This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

A.M. Best Affirms Ratings Of Sun Life Financial Inc. And Its Subsidiaries

A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada) and Sun Life and Health Insurance Company (U.S.) (SLHIC) (Windsor, CT)—the core insurance subsidiaries of Sun Life Financial Inc. (SLF) (Ontario, Canada) [NYSE:SLF]. Concurrently, A.M. Best has affirmed the ICR of “a-” as well as all existing debt ratings of SLF.

A.M. Best also has affirmed the FSR of A- (Excellent) and ICR of “a-” of Independence Life & Annuity Company (Wilmington, DE) as well as the FSR of B++ (Good) and ICR of “bbb+” of Professional Insurance Company (Dallas, TX). The outlook for all ratings is stable. (See link below for a detailed listing of the companies and ratings.)

The rating affirmations reflect SLF’s strong business profile, anchored by leading positions in its core Canadian markets—group benefits, group pension and individual insurance—and complemented by its established presence in the U.S. group insurance and voluntary benefits space. SLF’s diversified revenue stream is further enhanced by its well-performing asset management business, MFS Investment Management (MFS) and its expanding footprint in Asia. Additionally, the organization maintains sound risk-adjusted capitalization, strong financial flexibility and a sophisticated enterprise risk management process. Over the last few years, this framework has yielded action plans to reduce the volatility of SLF’s results including selling the U.S. annuity business and de-emphasizing universal life and segregated fund sales in Canada, which A.M. Best views positively.

SLF’s sales and earnings trends are favorable and continue to foster the group’s excellent financial flexibility. With a debt-to-capital ratio (including preferred shares) below 30% and interest coverage of five to six times, SLF is within A.M. Best’s guidelines for its current ratings.

While SLF’s re-positioned U.S. operations focus is on markets and businesses that lack sensitivity to interest rates and equity market fluctuations, significant competition remains from established players in these markets as well as in Canada and Asia. As the organization continues to realign its new core business strategies, SLF’s results could remain subject to new business strain and lower investment income. Additionally, the company retains exposure to real estate-linked assets through its investments in commercial mortgage loans, direct real estate and residential and commercial mortgage-backed securities and may be subject to significant losses should real estate market fundamentals deteriorate. A.M. Best notes that a large portion of SLF’s real estate portfolio is underwritten in Canada, where it typically performs better than similar investments in the United States. While reducing volatility, the sale of the U.S. annuity and certain life businesses will reduce overall revenue and earnings diversification, making SLF more dependent on cash flows from its Canadian, MFS and growing Asian business segments.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs