Posts Tagged ‘Financial’
Genworth Financial Earns DALBAR Life Insurance Service Award
December 19, 2011
BOSTON, MA, Dec 19, 2011 (MARKETWIRE via COMTEX) –
DALBAR announced today the 2011 winners of its annual Life
Insurance Service Award. Genworth Financial was the only firm in the
life insurance industry to emerge as a leader in customer service in
2011.
For over two decades, DALBAR has conducted rigorous testing of
service delivery and each year identifies those life insurance firms
that were found to be above their peers in service to clients after a
full year of rigorous testing.
Important service attributes that dramatically and clearly
differentiate Genworth Financial from the industry at large include:
-- When Genworth call center representatives initially engage callers,
they warmly and politely greet them and establish an immediate
appreciation for their business more than 95% of the time. This
compares to an industry average of 58%.
-- Genworth representatives understand the critical nature of listening,
understanding and responding with options that are available based on
each client's needs and sense of urgency. Genworth representatives
demonstrate this ability more than 95% of the time as compared to the
industry average of 67%.
“In today’s fiercely competitive financial services industry, service
excellence helps differentiate Genworth for those who buy and sell
their products,” said Kathleen Whalen, Managing Director at DALBAR.
The Life Insurance Service Award is based on systematic testing of
customer service throughout the year. DALBAR conducts thousands of
tests to measure how financial companies respond to the need for
service from their customers. Companies that exceed a variety of
industry benchmarks after one year of testing earn the DALBAR Service
Award.
DALBAR, Inc., the nation’s leading financial services market research
and consulting firm, is committed to raising the standards of
excellence in the financial services industry. With offices in both
the US and Canada, DALBAR develops standards for, and provides
research, ratings, and rankings of intangible factors to the mutual
fund, broker/dealer, life insurance, property and casualty, and
managed account industries. Measurements include investor behavior,
customer satisfaction, service quality, communications, Internet
services, and financial professional ratings.
Contact:
Kathleen Whalen
617.723.6400
KWhalen@Dalbar.com
SOURCE: DALBAR, Inc.
mailto:KWhalen@Dalbar.com
Copyright 2011 Marketwire, Inc., All rights reserved.
AM Best Places Ratings of AXA Financial, Inc. and Certain Subsidiaries Under …
December 17, 2011
OLDWICK, N.J., Dec 16, 2011 (BUSINESS WIRE) –
A.M. Best Co. has placed under review with negative implications
the financial strength rating (FSR) of A+ (Superior) and issuer credit
ratings (ICR) of “aa-” of certain life insurance subsidiaries of AXA
Financial, Inc. (AXA Financial) (New York, NY), including its lead
operating subsidiary, AXA Equitable Life Insurance Company (AXA
Equitable) (New York, NY). Concurrently, A.M. Best has placed under
review with negative implications the ICR of “a-” of AXA Financial and
the debt ratings of AXA Financial and AXA Equitable. (See below for a
detailed listing of the companies and ratings.)
The rating actions on AXA Financial’s life insurance subsidiaries
reflect A.M. Best’s concern with the exposure of its ultimate parent, AXA
S.A. (AXA Group) (France), to the ongoing eurozone financial crisis.
A.M. Best’s rating actions reflect AXA Group’s exposure to the continued
deterioration of the sovereign creditworthiness of several eurozone
countries and the negative economic outlook for the region. The ratings
of AXA Financial life insurance subsidiaries benefit from its ownership
by AXA Group; therefore, any deterioration in the financial strength of
AXA Group would negatively impact the ratings of AXA Financial life
insurance subsidiaries.
The ratings for AXA Financial life insurance subsidiaries will remain
under review with negative implications while A.M. Best examines the
organization’s exposure to a prolonged adverse economic environment
within the eurozone and the potential impact on its U.S. life insurance
operations.
Upward rating pressures are unlikely at this point.
Downward rating pressure may occur if there were a worsening of the AXA
Group or AXA Financial life insurance subsidiaries’ risk-adjusted
capitalization tied to investment losses, a deterioration of the
operating environment in key territories of the parent or a perceived
lessening of support for the U.S. insurance operations.
The FSR of A+ (Superior) and ICRs of “aa-” have been placed under review
with the negative implications for the following life insurance
subsidiaries of AXA Financial, Inc.:
–
AXA Equitable Life Insurance Company
–
MONY Life Insurance Company
–
MONY Life Insurance Company of America
The FSR of A (Excellent) and ICRs of “a+” have been placed under review
with negative implications for AXA Equitable Life and Annuity Company and
U.S. Financial Life Insurance Company.
The following debt ratings have been placed under review with negative
implications:
AXA Financial, Inc.– — “a-” on $350 million 7% senior
unsecured debentures, due 2028
AXA Equitable Life Insurance Company– — “a” on $200
million 7.7% surplus notes, due 2015
The principal methodology used in determining these ratings is Best’s
Credit Rating Methodology –Global Life and Non-Life Insurance Edition,
which provides a comprehensive explanation of A.M. Best’s rating process
and highlights the different rating criteria employed. Additional key
criteria utilized include: “A.M.
Best’s Ratings the Treatment of Debt”; “Equity
Credit for Hybrid Securities”; “Risk Management and the Rating
Process for Insurance Companies”; “Assessing Country Risk”; “Rating
Members of Insurance Groups”; and “Understanding BCAR for Life/Health
Insurers.” Methodologies can be found at
www.ambest.com/ratings/methodology .
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit
www.ambest.com .
