Sun Life Malaysia is preparing for a major growth push as it aims to double its profitability within the next three years, even as competition in the local insurance industry intensifies. The insurer, jointly owned by Khazanah Nasional Bhd and Sun Life Assurance Co of Canada, has been operating in Malaysia since 2013. Its president and country head, Ho Teck Seng, who assumed leadership in July, has introduced a five-year strategy focused on elevating the company into the top five insurers in the country. Currently ranked seventh, the company is also targeting a rapid increase in profitability, a goal Ho acknowledges is ambitious given the new IFRS 17 accounting standard, which delays profit recognition over the lifetime of insurance contracts rather than upfront.
A substantial portion of Sun Life Malaysia’s gross written premium (GWP) comes from bancassurance, with CIMB Bank serving as its primary partner. Although Ho did not reveal specific figures, he confirmed that bancassurance contributes a significant share of the company’s premium income. However, declining foot traffic in bank branches, a trend that accelerated post-pandemic, has become a challenge. To sustain growth, Ho says the company must strengthen both its bancassurance and agency distribution channels to stay relevant to evolving customer behaviour.
Financially, Sun Life Malaysia has continued to show resilience. Sun Life Malaysia Assurance Bhd (SLMA), which handles the conventional life insurance business, posted a net profit of RM116.64 million in FY2024, up from RM98.16 million previously, while revenue rose slightly to RM365.32 million. However, first-half net profit for FY2025 eased to RM42.99 million from RM60.83 million a year earlier. Sun Life Malaysia Takaful Bhd (SLMT), which oversees the family takaful segment, recorded stronger momentum with net profit rising to RM44.63 million in FY2024 and maintaining growth in 1HFY2025 at RM31.35 million. As at Sept 30, the group’s GWP stood at RM1.27 billion, while assets under management have expanded to RM7.7 billion, compared to RM2.39 billion in 2014. Ho added that the insurer has been one of Malaysia’s fastest-growing players, delivering a 16% compound annual growth rate in new business and increasing market share from 1.7% in 2013 to 4.4% in 2024.
To support long-term growth, Sun Life Malaysia plans to aggressively expand its agency force from about 1,200 agents to 3,000 within two years. Ho describes this as a bold but necessary move to complement its strong banca presence and balance growth between its conventional and takaful businesses. Over the past five years, the takaful segment has grown at roughly double the rate of the conventional market. The company currently ranks fourth in the country’s bancassurance market with a 9.8% share and leads the bancatakaful market with a 20.1% share.
Digital transformation remains a central investment area for Sun Life Malaysia. About 20% to 30% of its annual expenditure is directed toward technology enhancements aimed at improving both agent efficiency and customer experience. Ho noted that digital tools help streamline onboarding processes for agents, while data analytics strengthen bancassurance operations. A notable proportion of customers — one in three each month — are repeat clients, a trend the company hopes to build on by creating more continuous and personalised customer journeys. Ho emphasised that while significant investments have been made in digital capabilities, the next phase involves pairing technology with process improvements, including efforts to eventually enable certain claims to be paid within seconds.
Medical inflation remains a key industry-wide concern, with premium costs rising amid inflation and escalating claims. Ho highlighted that medical inflation is expected to be around 16% this year, consistent with the 12% to 18% range in recent years. While Sun Life Malaysia is not yet a major player in health insurance, the company is gradually expanding its offerings in health, wellness, and critical illness coverage. Ho expressed support for ongoing discussions between Bank Negara Malaysia, the Ministry of Health, and industry players to develop a more sustainable long-term model for medical cost management. Since 2014, Sun Life Malaysia has served 3.3 million lives and paid close to RM2 billion in claims.
Addressing recent reports that Khazanah might divest its stake in the insurer, Ho declined to comment but said the company maintains strong relationships with both shareholders, who remain satisfied with their investment. Despite uncertainties in the broader healthcare ecosystem, Sun Life Malaysia continues to pursue its long-term growth strategy with confidence, underpinned by rising market share, expanding distribution channels, and sustained investment in digital capabilities.