Sun Life Financial Inc. (SLF Quick QuoteSLF - Free Report) delivered first-quarter 2024 underlying net income of $1.11 per share, which missed the Zacks Consensus Estimate by 7.5%. The bottom line decreased 0.9% year over year. Underlying net income was $643 million (C$875 million), which decreased 2.2% year over year.

Revenues of $5.1 billion decreased 37.5% year over year and missed the Zacks Consensus Estimate by 29.6%.

The quarterly results were affected by the sale of Sun Life UK, higher morbidity claims and the end of the Public Health Emergency in the United States.

Wealth sales & asset management gross flows of $34.5 billion (C$46.9 billion) increased 1.2% year over year. Group - Health & Protection sales of $388 million (C$528 million) improved 3.7% year over year. Individual - Protection sales of $556 million (C$757 million) jumped 48.1% year over year.

New business contractual service margin (CSM) was $255 million (C$347 million), up 50% year over year.

Segment Results

SLF Canada’s underlying net income decreased 1.9% year over year to $228 million (C$310 million). Canada witnessed soft results at Wealth & Asset Management and Individual - Protection.

Wealth sales & asset management gross flows of $3.6 billion ($5 billion) climbed 32% year over year. Group - Health & Protection increased year over year but Individual - Protection sales declined.

SLF U.S.’ underlying net income was $141 million, which decreased 20% year over year, reflecting soft results at Individual – Protection and Group - Health & Protection.

U.S. group sales of $142 million jumped 43%, driven by comparable Group Benefits sales and lower medicaid and commercial sales in dental due to large institutional sales in the prior year.

SLF Asset Management reported underlying net income of $207 million (C$282 million), which remained flat year over year, attributable to stable results in MFS and SLC Management. Asset Management exited the reported quarter with $0.8 trillion (C$1.1 trillion) of AUM, comprising $630 billion in MFS and $166 billion (C$226 billion) in SLC Management

SLF Asia reported underlying net income of $130 million (C$177 million), which grew 26% year over year, driven by solid results at Wealth & asset management and Individual - Protection.

Individual sales of $461 million (C$627 million) surged 67% year over year. Wealth sales & asset management gross flows of $1.5 billion ($2 billion) declined 4% year over year. New business CSM of $169 million (C$230 million) more than doubled year over year, primarily driven by sales in Hong Kong.

Financial Update  

Global assets under management were $1.1 billion (C$1.47 trillion), up 8% year over year.

Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 142% as of Mar 31, 2024, down 200 basis points (bps) from Mar 31, 2023, level.

The LICAT ratio for Sun Life (including cash and other liquid assets) was 148%, which remained flat year over year.

Sun Life’s return on equity was 15% in the first quarter of 2024, which contracted 160 bps year over year. The underlying return on equity of 16% contracted 130 bps year over year. The leverage ratio of 21.1% improved 210 bps from Mar 31, 2023, level.

Dividend Update

The company’s board of directors approved a 3% hike in its quarterly dividend to 81 cents per share. The amount will be paid out on Jun 28, 2024, to shareholders of record at the close of business on May 29.

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

Reinsurance Group of America, Incorporated (RGA Quick QuoteRGA - Free Report) reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA's operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.

Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.

Lincoln National Corporation (LNC Quick QuoteLNC - Free Report) reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.

Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.

Voya Financial, Inc. (VOYA Quick QuoteVOYA - Free Report) reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.

Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.