Copyright (C) 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
SOURCE: A.M. Best Company
A.M. Best Company
Anthony McSwieney, 908-439-2200, ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
Copyright Business Wire 2011
Life Insurers Seek Higher Returns Despite Short interest
December 17, 2011
Life Insurers Seek Higher Returns Despite Short interest
15 December 2011
Stocks covered include:
Moves by giants Sun Life Financial and Standard Life Assurance have seen the industry gradually realize it needs to adapt its policies in the face of volatile stock markets and the low interest environment, which increasingly seem to be the norm. The industry is moving away from individual life insurance policies and towards products that provide more reliable returns.
Most shorted
The top 10 most shorted names are dominated by US stocks and all see short interest well above average levels of 2% of the total market cap. This is based on a screen of the 66 global life insurance stocks sourced from CapitalIQ with a market cap’ of greater than USD 1 billion.
Sun Life Financial Inc (SLF) and Stancorp Financial Group Inc (SFG) top the list with 9% of their total shares outstanding on loan. Investors reacted positively to Sun Life Financial’s growth plans announced earlier this week, which included plans to discontinue two U.S. products, leading to the share price rebounding from new annual lows. Although the heavily shorted stock has been subject to negative investor sentiment as the share price has halved over the year, short interest has remained flat at 9% of total shares.
In contrast to Sun Life Financial, Stancorp Financial Group has caught the eye of the short sellers following a surge in the share price from annual lows reached in September. Short interest has increased by a quarter to 9% of total shares, reaching a new annual high.
Source: Data Explorers
Author: Ben Wilkie
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Sun Life limits life policies, annuities
December 15, 2011
It isn’t quite the death of the individual life insurance policy, but lacklustre returns for the companies that sell the policies is causing some of them to get out of the business.
Sun Life Financial Inc., one of Canada’s largest life insurance companies, became the latest on Monday, opting to pursue a strategy that doesn’t involve the sale of new individual life insurance policies and variable annuities in the United States.
Just a couple of weeks ago, Montreal-based Standard Life Assurance Co. of Canada signalled it will stop selling new policies for individual life insurance and critical illness insurance in the new year. Standard’s focus will shift to group life and health products and segregated funds.
While there are different geographies and corporate concerns at play, both cases involve decisions to invest in products that provide more reliable returns for the companies in a continuing period of historically low interest rates and volatile stock markets.
Moreover, the business is increasingly becoming one of scale and captive distribution channels, and industry watchers say the companies are choosing to focus on markets and segments where they can compete.
“The insurance and variable annuity markets in the United States are intensely (and not always rationally) competitive, which makes the decision to step back from these product lines in that market a positive one for the long-term health of the company,” Rob Sedran, an analyst at CIBC World Markets, told clients in a note following Sun Life’s announcement.
The variable annuity product in particular “is one that can seemingly never simultaneously satisfy the needs of shareholders, regulators and customers,” he said, adding that while Sun Life plans to focus on activities in the U.S. that are less capital intensive “success is far from a foregone conclusion in what remains a stressed environment.”
The variable annuities business has been weighing on the insurance industry, and Sun Life’s performance, since the financial crisis of 2008. Volatile stock markets make it difficult to absorb the impact of the product’s guaranteed benefits, and the firms must commit additional regulatory capital to support the business.
“Regulatory capital requirements rise as equity markets drop. It’s a double whammy,” said Peter Routledge, an analyst at National Bank Financial.
In addition to challenges with variable annuities, insurance companies have been battling the impact of a historic period of low interest rates which force them to increase reserves to cover obligations. And attempts to raise premiums can result in a loss of business to competitors.
“Sun Life is acknowledging that it does not see the life insurance and VA business earning comfortably in excess of its cost of equity so it’s getting out of the business,” Mr. Routledge said, adding that the firm’s new chief executive Dean Connor “is signaling a relatively un-sentimental approach to evaluating the portfolio of Sun Life’s businesses” which should be good for shareholders.
Sun Life will cut 800 jobs in the United States as part of the plan to shift the focus on growth in Canada and Asia. However, it will maintain a group insurance and voluntary benefits business in the U.S. as well as MFS Investment Management, a wealth management operation based in Boston.
Some analysts who participated on a conference call with management to discuss the changes said they gained confidence that Sun Life will be able to maintain its dividend payout.
Investors seemed to agree, pushing Sun Life shares up $1.54 to close at $19.86 on the Toronto Stock Exchange on Monday.
Despite the business decisions made by Sun Life and Standard Life, consumers still have opportunities to buy individual life insurance policies.
In the U.S., large players like Met Life and John Hancock have scale efficiencies and proprietary distribution forces to make an adequate return in this business, Mr. Routledge said. In addition, mutual life insurance firms that are owned by their policy-holders continue to sell whole life insurance.
In Canada, Sun Life, Great-West Life and Industrial Alliance all have substantial proprietary distribution networks and Sun Life writes term life insurance and lower risk smaller universal life policies, the analyst said.
Posted in Life Assurance Information | 
Tags: analyst, annuity product, critical illness insurance, Financial, insurance, Life Assurance, life insurance and critical illness, life insurance companies, life insurance policies, product, standard life assurance, sun life financial, sun life financial inc
New CEO outlines Sun Life Financial growth strategy
December 14, 2011
TORONTO, Dec. 12, 2011 /PRNewswire via COMTEX/ –
Sun Life Financial Inc.
