Sun Life assures public of strong financial position

Sun Life Financial Plans Inc. (SLFPI) assured yesterday the public that it is well capitalized and has sufficient funds to pay all obligations to its planholders despite the tough challenges facing the multi-billion peso pre-need industry.

“Rumors relating to the state of the industry are not reflective of Sun Life’s pre-need business which continues to be strong and well-capitalized. We are a prudent company by nature and we have always brought this prudence to our pre-need company,” said Henry Herrera, Sun Life Philippines president and chief executive officer.

“At Sun Life, our message to plan holders is crystal clear – we can and will continue to fulfill our obligations to our planholders,” Herrera pointed out.

Herrera said Sun Life’s capitalization is one of the highest in the industry and that the pre-need firm has a conservative investment portfolio comprising of government bonds which are locked-in at interest rates sufficient to cover its obligations.

“After 113 years of experience in the Philippines we have always met our obligations no matter what the crisis and we will continue to do so. Of this we are very proud,” Herrera further said.

SLFPI, the sole distributor of Sunlife of Canada’s pension and education plans in the Philippines, holds the distinction of being the fastest growing pre-need company in the country amid a global economic crunch. It registered a six-percent growth in sales in the third quarter of last year.

During the period July to September 2008, SLFPI opened three new sales offices, expanded its alternative channels, launched two new products and its asset management arm (Sun Life Asset Management Company) retained its top two ranking.

SLFPI’s parent firm reported a net income of CDN$656 million in the first nine months of the year. In the third quarter, however, Sun Life incurred a net loss of CDN$396 million,owing to credit impacts and a downturn in equity markets.

“Extraordinary events in the global financial sector have affected the company’s overall third quarter results, however, Sun Life Financial’s prudent approach to capital and risk management position it well to withstand the current economic environment. It maintains a strong capital position globally, with strong capital reserves well above those required for an insurance company – a key measure indicating that a company can meet its commitments to policyholders,” Sun Life said in a statement.

SLFPI began operations in 1895 and currently provides 1.1 million Filipinos with products and services to help them meet their financial needs.

Sun Life and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

As of September 30, 2008, the Sun Life Financial group of companies had total assets under management of $389 billion.

In another development, investment banker and Asian Spirit founder Noel Oñate gained a seat on the board of the Philippine Federation of Pre-Need Plan Companies by virtue of his purchase of cash-strapped Pacific Plans Inc. from the Yuchengco family.

In a statement, Oñate thanked his peers in the Federation for their confidence in him and vowed to do whatever he can to help the industry get back on its feet in these trying times.