Major insurer is making the shift from publicly traded bonds to create an alternative, yield-oriented strategy
Sun Life Financial Inc.’s Steve Peacher said he’ll seek to invest funds into areas other than publicly traded bonds as Deutsche Bank AG’s Randy Brown joins the firm to oversee the insurer’s $135 billion (US $101 billion) portfolio.
“Over the next couple years, it’s very likely that you’re going to see us make moves to continue to expand the scope of Sun Life Investment Management. That could be acquisitions, that could be organic growth, but we want to grow it,” Peacher, president of the unit, told Bloomberg News. “We’re looking to expand our menu of offerings in what I will call alternative, yield-oriented strategy.”
Sun Life Chief Executive Officer Dean Connor has been building up asset-management operations at Canada’s third-largest life insurer, announcing deals to acquire Prime Advisors and Ryan Labs Inc. Peacher said the investment businesses could grow through private-market wagers, citing infrastructure equity as an example.
The insurer said that it hired Brown as chief investment officer from Deutsche Bank, where he ran a unit managing assets for insurers. The insights he gained at the bank will be beneficial in helping Toronto-based Sun Life expand its capabilities, said Peacher.
“He’s got broad experience, and there’s things he’s seen other insurance companies doing that we’re not doing at Sun Life that would fit with what we do and our risk-return,” said Peacher. “He’ll bring just a broad set of experiences.”
The insurer has been on a shopping spree as of late both at home and abroad, acquiring U.S. insurer Assurant, Bentall Kennedy Group, and Prime Advisors earlier in the year, and is considering increasing its stake in Birla Sun Life Insurance in India.
