Sunlife’s Asia business grew individual insurance sales 9% in the third quarter on strong demand in Hong Kong, India and Malaysia. However, tougher competition in Hong Kong cut the value of new business written.
Underlying net income in Asia rose 7% to C$226 million, driven by sales momentum, growth in in-force business, favourable credit experience and lower expenses. That was partly offset by lower contributions from joint ventures, less favourable mortality in its high-net-worth business, and lower fee income as Hong Kong’s pension administration moved to the centralised eMPF platform.
Reported net income in Asia fell 66% to C$123 million, reflecting unfavourable assumption changes and the absence of last year’s C$176 million gain from increasing its stake in Hong Kong digital insurer Bowtie.
“Our diversified global strategy delivered robust continued momentum in insurance and wealth led by Canada and Asia, and new sources of growth in asset management,” said Kevin Strain, president and chief executive of Sunlife.
Individual insurance sales in Asia reached C$935 million. Hong Kong sales rose across all channels, and India and Malaysia grew strongly, mainly through bancassurance. Sales in the Chinese Mainland fell, mainly through the broker channel. Asset management gross flows and wealth sales rose 35% to about C$1 billion, helped by higher Mandatory Provident Fund sales in Hong Kong and higher group fund sales in India.
New business CSM fell to C$280 million from C$322 million, which Sunlife attributed to an increasingly competitive environment, primarily in Hong Kong.
That contrasts with Manulife, which reported this week that its Hong Kong new business CSM rose to C$385 million from C$287 million. The two results suggest a split in Hong Kong’s market between insurers prepared to compete on price and those protecting margins.
During the quarter, Sunlife launched Sun Life Private Wealth, bringing its high-net-worth businesses in Bermuda, Dubai, Hong Kong and Singapore onto one platform for cross-border wealth planning and intergenerational wealth transfer.
In Indonesia, it upgraded automated claims adjudication for medical claims, increasing straight-through processing by nearly 20% within two months. It also launched an AI-powered productivity assistant for advisors across the region.
Group underlying net income rose 9% to C$1,146 million, while reported net income fell 29% to C$785 million. Sunlife raised its quarterly dividend to C$1.00 from C$0.96.
For agents and brokers in Hong Kong, the diverging results from Sunlife and Manulife point to a highly competitive market where pricing and commission terms may become more attractive as insurers fight for share. Sunlife’s growth in India and Malaysia through bancassurance shows the bank channel remains central in those markets, while its weaker broker sales in the Chinese Mainland suggest independent distribution there is under pressure.
