A.M. Best Affirms Ratings of Sun Life; Upgrades Ratings of Acquired Genworth Life & Health Companies

Business Wire, June 12, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Superior) and the issuer credit ratings (ICR) of "aa " of Sun Life Assurance Company of Canada (Sun Life) (Toronto, Canada), Sun Life Assurance Company of Canada (U.S.) (Wilmington, DE) and Sun Life Insurance and Annuity Company of New York (New York, NY). Concurrently, A.M. Best has affirmed the ICR of "aa-" and the debt ratings of Sun Life Financial Inc. (SLF) (Toronto, Canada). The outlook for all ratings is stable. (See link below for a detailed listing of companies and ratings.)

The ratings reflect SLF's diversified revenue stream from multiple regions, profitable operations and strong risk-adjusted capitalization. SLF is a Canadian-based holding company with a top three market position in the Canadian insurance market. SLF also maintains strong operations in the U.S. life insurance and financial services segments, as well as an expanding life insurance and wealth management operation in Asia. SLF operates within a well developed and fully integrated risk management framework.

SLF has maintained favorable debt servicing capabilities, underpinned by its strong market position and growing earnings base. SLF's earnings are sustained by its diverse operations that have been enhanced by expense synergies and the improved performance of its asset management business. A.M. Best anticipates that SLF will maintain adjusted debt-to-capital at levels below 25%.

Partially offsetting these rating strengths is the ongoing strong competition SLF faces in both its domestic and international markets, moderating earnings in its U.S. businesses and currency risk due to the appreciation of the Canadian dollar relative to foreign currencies. Spread compression due to low interest rates and equity market volatility will continue to impact its wealth management business lines.

In addition, A.M. Best has upgraded the FSR to A (Superior) from A (Excellent) and the ICRs to "aa-" from "a" of Genworth Life & Health Insurance Company (Genworth L&H) (Windsor, CT) and Professional Insurance Company (Frisco, TX). The ratings have been removed from under review and assigned a stable outlook. The acquisition by SLF adds scale to its group life and health operations in the United States. A.M. Best expects that the newly acquired companies will be adequately capitalized and will benefit from their integration into SLF.

For a complete listing of Sun Life Financial Inc.'s FSRs, ICRs and debt ratings, please visit www.ambest.com/press/061205sunlife.pdf.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.