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Why You Should Stay Invested in Sun Life Financial (SLF) Stock
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Sun Life Financial Inc. (SLF - Free Report) is well-poised for growth, driven by higher large case group benefit sales, increased new business gains and prudent capital deployment.
Growth Projections
The Zacks Consensus Estimate for 2023 earnings per share is pegged at $5.05, indicating a year-over-year increase of 6.71%, respectively. The expected long-term earnings growth rate is pegged at 9%.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 1.7% and 1.8% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
Sun Life has a solid track record of beating earnings estimates in six of the last seven quarters.
Zacks Rank & Price Performance
Sun Life currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 12%, compared with the industry’s decrease of 15.2%.
Image Source: Zacks Investment Research
Business Tailwinds
Asia sales are expected to gain from growth in mutual fund sales in India and the Hong Kong pension business. Higher new business gains in international high net worth business should benefit the Asia business.
The Canada business is likely to gain from solid business growth and favorable mortality, morbidity and credit experience, higher large case group benefit sales in Sun Life Health and solid growth in third-party insurance sales.
Sun Life remains well poised for growth on the back of premier asset management franchises at MFS and SLC Management and leading wealth and insurance market positions in Canada. An established presence in attractive markets in Asia as well as a shift toward more capital-light businesses in the United States should also add to the upside.
Sun Life considers acquisitions a prudent approach to ramp up its growth profile. The life insurer continued to effectively manage capital with over 10 strategic transactions in 2021, including the acquisition of Pinnacle Care, the IPO of India Asset Management Joint Venture as well as the acquisition of DentaQuest to boost health and group benefits in the United States. In April 2022, Sun Life announced the expansion of its strategic partnership with CIMB Niaga in Indonesia. This extended partnership will increase distribution and product offerings starting in 2025.
The insurer boasts a strong capital position, which remains strong with Life Insurance Capital Adequacy Test (LICAT) ratios of 128% at SLF and 124% at SLA. Cash and other liquid assets at the holding company increased to $4.7 billion. Sun Life targets minimum cash and other liquid assets at the holding company of $500 million.
Banking on its solid capital position and operational excellence, the insurer announced a 4.5% increase in dividend in May 2022 to reinforce its commitment to provide strong returns to shareholders. Its dividend payout ratio is targeted within the 40-50% range. SLF remains focused on improving ROE and retaining flexibility for future growth opportunities.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 12.5%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 5.1%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 3.1% and 3.3% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 14.2%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 30 days.
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Why You Should Stay Invested in Sun Life Financial (SLF) Stock
Sun Life Financial Inc. (SLF - Free Report) is well-poised for growth, driven by higher large case group benefit sales, increased new business gains and prudent capital deployment.
Growth Projections
The Zacks Consensus Estimate for 2023 earnings per share is pegged at $5.05, indicating a year-over-year increase of 6.71%, respectively. The expected long-term earnings growth rate is pegged at 9%.
Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 has moved 1.7% and 1.8% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
Sun Life has a solid track record of beating earnings estimates in six of the last seven quarters.
Zacks Rank & Price Performance
Sun Life currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 12%, compared with the industry’s decrease of 15.2%.
Image Source: Zacks Investment Research
Business Tailwinds
Asia sales are expected to gain from growth in mutual fund sales in India and the Hong Kong pension business. Higher new business gains in international high net worth business should benefit the Asia business.
The Canada business is likely to gain from solid business growth and favorable mortality, morbidity and credit experience, higher large case group benefit sales in Sun Life Health and solid growth in third-party insurance sales.
Sun Life remains well poised for growth on the back of premier asset management franchises at MFS and SLC Management and leading wealth and insurance market positions in Canada. An established presence in attractive markets in Asia as well as a shift toward more capital-light businesses in the United States should also add to the upside.
Sun Life considers acquisitions a prudent approach to ramp up its growth profile. The life insurer continued to effectively manage capital with over 10 strategic transactions in 2021, including the acquisition of Pinnacle Care, the IPO of India Asset Management Joint Venture as well as the acquisition of DentaQuest to boost health and group benefits in the United States. In April 2022, Sun Life announced the expansion of its strategic partnership with CIMB Niaga in Indonesia. This extended partnership will increase distribution and product offerings starting in 2025.
The insurer boasts a strong capital position, which remains strong with Life Insurance Capital Adequacy Test (LICAT) ratios of 128% at SLF and 124% at SLA. Cash and other liquid assets at the holding company increased to $4.7 billion. Sun Life targets minimum cash and other liquid assets at the holding company of $500 million.
Banking on its solid capital position and operational excellence, the insurer announced a 4.5% increase in dividend in May 2022 to reinforce its commitment to provide strong returns to shareholders. Its dividend payout ratio is targeted within the 40-50% range. SLF remains focused on improving ROE and retaining flexibility for future growth opportunities.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 12.5%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 5.1%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 3.1% and 3.3% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 14.2%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 30 days.