Hey JJ,
Yeah, we like MFC over SLF for one main reason - valuation. MFC is definitely better valued than SLF and is actually the only insurer to have a 10 (of 10) value score according to Ycharts. It is trading below its own historical averages, and below the valuations where peers currently stand.
Not to say SLF isn't a good stock - it is. We just really like MFC's valuation in comparison. Although SLF is expected to growth at a slightly faster pace, I don't think MFC's discounted valuation in comparison is warranted. It is worth noting that SLF has dipped recently and is trading below its own historical valuations, but compared to the industry it does command a premium - a premium it has typically commanded.
MFC has been chronically undervalued for a while now and investors likely have to be patient with it. The signs of a turnaround in market sentiment are there, and once the market fully gets on board, we think it has some nice upside. Kind of like how POW was ignored for years until the markets fully took stock of this and sent its shares soaring in 2021 and is now close to reaching all-time highs not seen since pre-Financial Crisis.
Mat