Sun Life reports first quarter net income of $669 million

By The IJ Staff | May 09 2018 01:30PM

Dean Connor

Sun Life Financial (SFL) reported on May 8 net income of $669 million for Q1 2018, compared to $551 million for the same quarter of 2017.

The company reported return on equity of 13.1 per cent for the first quarter, compared to 11 per cent for Q1 2017. Sun Life Financial’s capital strength in the first quarter was 149 per cent and 139 per cent for Sun Life Assurance.

Dean Connor, President and CEO, Sun Life Financial, announced an increase in the company’s common share dividend of 4 per cent to $0.475, which he said reflects confidence in SLF’s growth prospects and strong capital position.

Strengthened digital relationships

"This quarter showcased the sustained progress of our client strategy with strengthened digital relationships to improve the client experience,” said Connor. “Within SLF Canada, almost all of our group health members can file e-claims directly on web and mobile and more than 2.1 million clients are now interacting with us digitally."

SLF Canada results

SLF Canada reported net income of $249 million for Q1 2018, down 6 per cent compared to the same period in 2017. This decrease mainly reflects unfavourable market impacts primarily driven by declining equity markets, says the company.

SLF Canada’s individual insurance sales decreased 39 per cent in Q1 2018 compared to Q1 2017 – a quarter during which the company saw strong sales as a result of tax legislation and product design changes. In the first quarter of 2017, group benefits and wealth sales declined by 32 per cent and 13 per cent, respectively, compared to Q1 2017. This decrease is “mainly due to fewer large case sales,” says SLF.