Sun Life reports third quarter net income of $817 million

By The IJ Staff | November 09 2017 01:30PM

Dean Connor

Sun Life Financial reported on Nov. 8 third quarter net income of $817 million and underlying net income of $643 million. This compares to net income of $737 million and underlying net income of $639 million for the same quarter of 2016.

Reported return on equity for Q3 2017 was 16.2 per cent and underlying ROE was 12.7 per cent. This compares to reported ROE of 15.4 per cent for Q3 2016 and underlying ROE of 13.4 per cent.

Life and health insurance sales

Sun Life reported life and health sales of $599 million in Q3 2017, down from $661 million in Q3 2016. Wealth sales were $35.8 billion in the third quarter of 2017, compared to $35.2 billion in the third quarter of 2016

"Our third quarter was defined by strong earnings and good progress in all of our four business pillars," said Dean Connor, President and CEO, Sun Life Financial. "We are also pleased to announce an increase in our common share dividend by 2 cents. During the year, we've increased our dividend by 8 per cent, a signal of our continued growth prospects, strong capital position, and commitment to meeting our medium-term financial objectives."

Client-driven strategy

Connor added that the quarter included examples of how the company is bringing its “client-driven strategy to life…In Canada, clients can now buy life insurance online in just minutes with Sun Life GO; and, we introduced Ella, an interactive digital coach that helps clients maximize their benefits and pension plans."

In Canada, Sun Life reported strong growth in sales in its group businesses. At $130 million, Group Benefits sales were up 23 per cent and Group Retirement Services sales reached $2.3 billion, up 53 per cent from the third quarter of 2016. “Following a strong first six months of the year, individual insurance sales moderated to $87 million, 15 per cent below the same period a year ago,” stated Sun Life. Individual wealth sales rose five per cent year-over-year to $1.3 billion.