Sun Life Financial Inc. announced its results for the third quarter ended Sept. 30, 2020, reporting a 10 per cent jump in net income to $750-million, up from $681-million in the third quarter of 2019. Underlying net income reached $842-million, up four per cent from $809-million reported for the same quarter in 2019.
Reported earnings per share were $1.28, up from $1.15 in the third quarter of 2019, while underlying earnings per share were $1.44, up from $1.37 as of Sept. 30, 2019. Year-to-date reported earnings per share were down from $3.19 in 2019 to $2.83, year-to-date in 2020. Underlying earnings per share, however, reached $4.02 year-to-date in 2020, up from $3.81 year-to-date in 2019.
Net income gains driven by business growth
The company says underlying net income gains were driven by business growth, favourable results in its Canadian group benefits business, higher new business gains and higher investing activity, all of which were offset partially by taxes, credit experience, and lower net investment returns.
The company says its assets under management reached approximately $1.2-trillion in the third quarter. Sun Life Financial’s solvency ratio was 144 per cent while Sun Life Assurance’s ratio was 127 per cent.
Net income for the company’s Canadian operations was $387-million in the third quarter of 2020, compared to $223-million in the third quarter of 2019, a 74 per cent change. Underlying net income for the company’s Canadian operations rose nine per cent to $293-million, up from $268-million.
Canadian insurance sales declined 28 per cent to $147-million, down from $204-million in the third quarter of 2019. Finally, Canadian wealth sales jumped 65 per cent to $6.837-billion in the third quarter of 2020, up from $4.136-billion during the same period in 2019.
Overall insurance sales for the whole company reached $681-million, down one per cent from $685-million, while overall wealth sales totaled $52.684-billion, up 28 per cent from $41.151-billion in the third quarter of 2019.
Following the release of its earnings, the company also announced it will pay a dividend of $0.55 per common share on Dec. 31, 2020 to shareholders of record at the close of business on Nov. 25.