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Sun Life open to acquisitions, but not to no matter what the conditions

by

Hubert Roy

October 23, 2018 09:30

Photo : Freepik

Although it has a war chest of $ 2.6 billion (G$) to make acquisitions, Sun Life Financial does will press no.

This is the message wanted to pass on the leadership of Sun Life financial analysts who participated in the teleconference on 9 August last, in consequence of the disclosure of its results for the second quarter of 2018. The transcript of this conference has been made public there is little, and the Log of the insurance is aware of it.

Analysts have asked many questions about the potential targets of Sun Life. Its CEO Dean A. Connor , however, was clear, there must be a compatibility strategic before making a purchase.

“The assets are still at the upper end of valuation ranges. Around the world, we have not found something that we should have in the moment. We want to acquire strong companies. We are therefore working to maintain the conversation with the targets to which we believe we can bring something. “

Even if he doesn’t foresee a transaction imminent, Sun Life continues to maintain many of the talks, said Mr. Connor. “The gestation period of a transaction is measured in years, not months, in the current market. This is why we must work to build a relationship where these businesses come to see that we would a very beautiful home for their business. The transactions that we have conducted during the past years reflected this. This is what you are in search of. “

16% increase in sales of individual life in Canada

The officers of Sun Life have also taken the opportunity to disclose some figures about their sales in Canada. Thus, the sales of individual life insurance recorded a rise of 16 % in the second quarter of 2018. The insurer states dominate sales in the individual life insurance in the country for the last five quarters.

The increase is the same for group insurance, or 16 %, was revealed to the insurer.

Dean Connor was also noted that Sun Life has passed the milestone of$ 100 billion of assets under management in its business pension plans, an increase of 8 % compared to the same period a year ago. As well, 1.4 million Canadians are now clients of this branch of the insurer, where it said to hold the first place of the market in Canada. Benefits, what are 5 million Canadians who deal with Sun Life.

Division of Sun Life financial Canada has recorded a decline in its sales in wealth management of the order of 20% in the second quarter of 2018. This is explained in part by the sale of a large portfolio of annuities. At the level of individual sales in wealth management, the sales increase is 7 %.

Sun Life Financial will present its results for the third quarter of 2018 on November 7th.

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