Sun Life reports Q4 net earnings of $744 million
Sun Life Financial Inc. released its fourth quarter and full year results for 2020, showing an increase in reported net income, underlying net income and assets under management (AUM).
Reported net income in the fourth quarter of 2020 was $744-million, up from $719-million in the fourth quarter of 2019. Full year net income came in at $2.4-billion, down from $2.6-billion for the full year in 2019. Underlying net income, meanwhile, was $862-million, up from $792-million in the fourth quarter of 2019. Underlying net income for the full year was $3.2-billion, up from the $3-billion reported at the end of 2019.
Insurance and wealth sales
Overall insurance sales were relatively flat while wealth sales rose during the quarter and during the year. The company is reporting $1.4-billion in insurance sales and $51.6-billion in wealth sales during the fourth quarter of 2020, up from $1.4-billion and $44.9-billion respectively in the fourth quarter of 2019.
For the full year, insurance sales were flat again, reaching $3.5-billion for the year, while wealth sales totalled $220.9-billion, up from almost $159-billion reported for the full year in 2019.
The company’s overall AUM reached $1.25-trillion, up from $1.1-trillion at the end of 2019. The company says AUM growth comes from favourable market movements, net inflows, acquisition and other business activities, all partially offset by foreign exchange costs.
Canadian business sees decline
Net income and sales were down across the board for the company’s Canadian business. Reported net income and underlying net income in the company’s Canadian operations were $255-million and $243-million, down seven per cent and eight per cent respectively, from $275-million and $264-million reported in the fourth quarter of 2019.
Similarly, insurance sales and wealth sales were each down 18 per cent in Canada: Insurance sales in Canada were $186-million in the fourth quarter of 2020, down from $228-million during the same period in 2019, while wealth sales brought in $4.8-billion, down from $5.9-billion in wealth sales reported in the fourth quarter of 2019.
Life Insurance Capital Adequacy Test (LICAT) ratios at the end of the fourth quarter were 147 per cent for Sun Life Financial up from 143 per cent in the fourth quarter of 2019. Sun Life Assurance LICAT ratios were 127 per cent, down from 130 per cent at the end of the fourth quarter of 2019.
In a separate announcement, the company added that it will pay dividends of $0.55 per common share, and preferred share dividends ranging between $0.11 and $0.30, on March 31, 2021 to shareholders of record at the close of business on March 1, 2021.