Canadian insurer Sun Life considers raising stake in joint venture as China eases foreign investment curbs

Sun Life Global, the 14th largest listed life insurer globally by market cap, is considering increasing its shareholding in Chinese joint venture Sun Life Everbright Life Insurance, according to chief executive Dean Connor.

The firm, among Canada’s largest public companies, said there were a lot of opportunities for growing the insurance business in China despite intense competition. “We are bullish on China. If we could buy a larger percentage we would like to,” Connor said in an interview. “Ultimately [achieving a shareholding of] 51 per cent, but even going from 25 per cent to 49 or 50 per cent would be nice.”

As China moves to fulfil its promise of opening up its markets to foreign investors, the increased size of Sun Life’s shareholding in Sun Life Everbright will depend on the willingness of its local partners to sell, said Connor.

In 2010, Sun Life cut its shareholding in Sun Life Everbright to 25 per cent, which was repositioned to become a domestic entity so that it could obtain licences for new Chinese cities quickly, in a push for branch expansion. China Everbright Group retained a 50 per cent share, while China North Industries Group and Anshan Iron and Steel Group each acquired a 12.5 per cent stake in the life insurer.

The joint venture has since grown its footprint across the country, obtaining licences for 22 provinces and municipal cities. As a result, growth now means expansion within cities where it operates and less about getting new licences, said Connor.

China unveiled on Thursday a long-anticipated easing of foreign investment curbs in sectors ranging from agriculture to banking, as its trade dispute with the US shows no signs of receding.