/quotes/zigman/21830 CA:SLF
-3.22%
/quotes/zigman/21811/quotes/nls/slf SLF
-3.68%
today announced the completion of a major strategic review of its
businesses. Dean A. Connor, President and Chief Executive Officer, said
the company will be repositioned to accelerate growth, improve return
on shareholders’ equity and reduce volatility by concentrating its
future growth into four key pillars:
Continuing to build on its leadership position in Canada in insurance,
wealth management and employee benefits;
Becoming a leader in group insurance and voluntary benefits in the U.S.;
Supporting continued growth in MFS Investment Management, and broadening
Sun Life’s other asset management businesses around the world; and
Strengthening Sun Life’s competitive position in Asia.
As a result of this strategic review, the Company announced that it will
close its domestic U.S. variable annuity and individual life products
to new sales effective December 30, 2011. The decision to discontinue
sales in these two lines of business is based on unfavourable product
economics which, due to ongoing shifts in capital markets and
regulatory requirements, no longer enhance shareholder value. This
decision reflects the Company’s intensified focus on reducing
volatility and improving the return on shareholders’ equity by shifting
capital to businesses with superior growth, risk and return
characteristics.
The decision to stop selling variable annuity and individual life
products in the U.S. will not impact existing customers and their
policies. The Company will continue to provide quality service to its
policyholders, while focusing on the profitability, capital efficiency
and risk management of the in-force business.
“To achieve growth in the U.S., we will focus on increasing sales in our
employee benefits business, which is already a top ten player, and will
expand our presence in the growing voluntary benefits segment. We are
confident that with the focused investment announced earlier this year
we can build leading positions in these two sustainable, less
capital-intensive businesses. We will also continue to support growth
in MFS, our highly successful investment manager that has a large U.S.
presence and over US$250 billion of assets under management globally,”
said Connor.
The changes announced today are not expected to have a material impact
on the Company’s 2012 operating net income. The estimated one-time
transition cost associated with the discontinuation of these products
is approximately $75 to $100 million on a pre-tax basis, a portion of
which will be recorded in the fourth quarter of 2011, with the
remainder expected to be charged to income in 2012. There is no
immediate impact to the Risk-Based Capital ratio of Sun Life Assurance
Company of Canada (U.S.) or to the Minimum Continuing Capital and
Surplus Requirements ratio of Sun Life Assurance Company of Canada. In
addition, as at September 30, 2011, there is $97 million of goodwill
associated with variable annuity business in SLF U.S. which will be
reviewed and likely written down as part of the Company’s decision to
discontinue sales of the product.
“Today begins a new chapter in the history of Sun Life Financial,” said
Connor. “We are charting a new course with a new strategy that
leverages what we do best today, and positions us for success as we
pursue the many opportunities in our business around the world.”
Investor conference call
Sun Life Financial will hold an investor conference call on Monday,
December 12, 2011, at 8:00 a.m. ET. The conference call will be hosted
by Dean A. Connor, President and Chief Executive Officer, who will
provide a strategic update on the Company to investors, followed by a
question and answer session.
The conference call will be available via live audio webcast (
http://www.media-server.com/m/p/s327btqm ) and by telephone. To access the conference call by telephone, dial
416-644-3416 (Toronto), or 1-800-814-4860 (Canada/U.S.). Individuals
participating in the call in a listen-only mode are encouraged to
connect via the webcast.
The investor conference call will be archived and made available until
December 26, 2011. To listen to a replay of the conference call, dial
416-640-1917 (Toronto) or 1-877-289-8525 and enter access code 4496444.
The archive of the audio webcast will also be available on the
Company’s website at
www.sunlife.com/PresentationsForInvestors .
Forward-looking information
Certain information in this document, including information relating to
Sun Life Financial’s strategies and other statements that are
predictive in nature, that depends upon or refers to future events or
conditions, including information in this news release and the investor
call referred to above concerning the Company’s decision to close its
U.S. variable annuity and individual life products to new sales,
statements and information that includes words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar
expressions, are forward-looking statements within the meaning of
securities laws. These statements represent the Company’s expectations,
estimates and projections regarding future events and are not
historical facts. Forward-looking information is not a guarantee of
future performance and involves risks and uncertainties that are
difficult to predict. Future results and shareholder value may differ
materially from those expressed in this forward-looking information due
to, among other factors, the matters set out under Risk Factors in the
Company’s 2010 Annual Information Form and the factors detailed in its
other filings with Canadian and U.S. securities regulators, including
its annual and interim Management’s Discussion and Analysis and annual
and interim Consolidated Financial Statements.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, changes in legislation
and regulations including capital requirements and tax laws; investment
losses and defaults and changes to investment valuations; the
performance of equity markets; the cost, effectiveness and availability
of risk-mitigating hedging programs; losses relating to real estate
investments; the creditworthiness of guarantors and counterparties to
derivatives; changes and volatility in interest rates and credit/swap
spreads; other market risks including movement in credit spreads; risks
relating to product design and pricing; market conditions that
adversely affect the Company’s capital position or its ability to raise
capital; possible sustained economic downturn; regulatory
investigations and proceedings and private legal proceedings and class
actions relating to practices in the mutual fund, insurance, annuity
and financial product distribution industries; risks related to market
liquidity; downgrades in financial strength or credit ratings; the
ability to attract and retain employees; risks relating to financial
modelling errors; the performance of the Company’s investments and
investment portfolios managed for clients such as segregated and mutual
funds; the impact of mergers and acquisitions; insurance risks
including mortality, morbidity, including the occurrence of natural or
man-made disasters, pandemic diseases and acts of terrorism; adverse
mortality and morbidity experience; uncertainty in the rate of
mortality improvement; risks relating to policyholder behaviour; the
inability to maintain strong distribution channels and risks relating
to market conduct by intermediaries and agents; risks relating to
operations in Asia including risks relating to joint ventures; the
impact of competition; currency exchange rate fluctuations; business
continuity risks; failure of information systems and Internet-enabled
technology; breaches of computer security and privacy; dependence on
third-party relationships including outsourcing arrangements; the
impact of adverse results in the closed block of business; the
potential for financial loss related to changes in the environment; the
availability, cost and effectiveness of reinsurance; the
ineffectiveness of risk management policies and procedures; the impact
of higher-than-expected future expense cash flows; and the risks
relating to the significant estimates and judgment in calculating
taxes. In addition to the foregoing, the anticipated benefits from
discontinuing the sale of domestic U.S. variable annuities and
individual life products may not be achieved for a variety of reasons,
including the factors described above and we could face other
pressures, as a result of this decision, such as employee recruitment
and retention issues and potential loss of distributors for our other
U.S. products. The Company does not undertake any obligation to update
or revise its forward-looking information to reflect events or
circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial 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, 2011, the Sun
Life Financial group of companies had total assets under management of
$459 billion. For more information please visit
www.sunlife.com .
