Sun Life reports net income of $2.6-billion for 2019By The IJ Staff | February 13 2020 01:40PM
Sun Life Financial has reported net income of $719-million and underlying net income of $792-million for the fourth quarter of 2019. These numbers are up from $580-million in reported net income and $718-million in underlying net income posted in the fourth quarter of 2018.
For the full year, the company posted net income of $2.6-billion (reported net income) and $3-billion (underlying net income) in 2019, up from $2.5-billion and $2.9-billion reported in 2018.
“Reported net income increased by $96-million or 4 per cent in 2019, compared to 2018,” the company said in a statement released Feb. 12. “Underlying net income increased by $110-million or 4 per cent, driven by business growth, higher net benefits from tax-related items, improved expense experience, favourable mortality experience in the U.S. and Canada and improved lapse and other policy holder behaviour.” The benefits, they say, were partially offset by unfavourable morbidity experience in Canada and lower new business gains in Canada and Asia.
The company’s total assets under management came in at $1-trillion during the quarter. For the year, the company saw net outflows of $9.3-billion. For the fourth quarter of 2019, net inflows reached $1.2-billion. Sun Life Financial Inc.’s LICAT (Life Insurance Capital Adequacy Test) ratio is 143 per cent, down from 146 per cent in the third quarter of 2019, while Sun Life Assurance’s LICAT ratio sits at 130 per cent, down from 133 per cent reported in the third quarter of 2019.
In addition, the company announced that it would pay a dividend of $0.55 per share on all common shares of the company, payable March 31, 2020 to shareholders of record at the close of business on March 2, 2020.