Sun Life Financial has declined for the third consecutive quarter.
The insurer reported net income of $466 million ($M) in the third quarter of 2022, compared with $1 billion ($B) in Q3 2021.
The 54.3 per cent or $553 million decrease primarily reflects “unfavourable market-related impacts, a $170 million charge related to the sale of Sun Life UK, less favourable [assumption changes and management actions] impacts, and an increase in SLC Management's acquisition-related liabilities,” says Sun Life.
These factors were “partially offset by fair value changes on MFS' share-based payment awards.”
Four out of Sun Life’s five business segments saw setbacks, including Canada.
Canada
The insurer reported net income of $210 million in Canada in the third quarter of 2022, compared with $393 million in Q3 2021. The plunge of 46.6 per cent or $183 million mainly reflects “market-related impacts, due to interest rate movements and lower equity markets.”
“Growth in protection and health was mostly offset by lower wealth results mainly driven by declines in equity markets,” the insurer adds.
Around the world
In addition,
- Sun Life sustained a net loss of $178 million in its corporate segment in Q3 2022, a $169 million plunge from the $9 million loss reported in 2021;
- Net income in Asia fell 56.6 per cent or $163 million, to $125 million, versus Q3 2021;
- Net income in Asset Management in Q3 was $215 million, down 28.6 per cent or $86 million from prior year.
In contrast, Sun Life reported US net income of $94 million, up 104.3 per cent or $48 million.
Insurance sales
Sun Life's total insurance sales were $943 million in the third quarter of 2022, compared with $628 million in Q3 2021. This represents an increase of 50.2 per cent or $315 million.
Insurance sales in Canada were $233 million in Q3 2022, versus $182 million in Q3 2021. This increase of 28 per cent or $51 million was “driven by large case group benefits sales in Sun Life Health and higher individual participating whole life insurance sales.”
Insurance sales grew by 83.9 per cent or $167 million in the U.S. to $366 million and 39.3 per cent or $97 million in Asia to $344 million.
Wealth sales
Wealth sales and asset management gross flows were $43.1 billion in the third quarter of 2022, compared with $50.7 billion in the third quarter of 2021. The corresponding decrease is 15 per cent or $7.6 billion.
In Canada, wealth product sales were $4.1 billion in the third quarter of 2022, compared with $5.9 billion in Q3 2021. This is decline of 30.2 per cent or $1.8 billion reflects “lower defined contribution and defined benefit solutions sales in Group Retirement Services, and lower individual wealth sales.”
Wealth sales declined by 38.6 per cent or $1.6 billion in Asia to $2.5 billion, and by 10.4 per cent or $4.2 billion in Asset Management, to $36.4 billion.