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars, unless otherwise
noted.
SOURCE Sun Life Financial Inc.
Copyright (C) 2011 PR Newswire. All rights reserved
/quotes/zigman/21830
Add SLF to portfolio
CA:SLF
/quotes/zigman/21811/quotes/nls/slf
Allianz Life names new CEO
December 14, 2011
Allianz Life names new CEO
Walter White takes helm of U.S. ops, arrives with brokerage expertise
December 14, 2011 12:24 pm ET
Allianz Life Insurance Co. of North America today promoted Walter White to chief executive, succeeding Gary Bhojwani.
Advertisement
Related to this story
Parent company Allianz SE has elevated Mr. Bhojwani to its management board, where he now will oversee the U.S. property/casualty and life insurance businesses, effective Jan. 1. He will remain based in the U.S.
Mr. White is Allianz Life’s chief administrative officer. In that capacity, he has overseen information technology and Allianz Life’s strategic operations. Allianz Life spokesman Paul Kelash confirmed Mr. White’s promotion.
Mr. White’s background includes some experience on the securities side. Prior to joining Allianz in 2009, he was president of Woodbury Financial Services, The Hartford Financial Services Group Inc.’s independent broker-dealer. Previously, he was president of MONY Brokerage.
Mr. Bhojwani’s elevation is part of a series of new additions to Allianz SE’s management board in light of the upcoming departures of finance chief Paul Achleitner, who will join Deutsche Bank AG’s supervisory board in May, and Enrico Cucchiani, who was chairman of Allianz’s Italian business and will helm Italian bank Intesa Sanpaolo SpA as its CEO.
Maximilian Zimmerer will take over Mr. Achleitner’s board responsibilities on June 1.
Allianz also named Helga Jung and Dieter Wemmer to the management board. Ms. Jung will oversee the insurance business in Spain, Portugal and Latin America, as well as mergers and acquisitions, and legal and compliance. Mr. Wemmer will cover insurance activities in Western Europe, exclusive of Spain, Portugal and German-speaking nations.
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Comments
Posted in Life Assurance Information | Tags: Allianz, allianz life insurance, allianz life insurance co, Financial, financial services group, hartford financial services, hartford financial services group, hartford financial services group inc, independent broker dealer, Life Assurance, president, technology, woodbury financial services
Yahoo! Finance
December 14, 2011
TORONTO , Dec. 12, 2011 /CNW/ – Sun Life Financial Inc. (TSX: SLF.TO – News) (NYSE:
SLF.TO – News) today announced the completion of a major strategic review of its
businesses. Dean A. Connor, President and Chief Executive Officer, said
the company will be repositioned to accelerate growth, improve return
on shareholders’ equity and reduce volatility by concentrating its
future growth into four key pillars:
-
Continuing to build on its leadership position in Canada in insurance,
wealth management and employee benefits; - Becoming a leader in group insurance and voluntary benefits in the U.S.;
-
Supporting continued growth in MFS Investment Management, and broadening
Sun Life’s other asset management businesses around the world; and - Strengthening Sun Life’s competitive position in Asia.
As a result of this strategic review, the Company announced that it will
close its domestic U.S. variable annuity and individual life products
to new sales effective December 30, 2011 . The decision to discontinue
sales in these two lines of business is based on unfavourable product
economics which, due to ongoing shifts in capital markets and
regulatory requirements, no longer enhance shareholder value. This
decision reflects the Company’s intensified focus on reducing
volatility and improving the return on shareholders’ equity by shifting
capital to businesses with superior growth, risk and return
characteristics.
The decision to stop selling variable annuity and individual life
products in the U.S. will not impact existing customers and their
policies. The Company will continue to provide quality service to its
policyholders, while focusing on the profitability, capital efficiency
and risk management of the in-force business.
“To achieve growth in the U.S., we will focus on increasing sales in our
employee benefits business, which is already a top ten player, and will
expand our presence in the growing voluntary benefits segment. We are
confident that with the focused investment announced earlier this year
we can build leading positions in these two sustainable, less
capital-intensive businesses. We will also continue to support growth
in MFS, our highly successful investment manager that has a large U.S.
presence and over US$250 billion of assets under management globally,”
said Connor.
