Sun Life makes a U.S. buy

Article Excerpt

SUN LIFE FINANCIAL, $67.56, is a buy. This Canadian insurance giant (Toronto symbol SLF; Shares outstanding: 585.9 million; Market cap: $39.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.3%; www.sunlife.ca) sells life coverage, savings, retirement and pension products. The company operates in Canada, the U.S., Asia and the U.K. It has $1.4 trillion in assets under management. In October 2021, Sun Life announced that its U.S. business would acquire DentaQuest for $2.48 billion U.S. The Boston-based company is the largest provider of Medicaid dental benefits in the U.S. It has more than 33 million members in 36 states. DentaQuest focuses on underserved communities. Sun Life’s acquisition significantly strengthens its U.S. dental benefits business. In addition, it will more than double its employee benefits revenue south of the border. The transaction will close in the first half of 2022. It should also add $100 million U.S. to Sun Life’s underlying profits after the first year. Sun Life Financial is a buy. buy…