Canada-based Sun Life Financial Inc announced that it expects Asia profit to double in the next five years due to growing demand for insurance in key markets in the region. CEO Dean Connor even said the company is looking to raise its stake in a JV in China.
With Western players such as Aviva, Prudential Plc and Sun Life competing in Asia, Connor also expects growth in wealth management and asset management. According to the chief, post-tax income of CAD 450 million could grow two-fold over the next five years.
Sun Life now operates in seven markets in the continent – including India, Hong Kong, China, Malaysia and Philippines, where the insurer has made a number of deals with local insurance firms.
‘We have grown rapidly organically but we have also invested around a billion dollars in capital in Asia.’ – CEO Dean Connor
With the Chinese government’s plan to lift the ownership limit to 51% for insurers from outside the country, Sun Life might bump up its 25% holding in its insurance JV in the country.
However, Chinese regulators are yet to figure out when exactly this ownership limit tweak will occur.
Sun Life’s Asia arm contributed to at least 15% of the parent’s underlying net profit in the first quarter. As Sun Life looks to more sunrises in the east, it has to be noted that the company has also invested almost CAD 1 billion in capital in the region. So, brace for more insurance acquisition and JVs in Asia.