The changes announced today are not expected to have a material impact
on the Company’s 2012 operating net income. The estimated one-time
transition cost associated with the discontinuation of these products
is approximately $75 to $100 million on a pre-tax basis, a portion of
which will be recorded in the fourth quarter of 2011, with the
remainder expected to be charged to income in 2012. There is no
immediate impact to the Risk-Based Capital ratio of Sun Life Assurance
Company of Canada (U.S.) or to the Minimum Continuing Capital and
Surplus Requirements ratio of Sun Life Assurance Company of Canada . In
addition, as at September 30, 2011 , there is $97 million of goodwill
associated with variable annuity business in SLF U.S. which will be
reviewed and likely written down as part of the Company’s decision to
discontinue sales of the product.
“Today begins a new chapter in the history of Sun Life Financial,” said
Connor. “We are charting a new course with a new strategy that
leverages what we do best today, and positions us for success as we
pursue the many opportunities in our business around the world.”
Investor conference call
Sun Life Financial will hold an investor conference call on Monday,
December 12, 2011 , at 8:00 a.m. ET . The conference call will be hosted
by Dean A. Connor, President and Chief Executive Officer, who will
provide a strategic update on the Company to investors, followed by a
question and answer session.
The conference call will be available via live audio webcast (http://www.media-server.com/m/p/s327btqm) and by telephone. To access the conference call by telephone, dial
416-644-3416 ( Toronto ), or 1-800-814-4860 (Canada/U.S.). Individuals
participating in the call in a listen-only mode are encouraged to
connect via the webcast.
The investor conference call will be archived and made available until
December 26, 2011 . To listen to a replay of the conference call, dial
416-640-1917 ( Toronto ) or 1-877-289-8525 and enter access code 4496444.
The archive of the audio webcast will also be available on the
Company’s website at www.sunlife.com/PresentationsForInvestors.
Forward-looking information
Certain information in this document, including information relating to
Sun Life Financial’s strategies and other statements that are
predictive in nature, that depends upon or refers to future events or
conditions, including information in this news release and the investor
call referred to above concerning the Company’s decision to close its
U.S. variable annuity and individual life products to new sales,
statements and information that includes words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar
expressions, are forward-looking statements within the meaning of
securities laws. These statements represent the Company’s expectations,
estimates and projections regarding future events and are not
historical facts. Forward-looking information is not a guarantee of
future performance and involves risks and uncertainties that are
difficult to predict. Future results and shareholder value may differ
materially from those expressed in this forward-looking information due
to, among other factors, the matters set out under Risk Factors in the
Company’s 2010 Annual Information Form and the factors detailed in its
other filings with Canadian and U.S. securities regulators, including
its annual and interim Management’s Discussion and Analysis and annual
and interim Consolidated Financial Statements.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, changes in legislation
and regulations including capital requirements and tax laws; investment
losses and defaults and changes to investment valuations; the
performance of equity markets; the cost, effectiveness and availability
of risk-mitigating hedging programs; losses relating to real estate
investments; the creditworthiness of guarantors and counterparties to
derivatives; changes and volatility in interest rates and credit/swap
spreads; other market risks including movement in credit spreads; risks
relating to product design and pricing; market conditions that
adversely affect the Company’s capital position or its ability to raise
capital; possible sustained economic downturn; regulatory
investigations and proceedings and private legal proceedings and class
actions relating to practices in the mutual fund, insurance, annuity
and financial product distribution industries; risks related to market
liquidity; downgrades in financial strength or credit ratings; the
ability to attract and retain employees; risks relating to financial
modelling errors; the performance of the Company’s investments and
investment portfolios managed for clients such as segregated and mutual
funds; the impact of mergers and acquisitions; insurance risks
including mortality, morbidity, including the occurrence of natural or
man-made disasters, pandemic diseases and acts of terrorism; adverse
mortality and morbidity experience; uncertainty in the rate of
mortality improvement; risks relating to policyholder behaviour; the
inability to maintain strong distribution channels and risks relating
to market conduct by intermediaries and agents; risks relating to
operations in Asia including risks relating to joint ventures; the
impact of competition; currency exchange rate fluctuations; business
continuity risks; failure of information systems and Internet-enabled
technology; breaches of computer security and privacy; dependence on
third-party relationships including outsourcing arrangements; the
impact of adverse results in the closed block of business; the
potential for financial loss related to changes in the environment; the
availability, cost and effectiveness of reinsurance; the
ineffectiveness of risk management policies and procedures; the impact
of higher-than-expected future expense cash flows; and the risks
relating to the significant estimates and judgment in calculating
taxes. In addition to the foregoing, the anticipated benefits from
discontinuing the sale of domestic U.S. variable annuities and
individual life products may not be achieved for a variety of reasons,
including the factors described above and we could face other
pressures, as a result of this decision, such as employee recruitment
and retention issues and potential loss of distributors for our other
U.S. products. The Company does not undertake any obligation to update
or revise its forward-looking information to reflect events or
circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial 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, 2011 , the Sun
Life Financial group of companies had total assets under management of
$459 billion . For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars, unless otherwise
noted.
New CEO outlines Sun Life Financial growth strategy
December 14, 2011
TORONTO, Dec. 12, 2011, 2011 (Canada NewsWire via COMTEX) –
Sun Life Financial Inc.
