Profit within reach for Sun Life Everbright

Sun Life Everbright Life Insurance Co, which began life as the country's first joint-venture insurer, aims to be profitable next year after about a decade of operations, top executives said.

"We are going to reach the break-even point next year," said Dean Connor, president and chief executive officer of Canada's Sun Life Financial Inc, a partner in the venture.

"Our target in China is to keep the business growing and grow it profitably."

Sun Life Everbright Life's first-half premium income totaled 5.69 billion yuan ($932 million). The full-year figure is expected to rise 20 percent to 10 billion yuan, said Connor.

According to the China Insurance Regulatory Commission, life insurers' first-half premiums were up 9 percent, while those of non-life insurers went up 16.6 percent.

Sun Life Everbright Life was established in 2002 as a 50-50 joint venture between Canada's Sun Life and China Everbright (Group) Co Ltd.

In 2010, Sun Life cut its stake in the JV to 24.99 percent, turning it into a local insurer - the first such instance in the country.

Meanwhile, the insurer brought in China North Industries Group Corp and Anshan Iron and Steel Group Corp as new stakeholders of the company.

"The stake reshuffle makes us more 'nimble' in the market," said Connor, referring to easier procedures as a local insurer for establishing an asset management company and more rapid branch expansion.

The company now has 127 branches across 19 provinces.

According to the CIRC, foreign life insurers' premium income was 30.5 billion yuan in the first half, accounting for 4.9 percent of the market.

"Getting a smaller piece of a bigger pie is better than the other way around," said Kevin Strain, president of Sun Life Financial Asia. "Moreover, our partnership with Everbright was even closer after the reshuffle."

According to Strain, being a local insurer also helps attract talented staff, who are more willing to join a fast-growing company.

Sun Life plans to focus on its cooperation with Everbright Group - Sun Life Everbright Life Insurance Co and Sun Life Everbright Asset Management Co.

Although the China (Shanghai) Pilot Free Trade Zone allows foreign insurers to set up a wholly owned health insurance company, Sun Life has no such plans in the short term.

"Our next focus is the pension business," said Connor.

Connor said that a growing middle class needs reliable lifetime financial protection, to prepare for a comfortable and secure retirement, cover medical expenses, protect loved ones and finance the education of children.