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Sun Life Looks to Boost Stake in India’s Life Insurance Market

December 1st, 2015  |  Canadian Business

Sun Life Financial is a Canadian insurer looking beyond our borders. Sun Life has been involved in a life insurance venture in India with Aditya Birla Group, and it is ready to increase its stake in the joint venture from 26% to 49% to take advantage of the burgeoning life insurance market in India, according to The Wall Street Journal.

Sun Life has been partnering with Aditya Birla on the Birla Sun Life Insurance Co. In order to increase the ownership position, Sun Life is paying CAD 340 million. This is part of Sun Life’s efforts to expand its presence in Asia, looking for new markets. Sun Life also has a joint life insurance venture in Vietnam, as well as another joint venture with Aditya Birla for asset management.

According to The Wall Street Journal, Sun Life recognizes the headwinds in the Canadian market. Additionally, in countries like Canada there isn’t as much room for growth in the areas of asset management and insurance. Developing nations in Asia offer a large population pool of those entering middle class lifestyles and in need of financial services. This provides companies like Sun Life the chance to expand to new markets. Sun Life is hoping to grow its Sun Life Asia efforts through joint ventures like those in India and Vietnam.

Sun Life hopes that the deal for increased stake in its Indian joint venture will be closed during the first quarter of 2016, and that the result will be another cent (Canadian) per share to its 2016 earnings.

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