Sun Life Q3 earnings up, led by higher sales in Asia

By The IJ Staff | November 07 2019 01:18PM

Sun Life Financial reported its third-quarter earnings with net income of $681 million, an increase from $567 million in Q3 2018. The company also increased common share dividend of 5%.

“We delivered on another quarter of growth,” said Dean Connor, president and CEO of Sun Life. “We are pleased with the growth in insurance sales, led by Asia, our fastest growing pillar, and growth in asset management sales, where we are meeting our clients’ needs for active fund managers.”

Asia insurance sales increased 47% over last year, with particular strength in Hong Kong, and an increase in international high net worth sales. In asset management, net inflows of $3.2 billion were driven by both MFS and SLC Management.

Wealth sales in Canada rose

Canadian insurance sales were $204 million in the third quarter of 2019, in line with the same period last year. Canada wealth sales were $4.1 billion for the third quarter of 2019, an increase of $597 million or 17% compared to the same period last year.

Connor said Sun Life is continuing to shape the Canadian market with digital and health solutions, as well as expanding its suite of available healthcare products to include pharmacogenomics. The company said these moves have resulted in improved health outcomes for clients. The solution has now been embedded into its disability case management to help clients return to work sooner.

Medical stop-loss sales increase in U.S.

In the U.S., group benefits sales were $184 million in the third quarter of 2019, an increase of $12 million or 7% compared to the same period in 2018, driven primarily by increases in medical stop-loss sales.

Asset Management ended the third quarter with $738.7 billion in AUM, consisting of $655.5 billion in MFS and $83.2 billion in SLC Management. MFS and SLC Management reported net inflows of $1.7 billion (US$1.3 billion) and $1.5 billion in the quarter, respectively.

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