/quotes/zigman/21830 CA:SLF
-3.22%
/quotes/zigman/21811/quotes/nls/slf SLF
-3.68%
today announced the completion of a major strategic review of its
businesses. Dean A. Connor, President and Chief Executive Officer, said
the company will be repositioned to accelerate growth, improve return
on shareholders’ equity and reduce volatility by concentrating its
future growth into four key pillars:
-- Continuing to build on its leadership position in Canada in
insurance, wealth management and employee benefits;
-- Becoming a leader in group insurance and voluntary benefits in
the U.S.;
-- Supporting continued growth in MFS Investment Management, and
broadening Sun Life's other asset management businesses around
the world; and
-- Strengthening Sun Life's competitive position in Asia.
As a result of this strategic review, the Company announced that it will
close its domestic U.S. variable annuity and individual life products
to new sales effective December 30, 2011. The decision to discontinue
sales in these two lines of business is based on unfavourable product
economics which, due to ongoing shifts in capital markets and
regulatory requirements, no longer enhance shareholder value. This
decision reflects the Company’s intensified focus on reducing
volatility and improving the return on shareholders’ equity by shifting
capital to businesses with superior growth, risk and return
characteristics.
The decision to stop selling variable annuity and individual life
products in the U.S. will not impact existing customers and their
policies. The Company will continue to provide quality service to its
policyholders, while focusing on the profitability, capital efficiency
and risk management of the in-force business.
“To achieve growth in the U.S., we will focus on increasing sales in our
employee benefits business, which is already a top ten player, and will
expand our presence in the growing voluntary benefits segment. We are
confident that with the focused investment announced earlier this year
we can build leading positions in these two sustainable, less
capital-intensive businesses. We will also continue to support growth
in MFS, our highly successful investment manager that has a large U.S.
presence and over US$250 billion of assets under management globally,”
said Connor.
The changes announced today are not expected to have a material impact
on the Company’s 2012 operating net income. The estimated one-time
transition cost associated with the discontinuation of these products
is approximately $75 to $100 million on a pre-tax basis, a portion of
which will be recorded in the fourth quarter of 2011, with the
remainder expected to be charged to income in 2012. There is no
immediate impact to the Risk-Based Capital ratio of Sun Life Assurance
Company of Canada (U.S.) or to the Minimum Continuing Capital and
Surplus Requirements ratio of Sun Life Assurance Company of Canada. In
addition, as at September 30, 2011, there is $97 million of goodwill
associated with variable annuity business in SLF U.S. which will be
reviewed and likely written down as part of the Company’s decision to
discontinue sales of the product.
“Today begins a new chapter in the history of Sun Life Financial,” said
Connor. “We are charting a new course with a new strategy that
leverages what we do best today, and positions us for success as we
pursue the many opportunities in our business around the world.”
Investor conference call
Sun Life Financial will hold an investor conference call on Monday,
December 12, 2011, at 8:00 a.m. ET. The conference call will be hosted
by Dean A. Connor, President and Chief Executive Officer, who will
provide a strategic update on the Company to investors, followed by a
question and answer session.
The conference call will be available via live audio webcast (
http://www.media-server.com/m/p/s327btqm
) and by telephone. To access the conference call by telephone, dial
416-644-3416 (Toronto), or 1-800-814-4860 (Canada/U.S.). Individuals
participating in the call in a listen-only mode are encouraged to
connect via the webcast.
The investor conference call will be archived and made available until
December 26, 2011. To listen to a replay of the conference call, dial
416-640-1917 (Toronto) or 1-877-289-8525 and enter access code 4496444.
The archive of the audio webcast will also be available on the
Company’s website at
www.sunlife.com/PresentationsForInvestors
.
Forward-looking information
Certain information in this document, including information relating to
Sun Life Financial’s strategies and other statements that are
predictive in nature, that depends upon or refers to future events or
conditions, including information in this news release and the investor
call referred to above concerning the Company’s decision to close its
U.S. variable annuity and individual life products to new sales,
statements and information that includes words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar
expressions, are forward-looking statements within the meaning of
securities laws. These statements represent the Company’s expectations,
estimates and projections regarding future events and are not
historical facts. Forward-looking information is not a guarantee of
future performance and involves risks and uncertainties that are
difficult to predict. Future results and shareholder value may differ
materially from those expressed in this forward-looking information due
to, among other factors, the matters set out under Risk Factors in the
Company’s 2010 Annual Information Form and the factors detailed in its
other filings with Canadian and U.S. securities regulators, including
its annual and interim Management’s Discussion and Analysis and annual
and interim Consolidated Financial Statements.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, changes in legislation
and regulations including capital requirements and tax laws; investment
losses and defaults and changes to investment valuations; the
performance of equity markets; the cost, effectiveness and availability
of risk-mitigating hedging programs; losses relating to real estate
investments; the creditworthiness of guarantors and counterparties to
derivatives; changes and volatility in interest rates and credit/swap
spreads; other market risks including movement in credit spreads; risks
relating to product design and pricing; market conditions that
adversely affect the Company’s capital position or its ability to raise
capital; possible sustained economic downturn; regulatory
investigations and proceedings and private legal proceedings and class
actions relating to practices in the mutual fund, insurance, annuity
and financial product distribution industries; risks related to market
liquidity; downgrades in financial strength or credit ratings; the
ability to attract and retain employees; risks relating to financial
modelling errors; the performance of the Company’s investments and
investment portfolios managed for clients such as segregated and mutual
funds; the impact of mergers and acquisitions; insurance risks
including mortality, morbidity, including the occurrence of natural or
man-made disasters, pandemic diseases and acts of terrorism; adverse
mortality and morbidity experience; uncertainty in the rate of
mortality improvement; risks relating to policyholder behaviour; the
inability to maintain strong distribution channels and risks relating
to market conduct by intermediaries and agents; risks relating to
operations in Asia including risks relating to joint ventures; the
impact of competition; currency exchange rate fluctuations; business
continuity risks; failure of information systems and Internet-enabled
technology; breaches of computer security and privacy; dependence on
third-party relationships including outsourcing arrangements; the
impact of adverse results in the closed block of business; the
potential for financial loss related to changes in the environment; the
availability, cost and effectiveness of reinsurance; the
ineffectiveness of risk management policies and procedures; the impact
of higher-than-expected future expense cash flows; and the risks
relating to the significant estimates and judgment in calculating
taxes. In addition to the foregoing, the anticipated benefits from
discontinuing the sale of domestic U.S. variable annuities and
individual life products may not be achieved for a variety of reasons,
including the factors described above and we could face other
pressures, as a result of this decision, such as employee recruitment
and retention issues and potential loss of distributors for our other
U.S. products. The Company does not undertake any obligation to update
or revise its forward-looking information to reflect events or
circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial 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, 2011, the Sun
Life Financial group of companies had total assets under management of
$459 billion. For more information please visit
www.sunlife.com
.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars, unless otherwise
noted.
