Sun Life Financial reported net income of $1.3 billion for the third quarter of 2024.

This compares with net earnings of $871 million for the same quarter in 2023. This represents an increase in earnings of $477 million or 55% compared with the third quarter of 2023.

“These results reflect our leadership positions in asset management and insurance, driven by strong insurance growth, and a return on equity of close to 18 percent,” stated Kevin Strain, President and CEO of Sun Life.

The increase in reported net income is attributable to lower estimated acquisition-related liabilities at SLC Management, the favorable impact of equity markets and improved results from real estate investments. These factors were offset by the impact of interest rates.

In Canada  

In Canada, the insurer posted net income to common shareholders of $382 million in the third quarter, compared with the $365 million reported for the same period in 2023. This represents an increase of 5%.

In the Wealth & asset management segment, underlying net income amounted to $101 million in the third quarter of 2024, down $15 million compared to the same period in 2023. The company attributes this to unfavorable credit experience.

In the Individual – Protection segment, the company reported a $16 million increase in underlying net income, to $102 million in the last quarter. This was due to business growth and higher fee-based income. 

The Group - Health & Protection segment reported a $36 million increase in underlying net income to $172 million in the third quarter of 2024. The company again emphasizes business growth and higher fee income.

Sales 

Sun Life's total insurance sales increased by $132 million to $1.2 billion in the third quarter of 2024. This represents an increase of 12.7% over the same quarter last year.

Compared with the figures for the third quarter of 2023, sales of Group - Health & Protection combined with sales of individual protection fell by 11.6% in Canada, but rose by 19% in Asia.

In the United States, where the company does not underwrite individual protection products, sales rose by 25.6% over the same 12-month period. In this respect, the company points out that this result reflects increased sales of dental and group benefits. As a provider of dental benefits, some 35 million people participate in Sun Life Financial plans in the United States, including in underserved regions, the company stated.

Asset management 

Wealth sales & asset management gross flows amounted to $41.9 billion in the third quarter of 2024. This represents an increase of $2.6 billion or 6.6% over the same period last year.

Wealth sales & asset management gross flows in Canada amounted to $3.8 billion in the third quarter, an increase of $360 million or 10.6% compared with the third quarter of 2023.

The company attributes this result to “higher mutual fund sales in Individual Wealth, partially offset by lower defined benefit solution sales in Group Retirement Services ("GRS") and guaranteed product sales in Individual Wealth.” 

Wealth sales & asset management gross flows of $4 billion were up 11%, driven by higher mutual fund sales in Individual Wealth, partially offset by lower defined benefit solution sales in Group Retirement Services ("GRS") and guaranteed product sales in Individual Wealth. 

In Asia, sales were up by $238 million, or 14.3%, to $1.9 billion in the third quarter of 2024. The company says this performance was “driven by higher fixed income fund and mutual fund sales in India, partially offset by lower money market fund sales in the Philippines and lower Mandatory Provident Fund ("MPF") sales in Hong Kong.” 

In the third quarter, the company launched Sun Global Luna, a product aimed at high-net-worth clients in Asia, to address the need for long-term wealth accumulation potential and thus offer an integrated estate planning solution, explains Sun Life in its press release issued on November 5, 2024.

In releasing its results, the company also announced a $0.03 increase in the dividend paid on each common share. At September 30, 2024, the company's shares were trading at $78.45 on the Toronto Stock Exchange. It reached $77.45 at market close on November 4. At the beginning of July, the stock was worth $66.97 and has remained above $75 since September 11, 2024. 

As at September 30, 2024, assets under management totaled $873 billion for MFS and $230 billion for SLC Management. These figures represent increases of 16% and 5% respectively over those reported a year earlier.