India Rising: Implications for Canadian Business and Public Policy Sun Life’s India Story Gary M. Comerford Senior Vice President, International Distribution Public Policy Forum December 10, 2008

…Gurcharan Das, “India Unbound” Quote “India is an elephant that has begun to lumber and move ahead. It will never have speed, but it will always have stamina” …Gurcharan Das, “India Unbound”

SLF Operations in Key International Markets Canada Ireland Japan China United States Hong Kong Indonesia Bermuda United Kingdom Philippines India Singapore

India: A Significant Opportunity Fourth largest economy in the world (PPP) GDP growth of 4% - 9% Population of over one billion Growing well-educated, confident middle class English widely used Common Law legal system

GDP Annual Percent Change

BSE (3 year daily closing)

India Emerging: Economic Growth Engine Economic Growth by Sector 10.0 10.7 8.9 7.4 7.1 2.6 Source: EIU Limited 2008

India Emerging: Revving up for the Future Burgeoning Consumer Markets Households (millions) Income (USD) 1995 2000 2005 2010 Affluent (More than $10,000) 3 0.6 0.8 8 Consuming ($3,000 to $10,000) 12 17 47 116 Struggling ($1,000 to $3,000) 105 126 97 147 Impoverished (less than $1,000) negligible 51 44 10 Source: EIU Citigroup Research, India

India’s Demographic Advantage Burgeoning Consumer Markets … driven, in part, by demographics

Before you can ride the elephant, you first must get on ! India Emerging… Before you can ride the elephant, you first must get on !

Sun Life Financial: Our History May 23, 1892 – Sun Life Financial appoints first agent 1956 - Sun Life Financial largest foreign insurer, exits India 1999 Sun Life Financial re-enters India through Joint Venture 2001 Sun Life Financial re-enters Indian insurance market

Sun Life Financial: Our Strategy Financial Services Top Three Positioning Consumer Driven Distribution Product Leadership Strategic Alliance with AV Birla Group

Birla Sun Life Asset Management Company Total Assets Under Management 9.5 billion Cdn $ 400 million May 1999 Dec 2007

Sales Annualized Premiums Birla Sun Life 315 1310 4626 6074 7026 9532 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 YTD Dec'07 12223 (Rs mn) CAGR in FY 08 – 104%

Ten Lessons Learned … The Hard Way Pursue superior opportunities only. Learn to “play” with your partner early. Ownership decision – Mission critical. Constant oversight by senior management of joint venture. Get the right CEO / Managing Director.

Ten Lessons Learned … The Hard Way Sales and market accountability held locally. Agree on the capital burn rate at the outset. Day One: Establish standards. The deal you negotiate is not the deal you live with. Focus. Focus. Focus.

Thank you.