Sun Life Financial Inc (SLF.TO)

The extended low interest rate from 2008-2020 hurt insurance companies when they used the bond market to fund their very long-tail liabilities can can push up the risk curve on their investments. The lifecos are in good shape, though, and will benefit from lower rates. They continue to pay dividends, grow well and trade at decent multiples. SLF outperforms MFC.

The extended low interest rate from 2008-2020 hurt insurance companies when they used the bond market to fund their very long-tail liabilities can can push up the risk curve on their investments. The lifecos are in good shape, though, and will benefit from lower rates. They continue to pay dividends, grow well and trade at decent multiples. SLF outperforms MFC.

Interest rates going down is, theoretically, bad for the insurance business but good for dividends. Yield's around 4%, with about 10% stock appreciation. Counting on nice dividend increases. Normally regarded as one of the best-run; overshadowed by turnaround in MFC. 

Probably a solid long-term hold, attractive dividend yield. Overhang has been poor performance of its asset management group in the US. Operations in Asia, growth area. Stable. Dominance in NA, growing internationally.

He has a large personal holding but his funds don't. His company also owns Manulife.

Expecting a share price around $75. Would buy stock around $60. Would recommend a small position. Falling interest rates will not benefit life insurance companies. Overall, would recommend a small position in portfolio. 

Insurance an attractive sector. Rising interest rates good for the business. However, Manulife is a better option. Sunlife under performing compared to others. Would not recommend buying at this time. 

Current valuation is high - but overall is a quality company. ROE very strong - generous dividend (~4%). Would recommend buying - is a well managed company. Excellent management team. Owns shares, and would recommend buying. 

MFC is the name in the Insurance space that keeps working. A few years ago, it was like that cough syrup -- doesn't taste good, but it works. Insurance companies are set to outperform banks. MFC is #1, SLF #2, POW #3.

Great quality company. Revenue: Canada (53%), US (17%), Asia (17%), Europe (10%). Shares moving higher. China opening post-Covid driving business, higher EPS, and higher share price. No hesitation to buy and hold.

Good technical strength, 200-day MA still moving higher as is the price. Hitting 52-week highs. $74 is the all-time high, above that would be a breakout. Well diversified. Yield is 4.34%. Good spot to be, but he own MFC instead. 

Some of the insurers are outperforming the banks because they're a bit more levered to falling interest rates, fewer credit concerns and loan-loss provisions. Likes banks, too.

Banks are a tougher story due to capital ratios and inability to grow. Instead of a bank, look to MFC or SLF.

Insurance companies typically do better, financial, in times of rising rates. This is because their surplus cash earns more. But, they also pay dividends, and their stocks were hit fairly hard regardless when rates rose. So, we would still expect some tailwinds for the sector as investor re-value solid dividends from both insurers AND banks. 
Unlock Premium - Try 5i Free

His metrics flashed sell recently. $51.30 is his target, or 18.5% downside. In no rush to buy this or any insurance company now. Wait for cheaper shares.

Likes their ROE which will grow above target, their 3% buyback and strong capital position of $2 billion cash. Less risky than its peers.