At a meeting with investors senior management of Sun Life Financial Services of Canada Inc. today outlined the company’s growth strategy and reviewed its earnings prospects for 2003.

Canada’s largest insurer expressed confidence in its ability to achieve double digit earnings growth given stable capital markets. It expects the growth to be driven by the integration of recent acquisitions, strong organic growth in its core businesses, and a sophisticated approach to risk management.

Sun Life says it expects its 2003 performance to receive a strong boost from the approximately $270 million in total cost savings to be achieved by year end as Clarica Life Insurance Co. is fully integrated into Sun Life Financial.

“Today, just five months after closing this transaction, we are already more than half way to our final cost savings targets of $270 million,” said Bob Astley, president of Sun Life Financial Canada.

Commenting on the outlook for the balance of 2002 and into 2003 Chief Financial Officer Paul Derksen said, “Despite challenges from the decline in capital markets, we expect operating (earnings per share) in 2002 to grow by approximately 12%. If equity market indices repeat their 2002 averages, we expect to achieve similar EPS growth in 2003.”

Sun Life was also optimistic about its sales prospects in Asia. New ventures in both India and China were launched after a two-year strategic review.

“Our marketing success in Asia has been so strong that Asian sales may surpass total Sun Life Financial Canadian insurance sales as early as 2003,” said Douglas Henck, executive vice-president of Asian operations.

Currently, Asia provides 2% of Sun Life’s earnings.