By James Langton

(January 16 – 14:15 ET) – Don Stewart, chairman & CEO of Sun Life Financial Services of Canada Inc. discussed his firm’s strategy at the RBC DS 2001 Financial Services Conference this morning.

In a brief presentation and Q&A session, Stewart outlined Sun Life’s operations worldwide, including Canada, the U.S., U.K. and elsewhere. Sun Life’s wealth management stable includes Boston-based MFS Advisors, along with Spectrum United and McLean Budden in Canada.

Although he was short on details, Stewart hinted that acquisition is definitely a key part of Sun Life’s growth strategy. He noted that there are “significant challenges” to finding the organic growth necessary to fulfill Sun Life’s ambition to be a top player in its markets.

While organic growth will be counted on in some of its younger markets, and in its MFS subsidiary too, Stewart said the firm will entertain acquisitions in the U.S. insurance business, and in both the insurance and wealth management businesses in Canada. However he referred to the U.S. as Sun Life’s “most critical market” at this point.

Despite prodding from DS analyst and one of the conference’s hosts, Tom Jarmai, Stewart wouldn’t be specific about possible divestitures from Sun Life. However, he made a point of declaring that divestitures are definitely a possibility. The firm’s struggling U.K. subsidiary is likely the prime candidate for sale.

As for the issue of embedded value, Stewart told analysts not to hold their breath. He said that Sun Life will report it at some point, however it will likely be later rather than sooner simply because the calculation is so complex. And in the case of Sun Life it is particularly complex due to its heavy reliance on MFS.