Insurance giant Sun Life Financial’s second-quarter profit up 11% to $716 million

Sun Life Financial Inc. says its second-quarter profit was up 11% from last year.

The Toronto-based insurer says it earned $716 million in its second quarter, up from $646 million a year prior.

Earnings for the period ended June 30 worked out to $1.26 per share, up from $1.11 a year ago.

The company attributed some of the increase to growth in Asia but says it was offset by an impairment charge of $61 million related to the early termination of a U.S. group dental contract.

The insurer’s Canadian segment’s underlying net income of $379 million fell 6% from the same quarter a year prior. This was mainly attributed to lower investment contributions in asset management and wealth, and an unfavourable mortality experience in individual protection.

In Canadian group health and protection, Sun Life had a favourable mortality experience, partially offset by less favourable morbidity experience in disability.

Asset management gross flows and wealth sales in Canada of $5 billion were down 13% year over year from lower defined benefit group sales in group retirement services, as there was a $1.2 billion transaction last year. Group health and protection sales in the country were up 41% to $201 million, driven by large case sales. Individual protection sales were down 19% to $136 million from lower third-party sales.

Global asset management underlying net income of $300 million fell 2%. MFS Investment Management experienced lower fee income from lower adjusted net assets. On the other side, Sun Life Capital Management had higher fee-related earnings offset by lower net seed investment income.

Asset management assets under management (AUM) of $1.1 trillion decreased $7.1 billion from December 31, 2024, driven by net outflows of $24.4 billion and client distributions of $3.4 billion, partially offset by net asset value gains of $20.7 billion.

In total, Sun Life had $1.54 trillion in AUM as of June 30, 2025, up 5% compared to the same time last year.

The result was far below the $1.80 per share expected by analysts, according to LSEG Data & Analytics. Its underlying earnings per share were $1.79, compared with $1.72 a year prior.

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.