Sun Life sets goal of C$2 billion operating income by 2015

Thu Mar 8, 2012 1:22pm EST
 
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TORONTO (Reuters) - Sun Life Financial (SLF.TO: Quote), whose profit has been hurt by volatile stock markets and low bond yields over the last three years, said on Thursday it aims to raise its annual operating net income to C$2 billion ($2.01 billion) by 2015.

The Toronto-based insurer, which posted operating income of just C$104 million in 2011 due in part to weak markets, also set a goal of operating return on equity of 12 to 13 percent by 2015.

The objectives were released ahead of an investor presentation by Dean Connor, who replaced Don Stewart as chief executive of the company late last year.

Sun Life said the goals were depended on certain assumptions, including an annual rise of about 8 percent in key stock market indexes and a gradual increase in North American interest rates across the yield curve.

The bank's shares were up 33 Canadian cents at C$21.00 on the Toronto Stock Exchange on Thursday afternoon.

($1=$0.99 Canadian)

(Reporting By Cameron French Editing by Peter Galloway)