To view this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/December2011/12/c5845.html
SOURCE: Sun Life Financial Inc.
Media Relations Contact: Frank Switzer Vice-President Corporate Communications Tel:
416-979-4086 frank.switzer@sunlife.com
Investor Relations Contact: Phil Malek Vice-President Investor Relations Tel:
416-979-4198 investor.relations@sunlife.com
Copyright (C) 2011 CNW Group. All rights reserved.
/quotes/zigman/21830
Add SLF to portfolio
CA:SLF
/quotes/zigman/21811/quotes/nls/slf
S&P puts Sun Life on negative watch
December 14, 2011
Dec 13, 2011 – 5:22 PM ET
| Last Updated: Dec 13, 2011 6:17 PM ET
Dave Sidaway/City
Sun Life building in downtown Montreal.
Ratings giant Standard Poor’s warned on Tuesday it may downgrade Sun Life Financial Inc. a day after the company announced it will discontinue U.S. sales of variable annuities and individual life products.
SP said the move to reduce the U.S. product line could result in “a reduction in earnings quality or diversification”, potentially impacting Sun Life’s business or financial risk profile.
SP placed its ratings including its counterparty credit rating on Canada’s third largest life insurer on watch for a possible downgrade.
Further, SP said it no longer considers Sun Life U.S. “to be core to Sun Life Financial Inc.”, the Canadian parent, “primarily because Sun Life U.S. will cease writing meaningful new business as of Dec 31, 2011,” diminishing the company’s presence south of the border.
It said it expects to make a final decision on the ratings within three months following further analysis of the situation.
Insurance companies typically employ the premium payments from policy holders to buy fixed income investments, relying on the interest revenue to meet future policy obligations.
But the current low interest rate environment has put huge pressure on the industry as revenue from investments has plummeted, slashing profit margins and forcing players to reconsider strategy.
In addition, new financial industry regulations especially in the United States have also been onerous, increasing both administrative and capital costs.
Meanwhile, the variable annuity business has been hit by stock market volatility and declining expectations in the face of the European debt crisis.
Sun Life isn’t the only player to revamp strategy around life insurance. At the end of November Standard Life Assurance of Canada, a subsidiary of U.K.-based Standard Life Plc, announced it would stop selling plain vanilla life policies in this country.
Shares in Sun Life slipped 3.2% to close at $19.22.
Posted in: FP Street, Trading Desk
Tags: downgrade, SP, Sun Life, Sun Life Financial Inc.
New CEO outlines Sun Life Financial growth strategy
December 12, 2011
My news for Investors
TORONTO, Dec. 12, 2011 /PRNewswire/ – Sun Life Financial Inc. (TSX: SLF) (NYSE:
SLF) today announced the completion of a major strategic review of its
businesses. Dean A. Connor, President and Chief Executive Officer, said
the company will be repositioned to accelerate growth, improve return
on shareholders’ equity and reduce volatility by concentrating its
future growth into four key pillars:
-
Continuing to build on its leadership position in Canada in insurance,
wealth management and employee benefits; - Becoming a leader in group insurance and voluntary benefits in the U.S.;
-
Supporting continued growth in MFS Investment Management, and broadening
Sun Life’s other asset management businesses around the world; and - Strengthening Sun Life’s competitive position in Asia.
As a result of this strategic review, the Company announced that it will
close its domestic U.S. variable annuity and individual life products
to new sales effective December 30, 2011. The decision to discontinue
sales in these two lines of business is based on unfavourable product
economics which, due to ongoing shifts in capital markets and
regulatory requirements, no longer enhance shareholder value. This
decision reflects the Company’s intensified focus on reducing
volatility and improving the return on shareholders’ equity by shifting
capital to businesses with superior growth, risk and return
characteristics.
The decision to stop selling variable annuity and individual life
products in the U.S. will not impact existing customers and their
policies. The Company will continue to provide quality service to its
policyholders, while focusing on the profitability, capital efficiency
and risk management of the in-force business.
