Review of Sun Life Financial Inc.

APR 03, 2025 - There has been a transition in SLF’s business model from a pure insurance company into a dual asset manager insurance company. SLF has a strong financial profile and is a highly profitable business in terms of Return on Equity (ROE). SLF has a clear strategy to enhance operational efficiency, market leadership and shareholder value over time. The company recently raised dividends and repurchased shares at a more aggressive pace in years, which indicates management thinks the current valuation is attractive. SLF’s business model is highly durable and sustainable, and the company’s share price tends to hold up well amid a volatile market. We think SLF is executing well and the long-term thesis in SLF as a high-quality dividend grower across the economic cycle remains unchanged. We are maintaining our rating at “A-“.