Sun Life Financial eyes double digit growth in 2008

The Philippine operations of Sun Life Financial Inc. is still optimistic that it can grow by double digits in terms of sales despite the prevailing poor economic conditions burdened by high global oil and commodity prices.

Sun Life Philippines posted a 61-percent growth rate in combined sales last year to P26.1 billion. It product lines are life insurance, pre-need and mutual.

“We would be happy just to repeat the same growth rate in 2007,” Sun Life Financial chief executive officer Donald A. Stewart said.

The level of optimism of Sun Life Financial chief executive is based on their long-term outlook of the economic fundamentals of the Philippine economy.

The economy grew by over seven percent last year, one of the highest ever recorded. But the level of optimism has somewhat reversed for 2008 with forecasts ranging from five percent to 6.2 percent in gross domestic product (GDP).

The record price levels of oil and commodity created a more subdued attitude. Likewise, the peso has weakened against the US dollar, which may result in more expensive imports and lower tax revenue collections.

Stewart said that Sin Life Financial retains a long-term view at the Philippine and Asian economies.

In fact, they are now looking to expand to Korea and at a later date, to Vietnam.

The Canada-based financial institution said that they will continue to expand operations in the Philippines.

“We are also looking at expanding our business process outsourcing (BPO) business. We already have 160 seats, which serves our Asia operations. Additional expansion will be to serve our global operations,” Sun Life Financial for Asia president Stephan Rajotte added.

Rajotte said that its Philippine operations will continue to expand its distribution channels, including direct marketing, home shopping, bancassurance, and its agency force.

It will continue to introduce new products for all its financial services. The variable unit-linked (VUL) life insurance products made significant contributions for its life insurance business. “That will continue as its popularity in the Philippines expands as it offers both protection and investment to policyholders,” they said.

In the first three months of 2008, consolidated net improved by 143 percent, or from P243.4 million in January to March 2007 to P591.4 million. Annualized return on equity stood at 20.2 percent in the same period.

Canada-based Sun Life Financial also operates in the United States, the United Kingdom, Ireland, Hong Kong, Japan, Indonesia, India, China and Bermuda. As of end March 2008, the Sun Life Financial group of companies had total assets under management of C$415 billion.      –  Ted Torres