010.
In particular, sales from bancassurance and telemarketing channels were up 10% and 94%, respectively, in 2010 compared to 2009.
Total individual life sales were up 15% in 2010 compared to 2009, on a local currency basis.
The mandatory provident fund and pension administration gross sales increased significantly by 167% over 2009 and total assets
under administration grew by 53% over 2009, resulting from further expansion of the pension administration business.
Philippines
Our Philippines operations, established in 1895, distribute a diverse range of protection and savings products largely through their
proprietary career agency sales force. We offer individual and group life and health insurance products, as well as mutual funds, to
individuals and institutions.
With 31 branches, 41 sales offices and five financial stores nationwide, our operations in the Philippines are considered one of the
strongest and most stable insurance companies in the market.
Individual insurance sales were up by 35% compared to 2009, on a local currency basis, as demand for investment-linked products
increased following the return of investor confidence. Mutual fund gross sales increased by 158% over 2009 and assets under
management grew by 29% over 2009.
Indonesia
In Indonesia, we offer individual life and health insurance as well as creditor life insurance through our wholly-owned subsidiary,
PT Sun Life Financial Indonesia, and our joint venture with PT Bank CIMB Niaga. Both operations follow a multi-channel distribution
strategy. CIMB Sun Life serves CIMB Niaga’s customers on an exclusive basis for most insurance products.
Individual life Insurance sales in Indonesia were up 41% in 2010 compared to 2009, on a local currency basis due to an increase of
agency sales force and continued growth of CIMB Sun Life.
India
Birla Sun Life Insurance Company Limited (Birla Sun Life Insurance), our 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, the Company’s 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 the direct distribution capabilities serve corporate clients.
Birla Sun Life Insurance’s individual insurance sales were impacted by major industry-wide regulatory changes to unit-linked products
and down 31% in 2010 compared to 2009, on a local currency basis. The gross inflows of Birla Sun Life Asset Management Company
Limited were up by 16% over last year.
China
Sun Life Everbright operates a multi-distribution model that combines a direct career agency, financial consultants, telemarketing and
several bancassurance alliances to sell individual life and health insurance and savings products.
In July 2010, the China Insurance Regulatory Commission approved the restructuring of Sun Life Everbright as a domestic insurance
company. We have a 24.99% interest in the restructured company. The repositioning allows Sun Life Everbright to capture a larger
share of China’s growing financial services sector.
In 2010, sales of individual insurance products by Sun Life Everbright were up 135% compared to 2009 on a local currency basis,
driven by strong sales of participating products in the bancassurance channel. In the fourth quarter of 2010, Sun Life Everbright
received approval to open three new branches in China, bringing the total number of cities in which Sun Life Everbright operates to 36.
2011 Outlook and Priorities
The life insurance markets in which we operate in Asia range from the developing and increasingly competitive markets, such as India
and China, to the more mature markets of the Philippines and Hong Kong. Overall, the life industry at both the regional and country
level continued to evolve rapidly, with a number of players exiting selected markets, but many more increasing their investment and
commitment to the region, including Sun Life. While agency continued to be the primary distribution channel in Asia, the
bancassurance channel has been increasingly gaining market share with strong growth potential.
After the global financial crisis, regulatory oversight on consumer protection has increased primarily related to investment-linked
products and related sales practices, as well as capital adequacy. While the market significantly recovered during 2010, we continue to
expect a challenging operating environment in 2011, but with opportunities for prepared and quality players to significantly outperform
their peers.
50 Sun Life Financial Inc. Annual Report 2010 Management’s Discussion and Analysis