Sun Life reports Q2 net income of $706 millionBy The IJ Staff | August 09 2018 11:30AM
Sun Life Financial reported on Aug. 8 net income of $706 million for the second quarter of 2018, an increase from $574 million of net income reported for Q2 2017. Underlying net income for Q2 2018 was $729 million compared to $689 million for Q2 2017.
Reported return on equity (ROE) for Q2 2018 stood at 13.5 per cent, compared to 11.4 per cent for Q2 2017.
"In the second quarter we delivered strong underlying net income of $729 million, return on equity at the top of our target range, and maintained our strong capital position," said Dean Connor, President and CEO, Sun Life Financial. "We also achieved a significant milestone this quarter in our industry-leading Group Retirement Services business in SLF Canada, achieving $100 billion of assets under administration."
SLF Canada’s results
SLF Canada’s reported net income was $262 million in the quarter, up $77 million compared to the same period in 2017, “largely reflecting favourable market related impacts,” says the company. Underlying net income of $245 million was down by $21 million from the same period in 2017, “reflecting lower new business gains primarily in Group Retirement Services which experienced strong sales results in 2017 and unfavourable credit experience,” says Sun Life.
In Canada, insurance sales were up 16 per cent driven by strong sales in both Individual Insurance and Group Benefits. “Wealth sales declined 20 per cent, mainly due to a large-case sale in GRS in 2017, while Individual wealth sales increased by 7 per cent compared to the same quarter in the prior year due to continued growth from our wealth manufactured products,” says the company.