SUN Life reported a better-than-expected third-quarter profit on Monday (Nov 4) as Canada’s second-largest life insurer benefited from robust growth in its domestic and US businesses.
The earnings beat was primarily driven by strong insurance sales within Sun Life’s group businesses – which provide health and protection benefits to employer and government plan members – both at home and in the United States.
Underlying earnings from Sun Life’s Canada business rose 11 per cent to C$375 million (S$356 million) in the quarter.
“These results reflect our leadership positions in asset management and insurance, driven by strong insurance growth,” CEO Kevin Strain said.
Underlying earnings in the US business jumped 18 per cent to C$219 million in the quarter, driven by strong growth in group benefits insurance sales.
US group sales jumped 26 per cent to C$300 million, driven by dental and employee benefits sales, Sun Life said.
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The company’s US dental business continued to face headwinds, driven by the impact of the Medicaid renewals following the end of the public health emergency.
Meanwhile, Sun Life’s wealth and asset management posted underlying earnings of C$474 million, a 4 per cent rise from prior year, driven by higher fee income.
Assets under management jumped 13 per cent to C$1.5 trillion from a year earlier.
The company’s underlying net income was C$1 billion, or C$1.76 per share, in the three months ended Sep 30, compared with C$930 million, or C$1.59 per share, a year earlier.
Analysts on average had expected Sun Life to earn C$1.70 per share, according to estimates compiled by LSEG.
Bigger rival Manulife Financial is slated to report its results on Wednesday. REUTERS
