Sun Life Financial(US:SLF) ZACKSยท2024-07-10 13:10Core Insights - Sun Life Financial Inc. is focusing on strategic investments in Asia, enhancing its asset management business, and scaling up its U.S. operations, which are expected to drive growth [16] - The company has a strong capital position and aims for a medium-term return on equity (ROE) target of 18% while maintaining a 40-50% dividend payout [14] Growth Projections - The Zacks Consensus Estimate for Sun Life's 2024 earnings per share indicates a 3.6% increase from the previous year, with 2025 estimates showing an 8.9% increase [13] - Sun Life's earnings contribution from emerging Asian markets has risen to 21% from 8% over recent years, highlighting the potential for higher returns compared to North American markets [10] Business Tailwinds - Sun Life is investing in private fixed-income, mortgages, and real estate to strengthen its asset management, which is expected to provide higher returns on equity and lower volatility [3] - The company is shifting its growth focus toward products that require lower capital and offer more predictable earnings, aiming to be among the top five players in the voluntary benefits business [18] Headwinds - Sun Life has experienced an average expense increase of 11% over the past few years, primarily due to rising employee costs and other operational expenses [11] - The company is undertaking integration activities expected to yield cost savings of $60 million by 2024, which is crucial for maintaining profitability [11]