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Sun Life Financial (SLF) and its Units Rated by A.M. Best
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Sun Life Financial Inc. (SLF - Free Report) and its affiliates recently received rating action from credit rating giant, A.M. Best. The rating agency affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-”of Sun Life Assurance Company of Canada and Sun Life and Health Insurance Company (U.S.).
At the same time, the rating giant affirmed the Long-Term ICR of “a-”and existing Long-Term Issue Credit Ratings (Long-Term IR) of the parent company, Sun Life Financial.
In addition, the rating agency affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Independence Life and Annuity Company. It also rendered the FSR of B++ (Good) and Long-Term ICR of “bbb+” of Professional Insurance Company. The outlook of the credit ratings remained stable.
The ratings reflect the life insurer’s robust business portfolio, leading positions in core Canadian markets – group life and health benefits, group pension and individual insurance. Moreover, Sun Life Financial has again shifted focus to the U.S. group insurance and voluntary benefits space owing to the purchase of the employee benefits business of Assurant, Inc. (AIZ - Free Report) in Mar 2016. The rating affirmations take this factor into consideration as well.
Also, Sun Life Financial’s strong and stable risk-adjusted capitalization, solid financial flexibility and advanced enterprise risk management process, as well as operational diversification have been viewed positively by the rating agency. These, in turn, have resulted in portfolio de-risking and reduced exposure to equity market volatility due to the focus on less capital-intensive businesses.
Notably, the life insurer’s favorable sales and earnings trends will continue to strengthen its outstanding financial flexibility. Sun Life Financial possesses a debt-to-capital ratio (including preferred shares) of about 25% and interest coverage of nine to 10 times. Thus, the life insurer is well within A.M. Best’s guidelines for its current ratings.
Interestingly, shares of Sun Life Financial (25.1%) have significantly outperformed the Zacks-categorized Life Insurance industry (-0.5%), year to date. Solid bottom-line growth due to strategic investments, strong investment management business, and thriving business in Asia (primarily in higher growth markets) contributed to the outperformance. Plus, a strong capital position has not only enhanced the company’s shareholder value but also enabled the life insurer to invest in prudent initiatives, which in turn, has accelerated growth.
Sun Life Financial carries a Zacks Rank #3 (Hold). Moreover, rating affirmations or upgrades from credit rating agencies play an important role in retaining investors’ confidence in the stock as well as maintaining credit worthiness in the market. Hence, it is expected that such ratings will help the company write more business, going forward.
Stocks to Consider
Some better-ranked stocks from this space are Health Insurance Innovations, Inc. and Primerica, Inc. (PRI - Free Report) .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Primerica distributes financial products to middle-income households in the U.S. and Canada. The company delivered positive surprises all of the last four quarters with an average beat of 6.37%. The company holds a Zacks Rank #2 (Buy).
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Sun Life Financial (SLF) and its Units Rated by A.M. Best
Sun Life Financial Inc. (SLF - Free Report) and its affiliates recently received rating action from credit rating giant, A.M. Best. The rating agency affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-”of Sun Life Assurance Company of Canada and Sun Life and Health Insurance Company (U.S.).
At the same time, the rating giant affirmed the Long-Term ICR of “a-”and existing Long-Term Issue Credit Ratings (Long-Term IR) of the parent company, Sun Life Financial.
In addition, the rating agency affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Independence Life and Annuity Company. It also rendered the FSR of B++ (Good) and Long-Term ICR of “bbb+” of Professional Insurance Company. The outlook of the credit ratings remained stable.
The ratings reflect the life insurer’s robust business portfolio, leading positions in core Canadian markets – group life and health benefits, group pension and individual insurance. Moreover, Sun Life Financial has again shifted focus to the U.S. group insurance and voluntary benefits space owing to the purchase of the employee benefits business of Assurant, Inc. (AIZ - Free Report) in Mar 2016. The rating affirmations take this factor into consideration as well.
Also, Sun Life Financial’s strong and stable risk-adjusted capitalization, solid financial flexibility and advanced enterprise risk management process, as well as operational diversification have been viewed positively by the rating agency. These, in turn, have resulted in portfolio de-risking and reduced exposure to equity market volatility due to the focus on less capital-intensive businesses.
Notably, the life insurer’s favorable sales and earnings trends will continue to strengthen its outstanding financial flexibility. Sun Life Financial possesses a debt-to-capital ratio (including preferred shares) of about 25% and interest coverage of nine to 10 times. Thus, the life insurer is well within A.M. Best’s guidelines for its current ratings.
Interestingly, shares of Sun Life Financial (25.1%) have significantly outperformed the Zacks-categorized Life Insurance industry (-0.5%), year to date. Solid bottom-line growth due to strategic investments, strong investment management business, and thriving business in Asia (primarily in higher growth markets) contributed to the outperformance. Plus, a strong capital position has not only enhanced the company’s shareholder value but also enabled the life insurer to invest in prudent initiatives, which in turn, has accelerated growth.
Sun Life Financial carries a Zacks Rank #3 (Hold). Moreover, rating affirmations or upgrades from credit rating agencies play an important role in retaining investors’ confidence in the stock as well as maintaining credit worthiness in the market. Hence, it is expected that such ratings will help the company write more business, going forward.
Stocks to Consider
Some better-ranked stocks from this space are Health Insurance Innovations, Inc. and Primerica, Inc. (PRI - Free Report) .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Primerica distributes financial products to middle-income households in the U.S. and Canada. The company delivered positive surprises all of the last four quarters with an average beat of 6.37%. The company holds a Zacks Rank #2 (Buy).
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>