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Life and health sales decreased 9.4% year over year to $446 million (C$599 million), while wealth sales inched up 1.7% year over year to $28.6 million (C$35.8 billion) in the quarter.
Adjusted premiums and deposits were $33.7 billion (C$42.3 billion), up 3.4% year over year, fueled by higher managed and mutual fund sales.
Net premiums decreased 5.1% year over year to $2.9 billion (C$3.7 billion), attributable to lower premiums from Hong Kong in SLF Asia, Group Benefits in SLF U.S., GRS in SLF Canada and the currency impact from the change in the Canadian dollar. However, higher premiums for in-force management in SLF U.S. limited the downside.
Segment Results
SLF Canada’s underlying net income decreased 1.2% year over year to $177 million (C$222 million). The company witnessed lower investing activity gains on insurance contract liabilities and an unfavorable morbidity experience in Group Benefits. However, growth in fee income on wealth businesses and strong new business gains in GRS and individual insurance, plus an improved expense experience limited the downside.
SLF U.S.’s underlying net income was $129 million, up 25.2% from the year-ago quarter. The increase stemmed from improved morbidity experience in stop-loss and favorable mortality experience in the group life business.
SLF Asset Management’s underlying operating net income of $163 million (C$204 million), increased 8.5% year over year, driven by a solid performance at MFS Investment Management that in turn was fueled by higher average net assets.
SLF Asia reported underlying income of $71.8 million (C$90 million), up 12.5% year over year. Continued growth in fee income business and higher level of gains from investments drove this upside.
Financial Update
Global assets under management were $750 billion (C$934 billion), up 3.4% from the level at 2016-end. Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio was 252% as of Sep 30, 2017 compared with 248% as of Jun 30, 2017.
Sun Life reported operating return on equity of 16.2% in the third quarter of 2017, expanding 480 basis points year over year. Underlying ROE of 12.7% deteriorated 100 basis points year over year.
Leverage ratio of 22.5% at the quarter-end remained unchanged from the year-ago quarter-end.
Dividend Update
The board of directors of Sun Life approved a 5% increase in dividend to 45.5 cents per share. The payment will be made on Dec 29, 2017 to shareholders of record on Nov 29, 2017.
Among other players from the life insurance industry that have reported third-quarter earnings so far, the bottom line of Lincoln National Corporation (LNC - Free Report) , Torchmark Corporation and Reinsurance Group of America, Incorporated (RGA - Free Report) beat the respective Zacks Consensus Estimate.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
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Sun Life Financial (SLF) Q3 Earnings Grow Y/Y, Dividend Up
Sun Life Financial Inc. (SLF - Free Report) reported third-quarter 2017 underlying net income of $513 million (C$643 million), up 0.6% year over year.
Sun Life witnessed improved results at three of its segments.
Sun Life Financial Inc. Price, Consensus and EPS Surprise
Sun Life Financial Inc. Price, Consensus and EPS Surprise | Sun Life Financial Inc. Quote
Life and health sales decreased 9.4% year over year to $446 million (C$599 million), while wealth sales inched up 1.7% year over year to $28.6 million (C$35.8 billion) in the quarter.
Adjusted premiums and deposits were $33.7 billion (C$42.3 billion), up 3.4% year over year, fueled by higher managed and mutual fund sales.
Net premiums decreased 5.1% year over year to $2.9 billion (C$3.7 billion), attributable to lower premiums from Hong Kong in SLF Asia, Group Benefits in SLF U.S., GRS in SLF Canada and the currency impact from the change in the Canadian dollar. However, higher premiums for in-force management in SLF U.S. limited the downside.
Segment Results
SLF Canada’s underlying net income decreased 1.2% year over year to $177 million (C$222 million). The company witnessed lower investing activity gains on insurance contract liabilities and an unfavorable morbidity experience in Group Benefits. However, growth in fee income on wealth businesses and strong new business gains in GRS and individual insurance, plus an improved expense experience limited the downside.
SLF U.S.’s underlying net income was $129 million, up 25.2% from the year-ago quarter. The increase stemmed from improved morbidity experience in stop-loss and favorable mortality experience in the group life business.
SLF Asset Management’s underlying operating net income of $163 million (C$204 million), increased 8.5% year over year, driven by a solid performance at MFS Investment Management that in turn was fueled by higher average net assets.
SLF Asia reported underlying income of $71.8 million (C$90 million), up 12.5% year over year. Continued growth in fee income business and higher level of gains from investments drove this upside.
Financial Update
Global assets under management were $750 billion (C$934 billion), up 3.4% from the level at 2016-end. Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio was 252% as of Sep 30, 2017 compared with 248% as of Jun 30, 2017.
Sun Life reported operating return on equity of 16.2% in the third quarter of 2017, expanding 480 basis points year over year. Underlying ROE of 12.7% deteriorated 100 basis points year over year.
Leverage ratio of 22.5% at the quarter-end remained unchanged from the year-ago quarter-end.
Dividend Update
The board of directors of Sun Life approved a 5% increase in dividend to 45.5 cents per share. The payment will be made on Dec 29, 2017 to shareholders of record on Nov 29, 2017.
Zacks Rank
Sun Life carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Among other players from the life insurance industry that have reported third-quarter earnings so far, the bottom line of Lincoln National Corporation (LNC - Free Report) , Torchmark Corporation and Reinsurance Group of America, Incorporated (RGA - Free Report) beat the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>