Sun Life CEO seeks M&A targets with $2.2bn fund

Canada-based life insurer Sun Life Financial is in “a strong capital position” to pursue merger and acquisition (M&A) opportunities, CEO Dean Connor told AM Best.

For the medium term, Sun Life has C$2.9 billion ($2.18 billion) of excess capital for M&As, Connor told BestWeek. Sun Life wants to become a leading company in high-growth markets and is looking for opportunities in this space.

Underlying earnings from Sun Life Asia more than tripled in the past five years to reach C$330 million in 2017. The region is expected to post growth of 15 percent to 20 percent per year over the next five years, according to the AM Best report.

Under its medium-term objectives, Sun Life aims to achieve underlying earnings per share (EPS) growth of 8 percent to 10 percent per year for the group. For Asia, underlying EPS is expected to grow 15 percent to 20 percent per year underpinned by organic growth.

In the first quarter of 2018, Sun Life posted a 21 percent jump in reported net income to C$669 million. Its Asia unit contributed 17 percent of the company’s global underlying net income of C$770 million.

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