Three Insurance Firms With Gains Ahead

Article Excerpt

We’ve said for some time that insurers are riskier than they look. Insurance has a stable image, but it has always been highly competitive and volatile. For safety-conscious investors, right now we recommend just three Canadian insurance companies as buys: Manulife Financial, Great-West Lifeco and Sun Life Financial. SUN LIFE FINANCIAL $45 (Toronto symbol SLF; SI Rating: Above-average) offers savings, retirement, pension and life and health insurance products and services to individuals and corporations. The company operates mainly in Canada, the U.S. and the UK, and also in Asia and India. It has assets under administration of $387.2 billion. In the three months ended June 30, 2006, Sun Life’s earnings rose 7.3%, to $512 million, or $0.88 a share, from $477 million or $0.81 a share a year earlier. Revenue rose 4.1%, to $6.2 billion from $6 billion a year earlier. The company recently raised its quarterly dividend by 9.1%, to $0.30 from $0.275. The shares now yield 2.7%. Sun Life is still…

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