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In the quarter, the company also witnessed strong revenue growth with wealth sales rising 12%.
Adjusted premiums and deposits were $30 billion (C$40.6 billion), up 5% year over year, fueled by higher managed and mutual fund sales and increased net premium revenue.
Adjusted revenues came in at $5.5 billion (C$7.4 billion), up 5.7% year over year. Net premiums increased to $2.9 billion (C$3.9 billion).
Segment Results SLF Canada’s underlying net income increased 33% year over year to $198 million (C$266 million). The company witnessed business growth and strong new business gains in Group Retirement Services and individual insurance, as well as a favorable morbidity experience in Group Benefits, plus a positive credit experience. However, higher expenses, including investment in wealth businesses, partially offset this improvement.
SLF U.S.’s underlying net income was $106 million, up 17.8% from the year-ago quarter. The company witnessed gains from investing activities on insurance contract liabilities, favorable credit experience and a favorable mortality experience in In-force Management and International as well as a favorable morbidity experience in disability. However, an unfavorable morbidity experience in stop-loss related to business written in 2016 was partial offset.
SLF Asset Management’s underlying operating net income of $144 million, increased 26.3% year over year, driven by higher average net assets and lower taxes.
SLF Asia reported underlying income of $60.2 million (C$81 million), up 4.7% year over year. Business growth, partially offset by higher new business strain, favored the quarterly performance.
Financial Update
Global assets under management were $710 billion (C$944 billion), up 4.5% from the level at 2016-end.
Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio was 248% as of Jun 30, 2017 compared with 249% as of Mar 31, 2017.
Sun Life reported operating return on equity of 11.4% in the second quarter of 2017, thus expanding 110 basis points year over year. Underlying ROE of 13.7% improved 180 basis points year over year.
Dividend Update
The board of directors of Sun Life approved of a dividend of 43.5 cents per share.
Among other players from the insurance industry, having reported second-quarter earnings so far, both Brown & Brown, Inc. (BRO - Free Report) and Fidelity National Financial, Inc’s. (FNF - Free Report) bottom lines beat their respective Zacks Consensus Estimate while The Progressive Corporation (PGR - Free Report) missed the same.
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Sun Life Financial (SLF) Q2 Earnings, Revenues Rise Y/Y
Sun Life Financial Inc. (SLF - Free Report) reported second-quarter 2017 underlying net income of $512 million (C$689 million), up 24% year over year.
Sun Life witnessed strong performance across its four segments.
Sun Life Financial Inc. Price, Consensus and EPS Surprise
Sun Life Financial Inc. Price, Consensus and EPS Surprise | Sun Life Financial Inc. Quote
In the quarter, the company also witnessed strong revenue growth with wealth sales rising 12%.
Adjusted premiums and deposits were $30 billion (C$40.6 billion), up 5% year over year, fueled by higher managed and mutual fund sales and increased net premium revenue.
Adjusted revenues came in at $5.5 billion (C$7.4 billion), up 5.7% year over year. Net premiums increased to $2.9 billion (C$3.9 billion).
Segment Results
SLF Canada’s underlying net income increased 33% year over year to $198 million (C$266 million). The company witnessed business growth and strong new business gains in Group Retirement Services and individual insurance, as well as a favorable morbidity experience in Group Benefits, plus a positive credit experience. However, higher expenses, including investment in wealth businesses, partially offset this improvement.
SLF U.S.’s underlying net income was $106 million, up 17.8% from the year-ago quarter. The company witnessed gains from investing activities on insurance contract liabilities, favorable credit experience and a favorable mortality experience in In-force Management and International as well as a favorable morbidity experience in disability. However, an unfavorable morbidity experience in stop-loss related to business written in 2016 was partial offset.
SLF Asset Management’s underlying operating net income of $144 million, increased 26.3% year over year, driven by higher average net assets and lower taxes.
SLF Asia reported underlying income of $60.2 million (C$81 million), up 4.7% year over year. Business growth, partially offset by higher new business strain, favored the quarterly performance.
Financial Update
Global assets under management were $710 billion (C$944 billion), up 4.5% from the level at 2016-end.
Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio was 248% as of Jun 30, 2017 compared with 249% as of Mar 31, 2017.
Sun Life reported operating return on equity of 11.4% in the second quarter of 2017, thus expanding 110 basis points year over year. Underlying ROE of 13.7% improved 180 basis points year over year.
Dividend Update
The board of directors of Sun Life approved of a dividend of 43.5 cents per share.
Zacks Rank
Sun Life sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Insurers
Among other players from the insurance industry, having reported second-quarter earnings so far, both Brown & Brown, Inc. (BRO - Free Report) and Fidelity National Financial, Inc’s. (FNF - Free Report) bottom lines beat their respective Zacks Consensus Estimate while The Progressive Corporation (PGR - Free Report) missed the same.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today. Learn more >>