india rising: implications for canadian business and public policy sun life’s india story gary m....
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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