“To achieve growth in the U.S., we will focus on increasing sales in our
employee benefits business, which is already a top ten player, and will
expand our presence in the growing voluntary benefits segment. We are
confident that with the focused investment announced earlier this year
we can build leading positions in these two sustainable, less
capital-intensive businesses. We will also continue to support growth
in MFS, our highly successful investment manager that has a large U.S.
presence and over US$250 billion of assets under management globally,”
said Connor.
The changes announced today are not expected to have a material impact
on the Company’s 2012 operating net income. The estimated one-time
transition cost associated with the discontinuation of these products
is approximately $75 to $100 million on a pre-tax basis, a portion of
which will be recorded in the fourth quarter of 2011, with the
remainder expected to be charged to income in 2012. There is no
immediate impact to the Risk-Based Capital ratio of Sun Life Assurance
Company of Canada (U.S.) or to the Minimum Continuing Capital and
Surplus Requirements ratio of Sun Life Assurance Company of Canada. In
addition, as at September 30, 2011, there is $97 million of goodwill
associated with variable annuity business in SLF U.S. which will be
reviewed and likely written down as part of the Company’s decision to
discontinue sales of the product.
“Today begins a new chapter in the history of Sun Life Financial,” said
Connor. “We are charting a new course with a new strategy that
leverages what we do best today, and positions us for success as we
pursue the many opportunities in our business around the world.”
Investor conference call
Sun Life Financial will hold an investor conference call on Monday,
December 12, 2011, at 8:00 a.m. ET. The conference call will be hosted
by Dean A. Connor, President and Chief Executive Officer, who will
provide a strategic update on the Company to investors, followed by a
question and answer session.
The conference call will be available via live audio webcast (http://www.media-server.com/m/p/s327btqm) and by telephone. To access the conference call by telephone, dial
416-644-3416 (Toronto), or 1-800-814-4860 (Canada/U.S.). Individuals
participating in the call in a listen-only mode are encouraged to
connect via the webcast.
The investor conference call will be archived and made available until
December 26, 2011. To listen to a replay of the conference call, dial
416-640-1917 (Toronto) or 1-877-289-8525 and enter access code 4496444.
The archive of the audio webcast will also be available on the
Company’s website at www.sunlife.com/PresentationsForInvestors.
Forward-looking information
Certain information in this document, including information relating to
Sun Life Financial’s strategies and other statements that are
predictive in nature, that depends upon or refers to future events or
conditions, including information in this news release and the investor
call referred to above concerning the Company’s decision to close its
U.S. variable annuity and individual life products to new sales,
statements and information that includes words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar
expressions, are forward-looking statements within the meaning of
securities laws. These statements represent the Company’s expectations,
estimates and projections regarding future events and are not
historical facts. Forward-looking information is not a guarantee of
future performance and involves risks and uncertainties that are
difficult to predict. Future results and shareholder value may differ
materially from those expressed in this forward-looking information due
to, among other factors, the matters set out under Risk Factors in the
Company’s 2010 Annual Information Form and the factors detailed in its
other filings with Canadian and U.S. securities regulators, including
its annual and interim Management’s Discussion and Analysis and annual
and interim Consolidated Financial Statements.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, changes in legislation
and regulations including capital requirements and tax laws; investment
losses and defaults and changes to investment valuations; the
performance of equity markets; the cost, effectiveness and availability
of risk-mitigating hedging programs; losses relating to real estate
investments; the creditworthiness of guarantors and counterparties to
derivatives; changes and volatility in interest rates and credit/swap
spreads; other market risks including movement in credit spreads; risks
relating to product design and pricing; market conditions that
adversely affect the Company’s capital position or its ability to raise
capital; possible sustained economic downturn; regulatory
investigations and proceedings and private legal proceedings and class
actions relating to practices in the mutual fund, insurance, annuity
and financial product distribution industries; risks related to market
liquidity; downgrades in financial strength or credit ratings; the
ability to attract and retain employees; risks relating to financial
modelling errors; the performance of the Company’s investments and
investment portfolios managed for clients such as segregated and mutual
funds; the impact of mergers and acquisitions; insurance risks
including mortality, morbidity, including the occurrence of natural or
man-made disasters, pandemic diseases and acts of terrorism; adverse
mortality and morbidity experience; uncertainty in the rate of
mortality improvement; risks relating to policyholder behaviour; the
inability to maintain strong distribution channels and risks relating
to market conduct by intermediaries and agents; risks relating to
operations in Asia including risks relating to joint ventures; the
impact of competition; currency exchange rate fluctuations; business
continuity risks; failure of information systems and Internet-enabled
technology; breaches of computer security and privacy; dependence on
third-party relationships including outsourcing arrangements; the
impact of adverse results in the closed block of business; the
potential for financial loss related to changes in the environment; the
availability, cost and effectiveness of reinsurance; the
ineffectiveness of risk management policies and procedures; the impact
of higher-than-expected future expense cash flows; and the risks
relating to the significant estimates and judgment in calculating
taxes. In addition to the foregoing, the anticipated benefits from
discontinuing the sale of domestic U.S. variable annuities and
individual life products may not be achieved for a variety of reasons,
including the factors described above and we could face other
pressures, as a result of this decision, such as employee recruitment
and retention issues and potential loss of distributors for our other
U.S. products. The Company does not undertake any obligation to update
or revise its forward-looking information to reflect events or
circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial 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, 2011, the Sun
Life Financial group of companies had total assets under management of
$459 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars, unless otherwise
noted.
SOURCE Sun Life Financial Inc.
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