Sun Life financial reported net income of $567 million for the third quarter of 2018, a 31% decline from the same period a year ago, while underlying net income of $730 million was up 14%.
“In the third quarter, underlying net income was strong at $730 million, and return on equity was 14%, at the high end of our target range,” said Sun Life Financial president and CEO Dean Connor in a statement.
The $250 million decrease in reported net income was largely due to revised assumptions about market performance, interest rates, asset default, mortality and other factors, the company Wednesday.
The U.S. market saw the largest decline—a net loss of $267 million in the quarter compared to a $72 million gain over the same period in 2017.
SLF’s global asset management division performed well in Q3, reporting underlying net income of $251 million, up 23% from 2017. The company attributed the increase to lower income tax in the U.S., expense management and higher average net assets.
Canadian profits declined by $5 million to $335 million in the third quarter compared to 2017. Insurance sales were down 6% in SLF’s home market, while wealth sales declined 2% year over year due to group retirement services sales, the company said. Individual wealth sales in Canada increased by 15%.
SLF reported net income of $164 million in Asia, down from $216 million a year ago. Insurance sales in Asia were up 7% year over year driven by growth in India and the Philippines, the company said.
SLF also announced a 5% increase to its common share dividend to 50 cents.