We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sun Life Financial (SLF) Q3 Earnings Increase Year Over Year
Read MoreHide Full Article
Sun Life Financial (SLF - Free Report) reported third-quarter 2021 underlying net income of $765 million (C$902 million), up 21% year over year. This improvement was driven by business growth, favorable credit experience, and higher tax-exempt investment income. These were partially offset by morbidity and expense experience and the unfavorable impacts of foreign exchange translation.
Insurance sales increased 4.2% year over year to $532.6 million (C$628 million) on the back of higher sales in SLF Canada. Wealth sales were up 8.9% year over year to $43 billion (C$50.7 billion) in the quarter on higher sales in Asia.
Value of new business increased 25.4% year over year to $245.9 million (C$290 million).
Sun Life Financial Inc. Price, Consensus and EPS Surprise
SLF Canada’s underlying net income increased 11.8% year over year to $246 million (C$290 million) driven by business growth, higher tax-exempt investment income and favorable credit experience, partly offset by unfavorable Group Benefits morbidity experience and higher expenses. Insurance sales increased 24%, driven by higher individual participating whole life insurance sales and higher large case sales in GB. Wealth sales decreased 13% due to lower defined contribution sales in Group Retirement Services (GRS), partly offset by higher individual wealth mutual fund sales.
SLF U.S.’ underlying net income was $93.3 million (C$110 million), down 8.5% from the prior-year quarter due to an increase in COVID-related claims impacting employee benefits mortality and morbidity experience, and the unfavorable impacts of foreign exchange translation. This was partially offset by morbidity experience in medical stop-loss and mortality claims experience in In-Force Management. Sales decreased 13% year over year due to lower employee benefits and medical stop loss sales.
SLF Asset Management’s underlying net income of $307 million (C$362 million) increased 39.5% year over year, driven by MFS and SLC Management, partially offset by the unfavorable impacts of foreign exchange translation.
SLF Asia reported an underlying income of $122 million (C$145 million), down 0.8% year over year, due to an unfavorable mortality experience in Indonesia and the Philippines related to COVID-19, higher digital investments and the unfavorable impacts of foreign exchange translation. These were partly offset by business growth. Insurance sales decreased 19% year over year due to lower Hong Kong and International sales, partially offset by higher sales in the Philippines and India. Wealth sales increased 48%, driven by mutual fund sales in India, money market sales in the Philippines and the pension business in Hong Kong.
Financial Update
Global assets under management were $1,089.96 billion (C$1,386 billion). Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (LICAT) ratio was 124% as of Sep 30, 2021 versus 127% as of Sep 30, 2020.
The LICAT ratio for Sun Life was 143% as of Sep 30, 2021 versus 144% as of Sep 30, 2020.
Sun Life’s reported return on equity of 17.6% in the third quarter expanded 410 basis points (bps) year over year. Underlying ROE of 15.6% expanded 50 bps year over year.
Leverage ratio of 22.2% at quarter-end deteriorated 70 basis points year over year.
Of the insurance industry players that have reported third-quarter results so far, American Financial Group (AFG - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and Athene Holding Ltd. beat the respective Zacks Consensus Estimate for earnings.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sun Life Financial (SLF) Q3 Earnings Increase Year Over Year
Sun Life Financial (SLF - Free Report) reported third-quarter 2021 underlying net income of $765 million (C$902 million), up 21% year over year. This improvement was driven by business growth, favorable credit experience, and higher tax-exempt investment income. These were partially offset by morbidity and expense experience and the unfavorable impacts of foreign exchange translation.
Insurance sales increased 4.2% year over year to $532.6 million (C$628 million) on the back of higher sales in SLF Canada. Wealth sales were up 8.9% year over year to $43 billion (C$50.7 billion) in the quarter on higher sales in Asia.
Value of new business increased 25.4% year over year to $245.9 million (C$290 million).
Sun Life Financial Inc. Price, Consensus and EPS Surprise
Sun Life Financial Inc. price-consensus-eps-surprise-chart | Sun Life Financial Inc. Quote
Segmental Results
SLF Canada’s underlying net income increased 11.8% year over year to $246 million (C$290 million) driven by business growth, higher tax-exempt investment income and favorable credit experience, partly offset by unfavorable Group Benefits morbidity experience and higher expenses. Insurance sales increased 24%, driven by higher individual participating whole life insurance sales and higher large case sales in GB. Wealth sales decreased 13% due to lower defined contribution sales in Group Retirement Services (GRS), partly offset by higher individual wealth mutual fund sales.
SLF U.S.’ underlying net income was $93.3 million (C$110 million), down 8.5% from the prior-year quarter due to an increase in COVID-related claims impacting employee benefits mortality and morbidity experience, and the unfavorable impacts of foreign exchange translation. This was partially offset by morbidity experience in medical stop-loss and mortality claims experience in In-Force Management. Sales decreased 13% year over year due to lower employee benefits and medical stop loss sales.
SLF Asset Management’s underlying net income of $307 million (C$362 million) increased 39.5% year over year, driven by MFS and SLC Management, partially offset by the unfavorable impacts of foreign exchange translation.
SLF Asia reported an underlying income of $122 million (C$145 million), down 0.8% year over year, due to an unfavorable mortality experience in Indonesia and the Philippines related to COVID-19, higher digital investments and the unfavorable impacts of foreign exchange translation. These were partly offset by business growth. Insurance sales decreased 19% year over year due to lower Hong Kong and International sales, partially offset by higher sales in the Philippines and India. Wealth sales increased 48%, driven by mutual fund sales in India, money market sales in the Philippines and the pension business in Hong Kong.
Financial Update
Global assets under management were $1,089.96 billion (C$1,386 billion).
Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (LICAT) ratio was 124% as of Sep 30, 2021 versus 127% as of Sep 30, 2020.
The LICAT ratio for Sun Life was 143% as of Sep 30, 2021 versus 144% as of Sep 30, 2020.
Sun Life’s reported return on equity of 17.6% in the third quarter expanded 410 basis points (bps) year over year. Underlying ROE of 15.6% expanded 50 bps year over year.
Leverage ratio of 22.2% at quarter-end deteriorated 70 basis points year over year.
Zacks Rank
Sun Life currently 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 Insurers
Of the insurance industry players that have reported third-quarter results so far, American Financial Group (AFG - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and Athene Holding Ltd. beat the respective Zacks Consensus Estimate for earnings.