We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Q2 Earnings Match Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
Key Takeaways
SLF Q2 underlying EPS of $1.29 matched estimates; net income rose 0.3% on Asia growth, higher fee income.
Revenues grew 2% YoY to $6.6B but missed estimates; wealth sales & AUM gross flows rose 12.7% to $38.1B.
Asia delivered record underlying net income that grew 13.7% on higher sales, AUM and investment contributions.
Sun Life Financial Inc. (SLF - Free Report) delivered second-quarter 2025 underlying net income of $1.29 per share, which matched the Zacks Consensus Estimate. The bottom line increased 3.2% year over year. Underlying net income was $733 million (C$1 billion), which increased 0.3% year over year. The increase reflects strong capital raising, and higher fee income in Asia from higher AUM, improved U.S. Dental results, higher fee income and management actions, and favorable mortality experience in Canada.
Results reflected a record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings.
Revenues of $6.6 billion increased 2% year over year but missed the Zacks Consensus Estimate by 9.3%.
Wealth sales & asset management gross flows of $38.1 billion (C$52.7 billion) increased 12.7% year over year. Group - Health & Protection sales of $386.5 million (C$535 million) rose 6.6% year over year. Individual - Protection sales of $623.6 million (C$863 million) jumped 13.3% year over year.
New business contractual service margin (CSM) was $314.3 million (C$435 million), down 1.5% year over year.
Sun Life Financial Inc. Price, Consensus and EPS Surprise
SLF Canada’s underlying net income decreased 6.8% year over year to $274 million (C$379 million). Lower investment contributions reflected relatively lower yields on investment contracts at Asset management & wealth and unfavorable mortality experience at Individual - Protection.
Asset management gross flows & wealth sales decreased 13%, due to lower defined benefit solution sales in Group Retirement Services (GRS), reflecting a $1.2 billion transaction in the prior year. It was partially offset by higher defined contribution sales in GRS from higher large case sales. Group - Health & Protection sales of $201 million were up 41%, driven by higher large case sales. Individual - Protection sales of $136 million were down 19%, reflecting lower third-party sales.
SLF U.S.’ underlying net income was $143 million, which decreased 4% year over year, reflecting unfavorable mortality and credit experience at Individual – Protection.
U.S. group sales of $226 million were down 7% due to lower medical stop-loss sales in Group Benefits, reflecting pricing discipline in a competitive market. It was partially offset by higher Medicaid and commercial sales in Dental.
SLF Asset Management reported underlying net income of $216.7 million (C$300 million), which decreased 3.4% year over year, attributable to lower fee income from lower ANA. Asset Management exited the reported quarter with $805 billion (C$1.11 trillion) of AUM, comprising $635 billion in MFS and $180.6 billion (C$250 billion) in SLC Management.
SLF Asia reported underlying net income of $148.8 million (C$206 million), which grew 13.7% year over year, driven by higher fee income due to higher AUM reflecting market movements and net inflows at Asset management & wealth. Good sales momentum and in-force business growth, and higher investment contributions at Individual - Protection. It was partially offset by higher expenses reflecting continued investments in the business.
Individual sales of $727 million grew 24%, driven by higher sales in Hong Kong from growth across all channels; Indonesia from the bancassurance channel; and India from the agency and bancassurance channels. Asset management gross flows & wealth sales rose 25% to $3 billion, driven by higher fixed income fund sales in India.
New business CSM of $216 million (C$299 million) increased 34.3% year over year, primarily driven by strong profit margins and higher sales in Hong Kong.
Financial Update
Global assets under management were $1.13 trillion (C$1.54 trillion), up 2.7% year over year.
Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 141% as of June 30, 2025, down 100 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 151%, which expanded 100 bps year over year.
Sun Life’s return on equity was 12.4% in the second quarter of 2025, which expanded 70 bps year over year. The underlying return on equity of 17.6% contracted 50 bps year over year. The leverage ratio of 20.4% improved 220 bps year over year.
Dividend Update
The company’s board of directors approved a quarterly dividend of 88 cents per share. The amount will be paid out on Sept. 29, 2025, to shareholders of record at the close of business on Aug. 27.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. The bottom line decreased 13.9% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 12 cents per share on adjusted operating income compared with the prior year. RGA's operating revenues of $5.6 billion improved 9.6% year over year. It missed the consensus estimate by 1.1%. Net premiums of $4.2 billion increased 5.9% year over year.
Investment income and net of related expenses increased 30.1% from the prior-year quarter to $1.4 billion. The average investment yield increased 66 basis points to 5.3%. Total benefits and expenses at Reinsurance Group climbed 14.1% year over year to $5.2 billion.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year. Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year. Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
Lincoln National Corporation (LNC - Free Report) reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%. The bottom line climbed 28.3% year over year. Adjusted operating revenues grew 4.4% year over year to $4.7 billion. The top line surpassed the consensus mark by 1.2%. LNC’s estimated RBC ratio rose to more than 420% at the second-quarter end. Insurance premiums advanced 3.5% year over year to $1.7 billion, higher than the Zacks Consensus Estimate by 0.3%.
