Sun Life earns $1.35 billion in Q3

Sun Life Financial Inc. says it earned $1.35 billion in the third quarter, up from $871 million in the same quarter last year.

The underlying net income for the quarter was $1.02 billion, up $86 million or 9% from a year earlier. The increase was driven by growth in the company’s group and individual benefits and higher fee income in its wealth and asset management divisions, the insurer said.

The insurance giant had $1.51 trillion in assets under management on Sept. 30, up 13% from the same period last year. This uptick was mainly driven by segregated, retail, institutional and managed funds.

The Canadian division’s underlying net income was $375 million, up $37 million or 11% compared to the third quarter of 2023. Higher investment contributions in individual protection and business growth in group protection contributed to the increase, which was partially offset by an unfavourable credit experience in wealth and asset management, the insurer said.

Sun Life reported wealth and asset management gross flows in Canada of $4 billion, up 11% from a year ago, thanks to higher mutual fund sales. However, individual protection sales dropped 24% to $112 million, reflecting lower third-party sales.

The insurer increased its dividend by three cents to $0.84 per common share.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.