Sun Life Financial Inc. SLF recently announced that its subsidiary, Sun Life Vietnam Insurance Company Ltd (Sun Life Vietnam), has entered a 15-year distribution partnership with Tien Phong Commercial Bank (TPBank) in Vietnam. As part of the deal, Sun Life will make a related and initial payment of approximately $100 million, which will be amortized across the 15-year duration of the contract. The amount will be funded with internal resources in addition to ongoing, variable payments depending on the success of the bancassurance deal. This deal is a testament to Sun Life’s interest in the rapidly growing insurance market of Vietnam. According to Vietnam’s Insurance Supervisory Authority (ISA), the insurance industry is targeting a growth rate of 20% in 2019. In order to achieve desired growth, the ISA is working to improve mechanisms and policies to make the insurance market more transparent, safe and efficient and in-line with international standards. Established in 2008, Vietnam based, TPBank, offers most effective banking & finance solutions to the young and active segment.Notably, TPBank has been pioneering modern banking services in Vietnam with advanced technological infrastructure and specialized management. In fact, its initiatives are in sync with its aim of becoming the leading digital bank in the country. Its corporate banking products and services include account management, business loans, guarantee operations, commercial sponsorship, e-banking, treasury services and derivatives, and depository banking/custodian banking. The collaboration provides Sun Life Vietnam with ready access to TPBank’s network of 2.5-million customers. The deal is intended to expand Sun Life’s distribution reach in Vietnam and in turn Asia. The deal is part of Sun Life’s thrust to strengthen distribution capabilities in higher growth markets. Bancassurance is a promising, high-growth distribution channel for life insurance in Vietnam and other emerging Asian markets. With this deal, Sun Life intends to expand its distribution network with world-class partners that share its goal of constant innovation. Shares of this Zacks Rank #3 (Hold) company have gained 36.4% year to date, outperforming the industry’s rallied of 25.8%. Focus on expansion of Asia business and global asset management business, favorable business mix, strategic acquisitions and solid capital position should help the stock sustain momentum.
Stocks to Consider Some better-ranked stocks from the same space are Donegal Group Incorporation ( DGICA Quick Quote DGICA - Free Report) , American Equity Investment Life Holding Company AEL and Primerica Incorporation PRI. While Donegal Group Incorporation and American Equity Investment sport a Zacks Rank #1(Strong Buy), Primerica carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Donegal Group Incorporation provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. The company beat estimates in the trailing four quarters by 248.34%, on average. American Equity Investment Life Holding Company provides life insurance products and services in the United States. The company beat estimates in the trailing four quarters by 47.63%, on average. Primerica Incorporation provides financial products to middle income households in the United States and Canada. The company beat estimates in the trailing four quarters by 4.10%, on average. Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>