Sun Life Hong Kong Limited announced Tuesday that it has received an upgrade to its financial strength and issuer credit ratings from S&P Global Ratings, moving from “AA-” to “AA” with a stable outlook.

S&P cited Sun Life Hong Kong as a core subsidiary of Sun Life Financial Inc., reflecting the unit’s key role in the parent group’s strategic focus on Asia. The rating agency also noted that Sun Life maintains a leading competitive position and a very strong financial risk profile.

The Hong Kong unit is the largest operating entity for Sun Life in Asia, contributing over 40% of the region’s underlying net income.

Clement Lam, chief executive officer of Sun Life Hong Kong, said the upgrade marked a milestone for the company.

“We are proud to receive our first ‘AA’ rating from S&P, marking a significant milestone for Sun Life Hong Kong,” Lam said. “This upgrade is a strong endorsement of our financial strength, resilience, and long-term growth trajectory. It also reflects the trust our clients place in us and reinforces our commitment to helping them achieve lifetime financial security and live healthier lives through innovative, tailored solutions. Building on this strong foundation, we will continue to execute with discipline, practice customer-centric innovation, and deliver sustainable value.”

As a core subsidiary, Sun Life Hong Kong is expected to continue benefiting from the group’s capital base, global expertise, and risk management capabilities, according to S&P.

Lam added that the company intends to build on its more than a century of presence in Hong Kong.

“With the strong backing of the Group and our deep roots in Hong Kong spanning more than a century, we will continue to grow our business and accelerate digital innovation – delivering more comprehensive, personalized health and wealth protection solutions to meet the evolving needs of our clients,” he said.

The rating upgrade follows a period of strong financial performance for the group’s Asia operations. Sun Life’s Asia segment posted underlying net income of CA$207 million in the fourth quarter of 2025, an 18% increase from the prior year, with strong sales and profit margins driven primarily by Hong Kong. The quarterly result built on earlier momentum: in the third quarter of 2025, Asia underlying net income reached CA$226 million, up 33% year over year.