Sun Life Financial Inc. (SLF Quick QuoteSLF - Free Report) delivered a third-quarter 2024 underlying net income of $1.29 per share, which beat the Zacks Consensus Estimate by 3.2%. Moreover, the bottom line increased 8.4% year over year.  

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The underlying net income was reported at $744.73 million (C$1,016 million), which increased 7.4% year over year.

Wealth sales & asset management gross flows increased 4.8% year over year to $30.72 billion (C$41.91 billion) in the quarter under review.

The new business contractual service margin was $280.74 million (C$383 million), up 1.8% year over year.

Segment Results

SLF Canada’s underlying net income increased 9.1% year over year to $274.87 million (C$375 million), driven by business growth and higher fee-based income, higher investment contributions.

SLF U.S.’ underlying net income was $161 million, which increased 15% year over year. The rise was driven by strong business growth in Group Benefits and improved group life mortality experience, partially offset by lower Dental results. Higher net investment results also added to the upside, including a partial offset from unfavorable credit experience.

SLF Asset Management reported an underlying net income of $252.15 million (C$344 million), which grew 2.5% year over year. Asset Management witnessed higher fee income from higher average net assets, partially offset by higher expenses. Fee-related earnings increased 6%, driven by higher AUM, reflecting strong capital raising and deployment across the platform, partially offset by higher expenses.

SLF Asia reported an underlying net income of $124.61 million (C$170 million), which grew 0.7% year over year. Asia witnessed higher fee income, primarily driven by higher AUM, improved sales momentum and in-force business growth, and contributions from joint ventures.

Financial Update  

Global assets under management were $1.11 trillion (C$1,515 billion), up 14.7% year over year.

Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 147% as of Sept. 30, 2024, which expanded 900 basis points (bps) from Jan. 1, 2023.

The LICAT ratio for Sun Life (including cash and other liquid assets) was 152%, which expanded 500 bps year over year.

Sun Life’s return on equity was 23.8% in the third quarter, which expanded 720 bps year over year. The underlying return on equity of 17.9% expanded 20 bps year over year.

The leverage ratio of 20.4% improved 140 bps year over year.

Dividend Update

In the reported quarter, the company’s board of directors increased its dividend by 3.7% to 84 cents per share.

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 third-quarter 2024 adjusted operating earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 19%. Moreover, the bottom line increased 10% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable effect of 2 cents per share on adjusted operating income.

RGA's operating revenues of $5.7 billion beat the Zacks Consensus Estimate by 13.8%. The top line also improved 8.5% year over year due to higher net premiums. Net premiums of $4.4 billion rose 3.2% year over year. Investment income increased 28.8% from the prior-year quarter to $1.2 billion. The average investment yield increased to 5.08% in the third quarter from 4.72% in the prior-year period due to higher new money rates. Total benefits and expenses at Reinsurance Group increased 14% year over year to $5.4 billion.

Voya Financial, Inc. (VOYA Quick QuoteVOYA - Free Report) reported third-quarter 2024 adjusted operating earnings of $2.12   2.07 per share, which beat the Zacks Consensus Estimate by about 4.8%. The bottom line increased 2.4% year over year. Adjusted operating revenues amounted to $1.97 billion, which increased 7.6% year over year. The increase was driven by higher fee income, premiums and other revenues.

Net investment income decreased 7.5% year over year to $506 million. Meanwhile, fee income of $489 million increased 10.4% year over year. Premiums totaled $796 million, up 16.7% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 11.4% from the year-ago quarter. As of Sep 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $391.6 million.

Chubb Limited (CB Quick QuoteCB - Free Report) reported third-quarter 2024 core operating income of $5.72 per share, which outpaced the Zacks Consensus Estimate by 16%. The bottom line increased 15.6% year over year. Net premiums written improved 5.5% year over year to $13.8 billion in the quarter. Our estimate and the Zacks Consensus Estimate were both pegged at $14.3 billion. Pre-tax net investment income was $1.5 billion, up 14.7% year over year. The figure matched both the Zacks Consensus Estimate as well as our estimate.

Revenues of $15 billion missed the consensus estimate by 1.5% and improved 6.5% year over year. Property and casualty (P&C) underwriting income was $1.4 billion, up 11.7% year over year. The Zacks Consensus Estimate was pegged at $1.1 billion. Chubb incurred a pre-tax P&C catastrophe loss, net of reinsurance and including reinstatement premiums of $765 million, which was wider than the year-ago catastrophe loss of $670 million.