Sun Life's annualized premium is expected to reach a new high this year, with stable growth anticipated in the insurance market

Last year, Hong Kong Sun Life Financial recorded an annualized premium equivalent (APE) of HKD 11.9 billion, a year-on-year increase of 46%, setting a new high. CEO Lin Jiayan expects this year's APE to break records again and anticipates optimistic growth in the insurance market this year, although it may not maintain rapid growth due to high market uncertainty and intense competition, thus this year's growth rate will be stable. Increase in Mainland Customers Purchasing USD Policies Drives Premiums Lin Jiayan stated that last year's APE achieved good results mainly due to several factors, including the effectiveness of a multi-channel distribution strategy, with APE from the brokerage channel increasing 1.5 times year-on-year, while APE driven by financial advisors and bancassurance channels rose by 52% and 54%, respectively; high-net-worth clients showed increased interest in insurance products, and the widening interest rate differential between China and the U.S. attracted mainland customers to purchase USD policies. He noted that even if the interest rate differential narrows, there remains a certain gap, which helps the local insurance market achieve stable growth this year. Hong Kong Sun Life will also continue to seek more partners to drive business growth this year. Proportion of Billion-Dollar Policies Increases to 12% He further indicated that last year, new policies from high-net-worth clients grew by 57% year-on-year. The proportion of policyholders with coverage exceeding HKD 100 million increased to about 12%. Hong Kong Sun Life is the first insurance company in Hong Kong to launch an index universal life (IUL) product targeting professional investors (PIs). He mentioned that customer interest in IUL has increased this year, but the definition of PIs remains unclear, which complicates the sales process. Number of Financial Advisors Expected to Exceed 4,000 This Year The number of financial advisors at Hong Kong Sun Life Financial increased from 2,800 at the beginning of last year to 3,600 by the end of last year. Lin Jiayan stated that the current number of financial advisors has further increased to 3,800, and it is expected to exceed 4,000 for the whole year, with a goal of reaching 5,000 next year. Hong Kong Contributes Nearly Half of Asia's Net Income Hong Kong is the growth engine for Sun Life's Asian business. Sun Life Financial Asia President Manjit Singh stated that the contribution of the Asian region to the group's net income is between 20% and 25%, while Hong Kong's contribution to Asia's net income is between 40% and 45%. It is expected that as China and the U.S. continue to cut interest rates, the Hong Kong market will see more capital inflows. Looking ahead to this year's investment market prospects, Sun Life Financial Asia Asset Management President Deng Bin stated that despite the uncertainty in the geopolitical environment, he remains positive about the global market, expecting further interest rate cuts in China and the U.S., and is optimistic about the AI and energy sectors, as they are still in the early stages of development, while also being optimistic about the robotics and healthcare sectors. He pointed out that in the current unstable situation, Asia is part of global growth, and Hong Kong serves as an investment hub, thus attracting more capital inflows