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Sun Life (SLF) Unit Makes Bancassurance Partnership in Vietnam

Sun Life Financial’s SLF subsidiary Sun Life Vietnam Insurance Company Limited and Asia Commercial Joint Stock Bank (ABC) have formed a 15-year exclusive bancassurance partnership in Vietnam. The partnership will be launched on Jan 1, 2021.

The agreement combines Asia Commercial Joint Stock Bank’s extensive distribution network of 371 branches and Sun Life Vietnam's competitive and comprehensive life insurance solutions. Bancassurance means selling insurance product through banks. Thus, ACB's fast-growing base of more than 3.6 million customers can benefit from Sun Life Vietnam's compelling life insurance solutions. Last November, Sun Life Vietnam and Tien Phong Commercial Bank (TPBank) had formed a 15-year bancassurance partnership in Vietnam.

Sun Life is aggressively seeking to expand its international business. It is focusing on the emerging economies of Asia that are expected to provide higher return and growth than the North American markets. The company has a strong presence in China, Philippines, India, Hong Kong and Indonesia, and has also forayed into Malaysia and Vietnam, taking the count to seven markets in which it has a presence.

Sun Life envisions being a leader in Asia through distribution excellence in higher growth markets and identifies bancassurance as a high-growth distribution channel in Vietnam. Thus, these partnerships are a strategic fit for this Zacks Rank #1 (Strong Buy) leading Canadian life insurer. Sun Life Vietnam reported sales growth of 47% over the 12 months ending Sep 30, 2020.

Shares of Sun Life have lost 0.6% year to date compared with the industry’s decline of 15%. Sun Life’s focus to strengthen Asian presence, expand global asset management business, favorable business mix, strategic acquisitions and solid capital position should help shares bounce back.

Other Stocks to Consider

Investors interested in the insurance space can look at Brighthouse Financial BHF, Manulife Financial MFC and Primerica PRI, each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank.

Brighthouse delivered an earnings surprise of 26.59% in the last reported quarter.

Manulife delivered an earnings surprise of 5.77% in the last reported quarter.

Primerica delivered an earnings surprise of 16.81% in the last reported quarter.

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Manulife Financial Corp (MFC): Free Stock Analysis Report
Sun Life Financial Inc. (SLF): Free Stock Analysis Report
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Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report
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