Sun Life may be known for insurance—but under CEO Kevin Strain, it's become a $1.5 trillion force in global asset management. In this episode of In the Money with Amber Kanwar, we sit down with Strain to uncover how this 160-year-old Canadian company has transformed into the country’s largest asset manager, now rivaling industry titans like Brookfield.
- Why Sun Life Isn't Just an Insurance Company Anymore
- Started in Montreal in 1865; went global almost immediately to U.S., Asia, and UK over 130 years ago.
- Historical nugget: Early CEOs took three-month ship voyages to oversee operations along Commonwealth shipping routes (e.g., Singapore, Hong Kong, India).
- Compelling Quote: "If we're doing it 130 years ago, why can't we do it today? We have all this technology that makes it doable. We have all these resources. We have these great people. Can we get out and do more?"
- Operates in 28 countries today; major pivot in last decade toward asset management.
- Built capabilities in public equities, private credit, infrastructure, and real estate; now Canada's largest asset manager.
- Key Insight: Insurers as "original asset managers" holding long-term investments; now extending to third-party investors, creating a "flywheel" of integrated insurance and wealth services.
- Asia: The Growth Engine Powering Sun Life's Future
- Asia is the fastest-growing insurance market globally; Sun Life has deep roots (nearly 130 years in Hong Kong and Philippines).
- When Kevin took over Asia in 2012, earnings stagnant at $100 million annually.
- Focused on "playing to win": Hired top talent, built full distribution channels (agency, bancassurance, brokers, digital).
- Earnings skyrocketed to $200 million per quarter; now a top-five player across eight core markets (Indonesia, Vietnam, Malaysia, India, Singapore, China).
- Compelling Story: Predecessor Dean's advice: "It feels like we're playing not to lose instead of playing to win. And our job is to play to win there."
- On tariffs and U.S. onshoring: Short-term volatility, but Asia's resilience with 4 billion people and intra-regional trade; no trimmed growth prospects.
- Navigating Challenges: Outflows, Real Estate, and U.S. Health Costs
- On MFS ($650B+ arm) facing outflows amid shift to AI stocks and ETFs:
- Honest Take: "If you told me I'd have a 'problem child' that makes close to a billion dollars a year... I'd accept that."
- Attributes to market cycles ($6T U.S. cash on sidelines, MAG7 dominance); diversification helps—SLC (private assets) seeing inflows.
- Expansions into active ETFs and private fixed income.
- In real estate: Amid U.S. commercial pressures, maintains 7.5% long-term return expectation.
- Diversified portfolio (e.g., cold storage, multi-residential thriving); early pivots from retail and office.
- Focus on trends like data centers; not all real estate equal.
- U.S. health: Medical costs rising globally (hospitalizations, new drugs); exposure mostly repricable annually (group benefits, dental, stop-loss).
- Acquisition of Pinnacle Care optimizes care, reduces costs, improves outcomes.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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