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 (SLF) Q4 Earnings Top, Insurance Sales Rise Y/Y
Read MoreHide Full Article
Sun Life Financial Inc. (SLF - Free Report) delivered fourth-quarter 2022 underlying net income of $1.25 per share, beating the Zacks Consensus Estimate by 7.8%. The bottom line increased 3.3% year over year. The underlying net income of $729 million (C$990 million) was up 10% year over year driven by earnings growth in the United States and Canada.
Insurance sales increased 14.8% year over year to $1.3 billion (C$1.8 billion), driven by increased sales in Canada, Asia and the United States.
Wealth sales were $33.6 billion (C$45.6 billion), down 17% year over year. The value of new business decreased 5.3% to $345 million (C$468 million).
Sun Life Financial Inc. Price, Consensus and EPS Surprise
SLF Canada’s underlying net income increased 22% year over year to $239 million (C$324 million), driven by experience-related items and higher investment-related earnings.
SLF U.S.’ underlying net income was $177 million (C$240 million), up 77.5% from the prior-year quarter. The increase was driven by growth across all businesses, contribution from the DentaQuest acquisition and favorable experience-related items.
SLF Asset Management’s underlying net income of $231 million (C$313 million) declined 18% year over year. The decrease was attributable to lower results in MFS, largely reflecting declines in global equity markets, which resulted in lower average net assets.
SLF Asia reported an underlying net income of $112 million (C$152 million), which rose 17% year over year. The increase was driven by business growth and experience in protection and health, including improved mortality compared to the prior year, which included COVID-related claims, partially offset by lower fee-based income, reflecting equity market declines.
Financial Update
Global assets under management were $978.9 billion (C$1,326 billion), down 8.2% year over year.
Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (LICAT) ratio was 127% as of Dec 31, 2022, up 300 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 130% as of Dec 31, 2022, down 1500 basis points (bps) year over year
Sun Life’s return on equity was 12.5% in 2022, down 460 bps year over year. The underlying return on equity of 15.1% contracted 40 basis points year over year. The leverage ratio of 25.1% improved 40 bps year over year.
Dividend Update
On Feb 8, the company’s board of directors approved a dividend of 72 cents per share. The amount will be paid out on Mar 31, 2023 to shareholders of record at the close of business on Mar 1.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2022 adjusted operating income of $2.99 per share, which missed the Zacks Consensus Estimate by 14.8%. RGA had incurred an operating loss of 56 cents per share in the prior-year quarter.
Operating revenues of $4.4 billion increased 2.2% year over year. The top line beat the Zacks Consensus Estimate by 1.2%. Net premiums of $3.4 billion rose 1.1% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2022 adjusted operating earnings of $2.18 per share, which surpassed the Zacks Consensus Estimate by 42.5%. The bottom line increased 14.7% year over year.
Adjusted operating revenues amounted to $1.5 billion, which decreased 4.4% year over year. Premiums totaled $610 million, up 12.1% from the year-ago quarter.
Aflac Incorporated (AFL - Free Report) reported fourth-quarter 2022 adjusted EPS of $1.29, which beat the Zacks Consensus Estimate of $1.21 and our estimate of $1.22. The bottom line increased 0.8% year over year.
Revenues dropped 26.2% year over year to $4,010 million in the quarter under review and were lower than our estimate of $4,467 million as well. The top line missed the consensus mark by 10.7%. Adjusted net investment income fell 5.9% year over year to $840 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sun Life (SLF) Q4 Earnings Top, Insurance Sales Rise Y/Y
Sun Life Financial Inc. (SLF - Free Report) delivered fourth-quarter 2022 underlying net income of $1.25 per share, beating the Zacks Consensus Estimate by 7.8%. The bottom line increased 3.3% year over year. The underlying net income of $729 million (C$990 million) was up 10% year over year driven by earnings growth in the United States and Canada.
Insurance sales increased 14.8% year over year to $1.3 billion (C$1.8 billion), driven by increased sales in Canada, Asia and the United States.
Wealth sales were $33.6 billion (C$45.6 billion), down 17% year over year. The value of new business decreased 5.3% to $345 million (C$468 million).
Sun Life Financial Inc. Price, Consensus and EPS Surprise
Sun Life Financial Inc. price-consensus-eps-surprise-chart | Sun Life Financial Inc. Quote
Segment Results
SLF Canada’s underlying net income increased 22% year over year to $239 million (C$324 million), driven by experience-related items and higher investment-related earnings.
SLF U.S.’ underlying net income was $177 million (C$240 million), up 77.5% from the prior-year quarter. The increase was driven by growth across all businesses, contribution from the DentaQuest acquisition and favorable experience-related items.
SLF Asset Management’s underlying net income of $231 million (C$313 million) declined 18% year over year. The decrease was attributable to lower results in MFS, largely reflecting declines in global equity markets, which resulted in lower average net assets.
SLF Asia reported an underlying net income of $112 million (C$152 million), which rose 17% year over year. The increase was driven by business growth and experience in protection and health, including improved mortality compared to the prior year, which included COVID-related claims, partially offset by lower fee-based income, reflecting equity market declines.
Financial Update
Global assets under management were $978.9 billion (C$1,326 billion), down 8.2% year over year.
Sun Life Assurance’s Minimum Continuing Capital and Surplus Requirements (LICAT) ratio was 127% as of Dec 31, 2022, up 300 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 130% as of Dec 31, 2022, down 1500 basis points (bps) year over year
Sun Life’s return on equity was 12.5% in 2022, down 460 bps year over year. The underlying return on equity of 15.1% contracted 40 basis points year over year. The leverage ratio of 25.1% improved 40 bps year over year.
Dividend Update
On Feb 8, the company’s board of directors approved a dividend of 72 cents per share. The amount will be paid out on Mar 31, 2023 to shareholders of record at the close of business on Mar 1.
Zacks Rank
Sun Life currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2022 adjusted operating income of $2.99 per share, which missed the Zacks Consensus Estimate by 14.8%. RGA had incurred an operating loss of 56 cents per share in the prior-year quarter.
Operating revenues of $4.4 billion increased 2.2% year over year. The top line beat the Zacks Consensus Estimate by 1.2%. Net premiums of $3.4 billion rose 1.1% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2022 adjusted operating earnings of $2.18 per share, which surpassed the Zacks Consensus Estimate by 42.5%. The bottom line increased 14.7% year over year.
Adjusted operating revenues amounted to $1.5 billion, which decreased 4.4% year over year. Premiums totaled $610 million, up 12.1% from the year-ago quarter.
Aflac Incorporated (AFL - Free Report) reported fourth-quarter 2022 adjusted EPS of $1.29, which beat the Zacks Consensus Estimate of $1.21 and our estimate of $1.22. The bottom line increased 0.8% year over year.
Revenues dropped 26.2% year over year to $4,010 million in the quarter under review and were lower than our estimate of $4,467 million as well. The top line missed the consensus mark by 10.7%. Adjusted net investment income fell 5.9% year over year to $840 million.