Sun Life beats profit estimates on strong growth in Canada, Asia
New throughout, adds details, compares profit with analysts' average estimate
Aug 12 (Reuters) - SunLife Financial SLF.TO, Canada's second-largest life insurer, on Monday beat analysts' estimates for quarterly profitboosted by strong sales at homeand in Asia, a key growth market.
The results follow earnings from biggerrival Manulife Financial MFC.TO, which also beatanalysts' estimates driven by strong growth in Asia, where both compete formarket share.
Sun Life earned C$1.72 ($1.25) per share, surpassing the average estimate of C$1.58 per share, according to LSEG data. Its underlying net income rose 8.7% to C$1 billion.
"These results reflect continued solid growth in Canada and Asia," CEO Kevin Strain said.
Sun Life has said it would focus on partnerships to expand in Asian markets, a key playground for Canada's biggest life insurance companies as they look for global exposure.
Sun Life, a major insurer and asset manager that is also increasingly pushing into health-care services, has inked several deals in Asia, including those with Hong Kong-based virtual insurer Bowtie and a bancassurance deal with Dah Sing Bank.
Core earnings from Asia rose 19% and in Canada they rose 8%.
The U.S business however reported a 5% decrease in core earnings hurt by challenges in its Dental insurance segment reflecting the impact of Medicaid redeterminations and the end of the Public Health Emergency.
Underlying earnings from wealth asset management segment, which contribute about 45% of overall earnings, rose 9% helped by higher fees.
The group health and protection businesses fell 15% while individual insurance sales rose 31%.
($1 = 1.3741 Canadian dollars)
Reporting by Jaiveer Singh Shekhawat in Bengaluru and Nivedita Balu in Toronto; Editing by Pooja Desai and David Gregorio
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
