Sun Life Financial Inc.’s net income rose approximately 6% for the second quarter ended June 30.
The Toronto-based financial services firm reported net income of $729 million for Q2, up from $689 million in the same quarter a year earlier.
The company says the increase came partially from business growth, though some factors that offset expansion were investment experience, expenses and the impact of the movement of the Canadian dollar during the quarter.
Earnings per share were $1.20, up from $1.12 a year prior.
The results outperformed analysts expectations, which were for net income of $705.75 million and earnings per share of $1.15, according to Thomson Reuters Eikon.
The company’s quarterly dividend will remain 47.5 cents per common share, the same as was paid in the previous quarter.
Sun Life Financial reported total assets under management of $986 billion in the quarter, up from nearly $944 billion a year earlier.
Being cautious amid trade uncertainty
Sun Life Financial Inc. says its investor clients are “cautious” amid a shaky trade backdrop.
Sun Life CEO Dean Connor says clients of its MFS investment management arm are `”sitting on their hands” due to the uncertainty surrounding trade.
Connor told analysts on a conference call today that net outflows from MFS were “outsized” at US$11.5 billion, reflecting some derisking.
Sun Life Financial Canada
Sun Life Canada (SLF Canada) reported net income of $262 million in the second quarter, a rise of $77 million or 42% from a year earlier, the company says in a press release. SLF Canada’s sales of insurance rose 16%, it adds, due to strong sales in individual insurance and group benefits.
Individual wealth sales increased 7%, compared with Q2 2017, due to “continued growth” of in-house product. However, overall wealth sales for SLF Canada decreased 20%, “mainly due to a large-case sale in GRS [group retirement services] in 2017,” the press release said.
SLF Canada’s group retirement services business reported more than $100 billion assets under administration for the second quarter, the release added, which the company calls “a milestone.”
Sun Life Financial Asset Management
Sun Life Financial AM reported net income of $214 million, up 17% from a year earlier. The increase was “largely driven by higher average net assets and the lower income tax rate in the U.S., partially offset by the impact of the movement of the Canadian dollar and lower returns on seed capital,” the release said.
Sun Life Financial AM reported $684 billion in assets under management, compared to $655.3 billion a year earlier.
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