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Sun Life Q1 Earnings Top Estimates, Revenues Fall Y/Y, Dividend Raised
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Key Takeaways
SLF beat Q1 estimates as Asia and Canada drove underlying net income growth.
Sun Life raised its quarterly dividend 4.3% to 96 cents per share payable on June 30, 2026.
SLF's global AUM rose 4.6% year over year to $1.12 trillion as of March 31, 2026.
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year, driven by strong performance in Asia, reflecting business growth in Hong Kong and Canada from higher fee income driven by higher AUM. The increase was offset by lower results in Sun Life Asset Management, reflecting lower catch-up fees and net seed investment income at SLC Management, higher financing costs in Corporate, and the unfavorable impacts from foreign exchange translation.
Revenues of $6.4 billion decreased 18.9% year over year.
The quarterly results reflected higher premiums, favorable net investment results, higher sales and in-force business growth across the segments.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year.
New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.
Sun Life Financial Inc. Price, Consensus and EPS Surprise
SLF Canada’s underlying net income was $270 million (C$370 million). Canada witnessed business growth that reflected higher premiums in Sun Life Health, higher fee income from higher AUM and favorable net investment results. It was partially offset by less favorable insurance experience.
Asset management gross flows & Wealth sales of $4.3 billion ($6 billion) decreased 4.4% year over year. The decrease was due to lower large case sales compared to a strong prior year in Group Wealth defined contributions. It was offset by higher mutual fund sales in Individual Wealth and increased rollover volumes in Group Wealth.
SLF U.S.’ underlying net income was $160 million, which increased 6% year over year, driven by higher results in In-force Management, reflecting favorable net investment results. It was offset by lower earnings in Dental, driven by lower revenues and the impact of a retroactive premium payment in the prior year.
U.S. group sales of $160 million grew 30% year over year. The increase was due to higher medical stop-loss sales in Group Benefits reflecting disciplined pricing, strong close rates and favorable market conditions and higher commercial and Medicare Advantage sales in Dental.
SLF Asset Management reported underlying net income of $265 million, which decreased 3% year over year. This was due to poor results in SLC Management, which was down $27 million, reflecting lower net seed investment income and fee-related earnings, which decreased 25%, driven by higher catch-up fees in the prior year. It was partially offset by lower expenses.
Asset Management exited the reported quarter with $867.8 billion of AUM, comprising $622.2 billion in MFS, $188.9 billion in SLC Management, and $56.7 billion in Solutions & Other.
SLF Asia reported underlying net income of $157 million (C$216 million). Asia witnessed strong sales momentum and in-force business growth in Hong Kong, and lower expenses and favorable net investment results. It was partially offset by lower fee income from the transition of the administration business to the centralized eMPF platform in Hong Kong.
Individual insurance sales grew year over year, reflecting higher sales in Hong Kong across all channels, with positive momentum in Joint Venture and High Net Worth businesses. Asset management gross flows and wealth sales are reflecting higher Mandatory Provident Fund (MPF) sales in Hong Kong and higher group fund sales in India.
New business CSM of $233 million (C$320 million) increased 23% year over year, primarily driven by higher sales, partially offset by an increasing competitive environment, primarily in Hong Kong.
Financial Update
As of March 31, 2026, Global assets under management increased 4.6% year over year to $1.12 trillion (C$1.57 trillion).
Sun Life’s Life Insurance Capital Adequacy Test (LICAT) ratio was 134% as of March 31, 2026, down 700 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 143%, which contracted 600 basis points year over year.
Sun Life’s return on equity was 8.2% in the first quarter of 2026, which contracted 750 bps year over year. The underlying return on equity of 18.6% expanded 90 bps year over year. The leverage ratio of 23.2% expanded 310 basis points year over year.
Dividend Update of Sun Life
The company’s board of directors approved a 4.3% hike in its quarterly dividend to 96 cents per share. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, and assets under administration and advisement totaled $1.1 trillion.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims, and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, including assets under administration of $1.8 trillion.
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Sun Life Q1 Earnings Top Estimates, Revenues Fall Y/Y, Dividend Raised
Key Takeaways
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year, driven by strong performance in Asia, reflecting business growth in Hong Kong and Canada from higher fee income driven by higher AUM. The increase was offset by lower results in Sun Life Asset Management, reflecting lower catch-up fees and net seed investment income at SLC Management, higher financing costs in Corporate, and the unfavorable impacts from foreign exchange translation.
Revenues of $6.4 billion decreased 18.9% year over year.
The quarterly results reflected higher premiums, favorable net investment results, higher sales and in-force business growth across the segments.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year.
New business contractual service margin (CSM) was $313 million (C$429 million), up 11% 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 of SLF
SLF Canada’s underlying net income was $270 million (C$370 million). Canada witnessed business growth that reflected higher premiums in Sun Life Health, higher fee income from higher AUM and favorable net investment results. It was partially offset by less favorable insurance experience.
Asset management gross flows & Wealth sales of $4.3 billion ($6 billion) decreased 4.4% year over year. The decrease was due to lower large case sales compared to a strong prior year in Group Wealth defined contributions. It was offset by higher mutual fund sales in Individual Wealth and increased rollover volumes in Group Wealth.
SLF U.S.’ underlying net income was $160 million, which increased 6% year over year, driven by higher results in In-force Management, reflecting favorable net investment results. It was offset by lower earnings in Dental, driven by lower revenues and the impact of a retroactive premium payment in the prior year.
U.S. group sales of $160 million grew 30% year over year. The increase was due to higher medical stop-loss sales in Group Benefits reflecting disciplined pricing, strong close rates and favorable market conditions and higher commercial and Medicare Advantage sales in Dental.
SLF Asset Management reported underlying net income of $265 million, which decreased 3% year over year. This was due to poor results in SLC Management, which was down $27 million, reflecting lower net seed investment income and fee-related earnings, which decreased 25%, driven by higher catch-up fees in the prior year. It was partially offset by lower expenses.
Asset Management exited the reported quarter with $867.8 billion of AUM, comprising $622.2 billion in MFS, $188.9 billion in SLC Management, and $56.7 billion in Solutions & Other.
SLF Asia reported underlying net income of $157 million (C$216 million). Asia witnessed strong sales momentum and in-force business growth in Hong Kong, and lower expenses and favorable net investment results. It was partially offset by lower fee income from the transition of the administration business to the centralized eMPF platform in Hong Kong.
Individual insurance sales grew year over year, reflecting higher sales in Hong Kong across all channels, with positive momentum in Joint Venture and High Net Worth businesses. Asset management gross flows and wealth sales are reflecting higher Mandatory Provident Fund (MPF) sales in Hong Kong and higher group fund sales in India.
New business CSM of $233 million (C$320 million) increased 23% year over year, primarily driven by higher sales, partially offset by an increasing competitive environment, primarily in Hong Kong.
Financial Update
As of March 31, 2026, Global assets under management increased 4.6% year over year to $1.12 trillion (C$1.57 trillion).
Sun Life’s Life Insurance Capital Adequacy Test (LICAT) ratio was 134% as of March 31, 2026, down 700 basis points (bps) year over year.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 143%, which contracted 600 basis points year over year.
Sun Life’s return on equity was 8.2% in the first quarter of 2026, which contracted 750 bps year over year. The underlying return on equity of 18.6% expanded 90 bps year over year. The leverage ratio of 23.2% expanded 310 basis points year over year.
Dividend Update of Sun Life
The company’s board of directors approved a 4.3% hike in its quarterly dividend to 96 cents per share. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27.
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
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, and assets under administration and advisement totaled $1.1 trillion.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims, and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, including assets under administration of $1.8 trillion.