TORONTO – Sun Life Financial Inc. (TSX:SLF) says it worked to lower risk and expand its geographic footprint in Asia amid stagnant interest rates last year.

The insurance company says the growing middle class in Asia, baby boomers heading toward retirement and the shift of responsibility from employers to individuals continue to be the main drivers of industry growth.

President and CEO Dean Connor told the company’s annual meeting that relations between Ottawa and Asian governments are crucial to the success of Canadian insurance companies.

Connor called on Canada to work with Asian governments to create a level playing field where Canadian insurers will be able to compete with local companies.

In January of last year, Sun Life stopped selling individual life insurance and annuities in the U.S.

In Canada, the insurance firm, which is the third largest in the country, adjusted prices, changed its product mix and de-risked products.

“These changes … mean we can support our 2013 sales with one-half the capital that we needed in 2011,” Connor said.

In January, the company teamed with Khazanah Nasional Berhad to purchase 98 per cent of a Malaysian life insurance company from its two current owners, which include British insurance group Aviva PLC.

It has also planned to grow its U.S. group insurance and asset management businesses after selling the more volatile variable annuity life insurance unit in December for US$1.35 billion to Delaware Life Holdings.

Over a year ago, the company faced a $635-million charge on the value of its variable annuity and segregated fund insurance contracts, partially due to the insurer’s decision to exit from individual insurance products in the United States.