Sun Life Financial Inc. is forecasting 10% annual growth in earnings. The insurer made the announcement today as it hosted its Investor Day where management discussed the firm’s strategies for growth.

Senior executives from around the world provided details of their plans to grow their businesses and contribute to Sun Life’s future profitability.

“Rising interest rates and improving equity markets should enhance the performance of Sun Life Financial and all of its businesses,” said Donald Stewart, CEO, in a release.

“Looking forward, we can increase our earnings organically by an average of 10% per year,” chief financial officer Paul Derksen said.

Derksen said that focused plans to grow businesses in Canada, the U.S. and Asia, combined with market improvements of 7-8%, productivity improvements and share repurchases, should increase earnings per share by at least 10% over the medium term. Overall, these improvements, along with share repurchases, could increase return on equity (ROE) by approximately 75 basis points. “Acquisitions, market improvements above the 7-8% range and additional capital management may very well result in ROE growth beyond that,” he said.

Derksen said share repurchases in 2004 amount to over $250 million, or some 6.7 million shares, and are expected to reach $375-400 million by the end of the year. He emphasized that the level of purchase might be more or less depending on conditions in equity capital markets.

Kevin Dougherty, [resident, Sun Life Financial Canada, said that Sun Life Financial is aggressively re-entering the wholesale market where significant growth opportunities exist. He said “we are in the process of signing six MGA agreements and we will add another six before the end of next year. We are also doing the necessary work to get the product line ready with some work completed on Universal Life and work underway on others.”

Dougherty said his organization would grow both the Group Benefits and Group Retirement Services (GRS) market shares.

Robert Salipante, president of Sun Life Financial U.S., said that his organization is placing significant emphasis on restoring the annuity business to a top 10 market position through strengthening distribution as well as through product innovation.

MFS president Rob Manning spoke to the progress made to re-establish confidence in MFS and enhance fund performance. MFS is the 10th largest mutual fund company in the U.S.

Douglas Henck, president of Sun Life Financial Asia, said Asia sales have been growing at a compounded annual growth rate of 55% in local currency since 2001 driven largely by tremendous sales levels in India and China. Gary Comerford, Vice President, International and General Manager, India, noted that Birla Sun Life Insurance today has 10,000 captive advisors, branches in nearly 40 cities and more than 50 corporate relationships that distribute life products. “Today, we are the second largest private life insurance company in India with approximately 16% market share.”