Fee income was $1.3 billion, which improved 0.1% year over year but missed the consensus mark by 1%. Net investment income advanced 10.1% year over year to $1.5 billion, which beat the consensus mark of $1.4 billion. Meanwhile, other revenues of $197 million rose 1.5% year over year in the quarter under review. Total expenses declined 21.2% year over year to $3.2 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sun Life Q2 Earnings Match Estimates, Revenues Increase Y/Y
Key Takeaways
Sun Life Financial Inc. (SLF - Free Report) delivered second-quarter 2025 underlying net income of $1.29 per share, which matched the Zacks Consensus Estimate. The bottom line increased 3.2% year over year. Underlying net income was $733 million (C$1 billion), which increased 0.3% year over year. The increase reflects strong capital raising, and higher fee income in Asia from higher AUM, improved U.S. Dental results, higher fee income and management actions, and favorable mortality experience in Canada.
Results reflected a record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings.
Revenues of $6.6 billion increased 2% year over year but missed the Zacks Consensus Estimate by 9.3%.
Wealth sales & asset management gross flows of $38.1 billion (C$52.7 billion) increased 12.7% year over year. Group - Health & Protection sales of $386.5 million (C$535 million) rose 6.6% year over year. Individual - Protection sales of $623.6 million (C$863 million) jumped 13.3% year over year.
New business contractual service margin (CSM) was $314.3 million (C$435 million), down 1.5% year over year.
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 decreased 6.8% year over year to $274 million (C$379 million). Lower investment contributions reflected relatively lower yields on investment contracts at Asset management & wealth and unfavorable mortality experience at Individual - Protection.
Asset management gross flows & wealth sales decreased 13%, due to lower defined benefit solution sales in Group Retirement Services (GRS), reflecting a $1.2 billion transaction in the prior year. It was partially offset by higher defined contribution sales in GRS from higher large case sales. Group - Health & Protection sales of $201 million were up 41%, driven by higher large case sales. Individual - Protection sales of $136 million were down 19%, reflecting lower third-party sales.
SLF U.S.’ underlying net income was $143 million, which decreased 4% year over year, reflecting unfavorable mortality and credit experience at Individual – Protection.
U.S. group sales of $226 million were down 7% due to lower medical stop-loss sales in Group Benefits, reflecting pricing discipline in a competitive market. It was partially offset by higher Medicaid and commercial sales in Dental.
SLF Asset Management reported underlying net income of $216.7 million (C$300 million), which decreased 3.4% year over year, attributable to lower fee income from lower ANA. Asset Management exited the reported quarter with $805 billion (C$1.11 trillion) of AUM, comprising $635 billion in MFS and $180.6 billion (C$250 billion) in SLC Management.
SLF Asia reported underlying net income of $148.8 million (C$206 million), which grew 13.7% year over year, driven by higher fee income due to higher AUM reflecting market movements and net inflows at Asset management & wealth. Good sales momentum and in-force business growth, and higher investment contributions at Individual - Protection. It was partially offset by higher expenses reflecting continued investments in the business.
Individual sales of $727 million grew 24%, driven by higher sales in Hong Kong from growth across all channels; Indonesia from the bancassurance channel; and India from the agency and bancassurance channels. Asset management gross flows & wealth sales rose 25% to $3 billion, driven by higher fixed income fund sales in India.
New business CSM of $216 million (C$299 million) increased 34.3% year over year, primarily driven by strong profit margins and higher sales in Hong Kong.
Financial Update
Global assets under management were $1.13 trillion (C$1.54 trillion), up 2.7% year over year.
Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 141% as of June 30, 2025, down 100 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 151%, which expanded 100 bps year over year.
Sun Life’s return on equity was 12.4% in the second quarter of 2025, which expanded 70 bps year over year. The underlying return on equity of 17.6% contracted 50 bps year over year. The leverage ratio of 20.4% improved 220 bps year over year.
Dividend Update
The company’s board of directors approved a quarterly dividend of 88 cents per share. The amount will be paid out on Sept. 29, 2025, to shareholders of record at the close of business on Aug. 27.
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 Life Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. The bottom line decreased 13.9% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 12 cents per share on adjusted operating income compared with the prior year. RGA's operating revenues of $5.6 billion improved 9.6% year over year. It missed the consensus estimate by 1.1%. Net premiums of $4.2 billion increased 5.9% year over year.
Investment income and net of related expenses increased 30.1% from the prior-year quarter to $1.4 billion. The average investment yield increased 66 basis points to 5.3%. Total benefits and expenses at Reinsurance Group climbed 14.1% year over year to $5.2 billion.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year. Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year. Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
Lincoln National Corporation (LNC - Free Report) reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%. The bottom line climbed 28.3% year over year. Adjusted operating revenues grew 4.4% year over year to $4.7 billion. The top line surpassed the consensus mark by 1.2%. LNC’s estimated RBC ratio rose to more than 420% at the second-quarter end. Insurance premiums advanced 3.5% year over year to $1.7 billion, higher than the Zacks Consensus Estimate by 0.3%.
Fee income was $1.3 billion, which improved 0.1% year over year but missed the consensus mark by 1%. Net investment income advanced 10.1% year over year to $1.5 billion, which beat the consensus mark of $1.4 billion. Meanwhile, other revenues of $197 million rose 1.5% year over year in the quarter under review. Total expenses declined 21.2% year over year to $3.2 billion.