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Sun Life Financial (SLF) Retains Medium-Term Financial Goals
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Sun Life Financial Inc. (SLF - Free Report) recently announced that it had retained its medium-term financial objectives. The company still expects earnings per share to increase 8–10%. While return on equity is estimated between 12% and 14%, dividend payout ratio is likely to be 40–50% of the underlying net income.
The third-largest insurer in Canada expects to achieve the target through its organic and margin improvement initiatives as well as growth in newly acquired businesses.
Sun Life Financial remains focused on expanding the U.S. Group margins to a range of 5–6% in the medium term. The company is also on track to integrate and deliver on the synergies of its employee benefits acquisition.
Sun Life is aggressively trying to improve its Global Asset Management Business, which has been witnessing growth in its asset base over the past many quarters. Sun Life targets Sun Life Investment Management asset under management of approximately $100 billion over the next five years.
Sun Life is also seeking to expand its international business. Hence, it is focusing on the emerging economies of Asia that are expected to provide higher return and growth than the North American markets. This apart, Sun Life is turnings its attention toward products that require less capital and offer more predictable earnings, such as mutual funds and group benefits. The company is also growing its voluntary benefits business (launched new products in this line) and targeting a place among the top five players. Dean Connor, President and Chief Executive Officer stated, “On the next leg of our journey, we've set a goal to become one the best insurance and asset management companies in the world.”
Sun Life Financial has delivered positive surprises in the last three quarters with an average beat of 12.7%. Sun Life Financial’s well-diversified business profile positions it for long-term growth. The expected long-term earnings growth rate is currently pegged at 7%.
Stocks that Warrant a Look
Investors interested in insurance industry may consider stocks like Health Insurance Innovations, Inc. , American Financial Group, Inc. (AFG - Free Report) , and Everest Re Group, Ltd. .
Health Insurance Innovations, a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the United States, has delivered positive surprise in the last four quarters with an average beat of 277.78%.
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
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Sun Life Financial (SLF) Retains Medium-Term Financial Goals
Sun Life Financial Inc. (SLF - Free Report) recently announced that it had retained its medium-term financial objectives. The company still expects earnings per share to increase 8–10%. While return on equity is estimated between 12% and 14%, dividend payout ratio is likely to be 40–50% of the underlying net income.
The third-largest insurer in Canada expects to achieve the target through its organic and margin improvement initiatives as well as growth in newly acquired businesses.
Sun Life Financial remains focused on expanding the U.S. Group margins to a range of 5–6% in the medium term. The company is also on track to integrate and deliver on the synergies of its employee benefits acquisition.
Sun Life is aggressively trying to improve its Global Asset Management Business, which has been witnessing growth in its asset base over the past many quarters. Sun Life targets Sun Life Investment Management asset under management of approximately $100 billion over the next five years.
Sun Life is also seeking to expand its international business. Hence, it is focusing on the emerging economies of Asia that are expected to provide higher return and growth than the North American markets. This apart, Sun Life is turnings its attention toward products that require less capital and offer more predictable earnings, such as mutual funds and group benefits. The company is also growing its voluntary benefits business (launched new products in this line) and targeting a place among the top five players. Dean Connor, President and Chief Executive Officer stated, “On the next leg of our journey, we've set a goal to become one the best insurance and asset management companies in the world.”
Sun Life Financial has delivered positive surprises in the last three quarters with an average beat of 12.7%. Sun Life Financial’s well-diversified business profile positions it for long-term growth. The expected long-term earnings growth rate is currently pegged at 7%.
Stocks that Warrant a Look
Investors interested in insurance industry may consider stocks like Health Insurance Innovations, Inc. , American Financial Group, Inc. (AFG - Free Report) , and Everest Re Group, Ltd. .
Health Insurance Innovations, a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the United States, has delivered positive surprise in the last four quarters with an average beat of 277.78%.
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>