Rising Rates Are a Long-Run Positive for Life Insurers; Relaunching Sun Life With a CAD 59 FVE

We are relaunching Sun Life Financial with a fair value estimate of CAD 59 per share after taking a fresh look at it. Our fair value estimate implies that Sun Life is slightly overvalued at current prices. Sun Life provides life insurance, retirement, and asset management products and services to individuals and corporate customers in Canada, the United States, and Asia. Sun Life is one of Canada’s big three Life Insurance companies (the other two are Manulife and Great West Life). We assign a no-moat rating, a stable moat trend, and a standard capital allocation rating to the company.