Sun Life Financial reported net income attributable to common shareholders of $646 million for the second quarter of 2024. This represents a 2.1 per cent decrease from the $660 million reported for the same quarter in 2023.
Kevin Strain, President and CEO of Sun Life, stated that the results "reflect continued solid growth in Canada and Asia." He also highlighted the “good momentum” in the wealth and asset management business.
In the U.S., the company saw favourable experience in its group benefits, partially offset by residual headwinds in dental benefits.
Sun Life's underlying net income for the entire company reached $1 billion in Q2 2024, an increase of $80 million or 9 per cent compared to the same period in 2023.
Strain reaffirmed Sun Life Financial's commitment to continuing share buybacks in the third quarter. The company spent $460 million in the second quarter of 2024 to repurchase and cancel shares.
Sun Life Financial intends to buy back approximately 15 million shares, which represents 2.6 per cent of outstanding shares (as of June 30, 2024). Pending approval from the Office of the Superintendent of Financial Institutions and the Toronto Stock Exchange, the buyback offer is expected to begin on August 29 and will remain open for 12 months.
In Canada
In Canada, Sun Life reported net income attributable to common shareholders of $292 million in the second quarter, a significant increase of 39 per cent over the $210 million reported for the same quarter in 2023.
According to the company’s Shareholder’s report, underlying net income in Canada amounted to $402 million in Q2 2024, up $30 million or 8 per cent compared to the same period in 2023.
In the Wealth & Asset Management segment, underlying net income was $130 million in Q2 2024, compared to $110 million for the same period in 2023. This increase is attributed to higher fee income driven by growth in assets under management.
In the Individual – Protection segment, the company reported an $18 million increase in underlying net income, reaching $120 million in the second quarter. This result is attributed to business growth, favorable mortality experience, and increased investment contributions.
The Group – Health & Protection segment, however, saw an $8 million decline in underlying net income, totaling $152 million in the second quarter. The company noted less favorable morbidity results reflecting claims volumes.
Insurance sales
Sun Life's total insurance sales increased by $43 million, reaching $1.2 billion in Q2 2024, a 3.6 per cent rise compared to the same period in 2023.
Compared to Q2 2023, combined Group – Health & Protection insurance sales, along with individual protection sales, rose by 1 per cent in Canada and by 29 per cent in Asia.
In the U.S., where the company does not offer individual protection products, insurance sales fell by 22 per cent over the same 12-month period. According to the Shareholders’ report, this decline reflects a decrease Medicare and Medicaid sales for dental benefits, which had been driven by large institutions in the prior year.
Asset Management
Sales of wealth management products and gross asset management flows totaled $46.2 billion in Q2 2024, a $3.9 billion or 9 per cent increase compared to the same quarter in 2023.
In Canada, sales of wealth sales & asset management gross flows rose by 72 per cent, reaching nearly $5.4 billion. The company attributed this growth to increases in defined benefit and defined contribution plans, as well as mutual funds.
In Asia, these sales increased by 23 per cent to reach $2 billion in Q2 2024. The company noted higher sales of mutual funds and fixed income funds in India, partially offset by lower sales of money market funds in the Philippines.
As of June 30, 2024, assets under management totaled $845 billion for MFS and $227 billion for SLC Management.
