(June 5 – 16:30 ET) – A.M. Best Co. has affirmed the A++ (Superior) financial strength rating of Sun Life Assurance Company of Canada. Best also affirmed the A++ financial strength ratings of its subsidiaries Sun Life Assurance Company of Canada (US), Wilmington, Del. and Sun Life Insurance & Annuity Company of New York, New York.
The rating reflects Sun Life’s leading market positions of its business units in Canada, the United Kingdom and the United States; strong capitalization; diversified operations throughout the world and sustained growth from Massachusetts Financial Services, its U.S. mutual fund operation.
Sun Life’s leading market positions throughout the world are maintained by its wealth management and protection subsidiaries. As a result of a competitive product line and an emphasis on customer service, the group is expected to maintain its current position in these markets. Sun Life’s international expansion has continued with the granting a life insurance license in China.
Best says Sun Life’s core earnings and subordinated debt have enabled it to maintain superior capital strength. This may be further enhanced by the company’s recent demutualization.
Offsetting these strengths are the challenges Sun Life faces to improve the profitability of its U.K. operations and sustain its Canadian market presence despite continued industry consolidation and the maturity of the individual life market.
Sun Life’s restructuring of its individual agency system in Canada has reduced distribution expenses. However, Best says growth will depend on a complementary brokerage system and strategic alliances to enhance agent productivity, sustain a competitive advantage and gain access to higher net worth individuals.
-IE Staff