Sun Life Financial Philippines insurance arm posts net income of P2.3b last year

SUN Life of Canada (Philippines), Inc. (SLOCPI), the life insurance arm of Sun Life Financial Philippines, reports its net income in 2008 increased by 44 percent over the previous year’s level.

In a statement, SLOCPI said its core business remains strong with a net income last year of P2.3 billion, compared with P1.6 billion in 2007.

“Our life insurance business continues to generate robust earnings despite the very challenging financial services environment last year,” said Sun Life Financial Philippines president and chief executive officer Henry Joseph Herrera who cited particularly the company’s stable premium revenue and resilient investment income as main factors that hiked SLOCPI’s earnings.

Premium revenues reached P8.3 billion while investment income reached P7.8 billion. Compared to the previous year, total premium revenues have slowed down marginally by three percent while investment income rose by 44 percent.

“In a challenging environment, our loan portfolio remains 100 percent current, reflecting a zero percent non-performing loan.” Herrera said.

“We have consistently been prudent in managing our operating expenses and we have very good investment income borne out of our disciplined approach to investments. We invest mainly in government securities and high quality corporate debt instruments,” the Sun Life chief added.

Product development, according to Herrera, likewise played a great part in maintaining robust growth.

“We are ably guided by our ongoing global research called SOLAR (Study on Lifestyles, Attitudes and Relationships) in designing products that would suit the varying financial requirements of our markets. The market study in Asia is being conducted in the Philippines, Hong Kong, Indonesia, China and India,” Herrera said.

Finally, Herrera noted that the company has expanded its geographic coverage with the opening of three more Sales Offices in the last quarter, bringing a total of eight new sales offices in 2008.

As of year end 2008, Sun Life has 32 branches, 36 sales offices and five financial stores nationwide.

“Our continuous expansion program is consistent with our vision of providing financial freedom for Filipinos, and this mission is ably carried out primarily by our strong agency force whose dedication to their craft and passion for excellence have remained a key driver for our continuing growth,” Herrera concluded.

Sun Life Financial-Philippines introduced life insurance in the Philippines in 1895 and is a member of the Sun Life Financial group of companies, a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers.

Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

As of December 31, 2008 the Sun Life Financial group of companies had total assets under management of Can$381 billion. Sun Life Financial, Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

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