By James Langton

(March 13 – 17:40 ET) – In its 2000 annual report Sun Life Financial Services outlines its growth strategy.

The firm says it believes that the consolidation of the North American financial services sector will continue, and will likely intensify in Canada after the new financial services legislation is enacted. It is expected to be a buyer in that action.

“The company is fully committed to its vision of becoming a leading international financial services provider and intends to continue to solidify and grow its market presence,” it says.

“Strengthening its growth platform and improving return on shareholders ’equity have been identified as two of the company’s near-term objectives … The company will review its options to free up additional capital and will redeploy excess capital in acquisitions and business growth activities.”

The firm says that its growth in the near term will be focused on the wealth management business, with possible deals coming in that sector. “Management will pursue acquisition opportunities and strategic partnerships, particularly in North America, to complement and further strengthen its core wealth management operations.”

It also hopes to grow the protection business, but seems to be focusing on “those protection business lines that provide attractive returns on capital”. On the operational front, capital efficiency and productivity improvement remain management’s priorities. It says it will continue to aggressively cut costs to improve profitability and to contribute to shareholder returns.

While the focus remains on North America, it notes that it will also continue to strengthen operations in its existing Asian markets, “reflecting its assessment of long-term growth opportunities in those markets”. It is re-evaluating its commitment to the U.K. following its decision to pull out of the distribution business in that market.