India Rising: Implications for Canadian India Rising: Implications for Canadian Business and Public PolicyBusiness and Public Policy

Sun Life’s India StorySun Life’s India Story

Gary M. ComerfordGary M. ComerfordSenior Vice President, International DistributionSenior Vice President, International Distribution

Public Policy ForumPublic Policy ForumDecember 10, 2008December 10, 2008

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QuoteQuote

“India is an elephant that has begun to lumber and move ahead. It will never have speed, but it will

always have stamina”

…Gurcharan Das, “India Unbound”

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SLF Operations in Key International MarketsSLF Operations in Key International Markets

CanadaCanada

IrelandIreland JapanJapan

ChinaChina

United United StatesStates

Hong KongHong Kong

IndonesiaIndonesia

BermudaBermuda

United United KingdomKingdom

PhilippinesPhilippines

IndiaIndia

SingaporeSingapore

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India: A Significant OpportunityIndia: A Significant Opportunity

Fourth largest economy in the world (PPP)

GDP growth of 4% - 9%

Population of over one billion

Growing well-educated, confident middle class

English widely used

Common Law legal system

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GDP Annual Percent ChangeGDP Annual Percent Change

6.0%

6.9%

5.7%

3.9%

4.6%

6.9%

7.9%

9.1%

9.8%9.3%

7.9%

6.9%

7.7% 8.0% 8.0% 8.0%

0%

2%

4%

6%

8%

10%

12%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Series1 Series2Actual Forecast

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BSE (3 year daily closing)BSE (3 year daily closing)

20873.33 (Jan08-08)

8494.29 (Nov11-05)9839.69 (Nov11-08)

0

5000

10000

15000

20000

25000

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

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India Emerging: India Emerging: Economic Growth EngineEconomic Growth Engine

0

2

4

6

8

10

12G

DP

Gro

wth

2003 2007

ServicesIndustryAgriculture

7.1 7.4

10.0 10.7

2.6

8.9

Economic Growth by Sector

Source: EIU Limited 2008

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India Emerging: India Emerging: Revving up for the FutureRevving up for the Future

negligibleImpoverished (less than $1,000)

Struggling ($1,000 to $3,000)

Consuming ($3,000 to $10,000)

1995 2000 2005 2010

Affluent (More than $10,000)

Income (USD)

0.6

12

105

0.8

51

17

3

126

44

147

10

97

47116

8

Source: EIU Citigroup Research, India

Households (millions)

Burgeoning Consumer Markets

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India’s Demographic AdvantageIndia’s Demographic Advantage

Burgeoning Consumer Markets … driven, in part, by demographics

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Before you can ride the elephant,you first must get on !

India Emerging…India Emerging…

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Sun Life Financial: Our HistorySun Life Financial: Our History

May 23, 1892 – Sun Life Financial appoints first agent

1956 - Sun Life Financial largest foreign insurer, exits India

1999 Sun Life Financial re-enters India through Joint Venture

2001 Sun Life Financial re-enters Indian insurance market

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Financial Services

Asset Management

Life Insurance

Distribution

Sun Life Financial: Our Strategy Sun Life Financial: Our Strategy

Top Three Positioning

Consumer Driven Distribution

Product Leadership

Strategic Alliance with AV Birla Group

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Birla Sun Life Asset Management CompanyBirla Sun Life Asset Management Company

Cdn $

May 1999 Dec 2007

400 million

9.5 billion

Total Assets Under Management

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Sales Annualized PremiumsSales Annualized Premiums

3151310

46266074

7026

9532

FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 YTD Dec'07

CAGR in FY 08 – 104%

12223

(Rs mn)

Birla Sun Life

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Ten Lessons Learned … Ten Lessons Learned … The Hard WayThe Hard Way

1. Pursue superior opportunities only.

2. Learn to “play” with your partner early.

3. Ownership decision – Mission critical.

4. Constant oversight by senior management of joint venture.

5. Get the right CEO / Managing Director.

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6 Sales and market accountability held locally.

7 Agree on the capital burn rate at the outset.

8 Day One: Establish standards.

9 The deal you negotiate is not the deal you live with.

10 Focus. Focus. Focus.

Ten Lessons Learned … Ten Lessons Learned … The Hard WayThe Hard Way

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Thank you.