Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Pacific Rim Actuaries (February 2003)
21 slides from Sun Life Financial's conference presentation, February 2003
Slide 1: International Mergers and Acquisitions: India - A Case Study
International Mergers and Acquisitions India - A Case Study Gary Comerford Vice-President, International and General Manager India
Slide 2: Lessons Learned Internationally… from a struggling practitioner
Lessons Learned Lessons Learned Internationally… from a struggling practitioner Pacific Rim Actuaries
Slide 3: Sun Life Financial's World Wide Operations
Sun Life Financial’s World Wide Operations IRELAND CANADA CHINA U.K. HONG KONG UNITED STATES BERMUDA INDIA PHILIPPINES INDONESIA CHILE Pacific Rim Actuaries
Slide 4: Diversified Earnings Sources
Diversified Earnings* Sources U.K. Asia 14% 2% MFS 11% Canada 47% U.S. 31% *Q3/02 earnings excluding “other” and adjusted for special items Pacific Rim Actuaries
Slide 5: Sun Tzu, The Art of War quote
“He who occupies the field of battle first, and awaits his enemy is at ease, and he who comes later to the scene and rushes into the fight is weary” Sun Tzu The Art of War Pacific Rim Actuaries
Slide 6: The World Is a Big Place: Focus, Focus, Focus
The World Is a Big Place “Focus, Focus, Focus” Pacific Rim Actuaries
Slide 7: Sun Life in India
Sun Life in India • May 23, 1892 - Ira B. Thayer appoints first agent • 1898 - Robertson Macauley visits India • 1905 - Canada Building completed • 1956 - Sun Life largest foreign insurer • 1999 Sun Life re-enters India Pacific Rim Actuaries
Slide 8: Why India?
Why India? • Fifth largest economy in the world • Population approximately one billion • English widely used • Growing middle class 50 - 200 million • Common Law legal system • GDP growth projections 4 - 6% • 100 million in force Life policies Pacific Rim Actuaries
Slide 9: Our Strategy
Our Strategy • Financial Services • Significant Player • Multiple Distribution • Product/Service Leadership • Partnership Pacific Rim Actuaries
Slide 10: Our Partner
Our Partner • A.V. Birla Group • Operating in India since 1947 • Second largest industrial house • Operates in 15 countries / 140,000 employees • Annual Revenue US$5 billion Pacific Rim Actuaries
Slide 11: Company Structure
Company Structure Sun Life of Canada Sun Life (India) Sun Life (India) Sun Life (India) Sun Life (India) Life AMC Investment Inc. Securities Investment Inc. Distribution Investment Inc. Insurance Investment Inc. 50% 50% 49% 50.01% 26% Birla Sun Life Birla Sun Life Birla Sun Life Birla Sun Life Birla
Slide 12: Birla Sun Life Asset Management
Birla Sun Life Asset Management AUM Million CAD$ Sun Life acquires interest in AMC 2031 Q1 1376 14071485 1636 Q2 1293 13181238 1170 12491219 768 1224 1120 Q3 458 536 Q4 1999 2000 2001 2002 • Top four in market share • Over 325,000 customers • Well positioned for pension reform • Consolidation of ind
Slide 13: Birla Sun Life Insurance
Birla Sun Life Insurance • Individual and Group lines • Multiple Channels 9 Direct sales force 9 Alternate channels • Multiple locations 9 17 cities 9 24 branches • “Modern” unit link product design • Industry leader in creating compliant culture Pacific Rim Actuaries
Slide 14: BSLI Competitor Information
BSLI Competitor Information • Market Share figures as at December 2002 LIC 91.19% ICICI Prudential 3.37% Birla Sun Life Insurance 1.56% Max NY 1.40% Tata AIG 1.18% HDFC Standard 1.10% Allianz Bajaj 0.56% Pacific Rim Actuaries
Slide 15: Lessons Learned
Lessons Learned • Focus, focus, focus • CEO sign off, support and public commitment is the most important key to success • Social, political and economic upheaval is normal • Marshalling scarce resources and building supply lines is tough • Friendly “feet on the street” is essential Pacific Rim Actu
Slide 16: Deal Making Is a Contact Sport, and You Improve With Practice
Deal Making Is a Contact Sport, and You Improve With Practice 10 3 1 • Speed works to the advantage only of merchant bankers and shareholders anxious to sell • The deal you negotiate is different from the deal you live • Due diligence is an art as well as a science • Go have a smoke • Continuity of
Slide 17: It Takes Four Times Longer Than You Think, to Do the Deal
It Takes Four Times Longer Than You Think, to Do the Deal • Nothing happens over the phone, only face time counts • When you think you have a deal…negotiations are likely just starting • Authority of lead negotiator critical • Build a plan together, to see if you like each other Pacific Rim Actuarie
Slide 18: Do Many Deals, Avoid the Blockbuster
Do Many Deals Avoid the Blockbuster • Small deals are just as much work as big deals • Don’t bet the company on any single deal • Some deals will fail. Get over it and move on • Risk not always measured by size of deal alone Pacific Rim Actuaries
Slide 19: Cultural Insensitivity is Terminal
Cultural Insensitivity is Terminal • Culture is a big deal, respect this fact but don’t let it drive your business • Cultural sensitivity does not mean a different business ethic • Cultural training is a must foundation • The emergence of an international cultural code Pacific Rim Actuaries
Slide 20: Strategy May Be Sexy... But the Devil Is in the Detail
Strategy May Be Sexy... But the Devil Is in the Detail • The Four C’s of Child Care Critical Constant Continuing Cash Care Care Care Care Merger and Acquisition Life Cycle Pacific Rim Actuaries
Slide 21: Challenges Ahead
Challenges Ahead • Meeting Revenue Targets • Finding/Retaining the Right People • Creating a Compliant Culture • Taking Advantage of Synergies - e.g. Shared Services • Managing our Partner Relationship • To be a Market Leader Pacific Rim Actuaries
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