Sun Life Financial at Scotiabank’s 27th annual financials summit: growth push

On 9 September 2026, Sun Life Financial (SLF) participated in Scotiabank’s 27th Annual Financials Summit to reveal its growth-focused business strategy. CEO Kevin Strain emphasized the company's shift toward a balanced mix of earnings, highlighting its strong performance in key markets, consistent dividend growth, and rising scale. However, he acknowledged challenges in the U.S. benefits business and public equity active management.

Sun Life reported a return on equity of 19.1%, slightly above its medium-term goal of 20% plus, and remains on track to achieve its earnings growth target of 10% annually, a return on equity exceeding 20%, and a dividend payout ratio of 40% to 50%. The dividend payout ratio of 40% to 50% could potentially result in dividend growth of about 10% per year.

The company's market capitalization stands at $44.3 billion, and an InvestingPro analysis suggests that the stock is undervalued, featured on the platform's most undervalued stocks list.

Sun Life's asset management business, which now accounts for around 35% of the company, is working towards achieving a more even split between insurance and asset management. The company is also building a USD 200 billion alternatives platform and expects further growth through partnerships and organic expansion. Sun Life expects to gain additional assets from its Wilton Re transaction, which is valued at approximately USD 10 billion.

In terms of U.S. operations, Sun Life's U.S. stop-loss business remains profitable despite a weak fourth quarter in 2024. The company raised prices by about 16% in both the 2024-2025 and 2025-2026 renewal periods, demonstrating its pricing power to offset medical inflation and rising incident rates. The company has also shifted focus from lower-margin public programs in its U.S. dental business to commercial dental plans. Sun Life is targeting acceptable and durable margins in its U.S. dental business.