Sun Life Financial Inc T.SLF.PR.K

Primary Symbol: T.SLF Alternate Symbol(s): T.SLF.PR.E | T.SLF.PR.G | SUNFF | T.SLF.PR.H | T.SLF.PR.J | SNLFF | SLFIF | SLF | SNLIF | T.SLF.PR.C | T.SLF.PR.D

Financial Services Insurance - Diversified

Sun Life Financial Inc. is a Canada-based international financial services company, which offers asset management, wealth, insurance and health solutions to individual and institutional clients. Its segments include Canada, United States (U.S.), Asset Management, Asia, and Corporate. The Canada segment provides protection, health, asset management and wealth solutions. It also offers a premier health and wellness virtual care platform. The U.S. segment provides employee and government benefits in the United States. Its business units include group benefits, dental and in-force management. The Asset Management business group includes MFS and SLC Management. MFS is an asset manager offering a comprehensive selection of financial products and services. The Asia segment consists of two business units: Local Markets and International Hubs. It has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, India and others.

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Sun Life Financial Inc

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Post by retiredcfon Nov 18, 2020 8:50am

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Post# 31920937

TD

This is a flash report so there's potential for them to raise their current $68.00 target. GLTA

Sun Life Financial Inc.

(SLF-T, SLF-N) C$59.14 | US$45.15

SLF Forms 15-Year Exclusive Bancassurance Partnership with ACB

Event

Sun Life announced that it has entered into a 15-year exclusive bancassurance partnership with Asia Commercial Joint Stock Bank (ACB) in Vietnam. The partnership will be launched January 1, 2021.

Impact: POSITIVE

Transaction Details: SLF will pay ACB ~US$370mm with ongoing variable payments based on the success of the partnership. The deal is expected to be accretive to underlying EPS after 2022 but management did not quantify the magnitude. It is expected to reduce the LICAT ratio of the holdco by 2-points.

Description: ACB has 371 branches and over 3.6mm clients across Vietnam. The bank is the 8th largest in Vietnam with assets of ~US$18bn as of Q3/20; this has doubled since 2015. They are the third-largest in terms of bancassurance sales through the first half of 2020.

Strategic Considerations: The partnership is consistent and on-strategy with SLF's goal of continuing to expand its Asia operations and broaden its distribution capabilities. This transaction is very similar to the 15-year bancassurance partnership they formed with TPBank in Vietnam in November 2019. As of Q3/20, 50% of SLF Vietnam's insurance sales were via the bancassurance channel. The partnership with ACB will likely further increase that ratio going forward.

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