Sun Life to double business in China

Sun Life Financial Inc. will double its business in China in the next three years, according to chief executive Donald Stewart.
Stewart says the Canadian-based insurance company will need to grow at about 23% per year in order to double in the Chinese market over the next three years.
Insurers including American International Group Inc. and Manulife Financial Corp. are selling more policies in China forcing Sun Life to lose market share.
During the first eight months of 2005, Sun Life’s venture with China Everbright Group saw 106 million yuan ($13 million) premium income a 30 million yuan decrease over only a years time.
International insurers are vying to expand in the nation of
China is being entered by insurers from coast to coast as it is currently in a state of economic growth. In addition, the reduction of government welfare benefits is encouraging its 1.3 billion people to spend more on protection and investment products.
Sun Life Everbright Life Insurance Co., based in Tianjin, has less than 0.1% of China’s life insurance market.
Toronto-based Sun Life it will initiate business plans in Shanghai and Nanjing and sell policies to companies in the country. This investment is aided by a figure of $300 million ($256 million) dedicated to the Asian and Chinese markets.
“We would be more likely to concentrate on India and China because the demand and competition are huge in both markets,” Stewart says.
In addition to these endeavors, Sun may set up a fund management venture through its subsidiary MFS Investment Management in China. It is also looking at similar opportunities in South Korea.