(November 1 – 18:30 ET) – Sun Life Financial Services of Canada Inc. is reporting record earnings for the third quarter ending September 30.
Net income for the quarter was $203 million, a jump of 38% over the period a year ago. Earnings per share were 48¢, up 26% from a year ago. For the first nine months of 2000, net income totalled $581 million, an increase of 17% over the first nine months of 1999.
“We are pleased to report continuing progress in growing the earnings power of Sun Life Financial,” said Donald A. Stewart, chairman and CEO. “The record earnings achieved in the third quarter are the cumulative result of continuing revenue growth as well as enhanced profitability in both our Canadian and U.S. operations.”
The solid results led the insurance company’s board of directors to declare a 12¢ a share dividend. It’s the first shareholder dividend to be paid since Sun Life’s IPO last March.
Total assets under management grew by 30% during the quarter to $345 billion. Revenue rose by 16% to $4.3 billion. Shareholder return on equity was 12.8%, up from 10.1% in the third quarter of 1999.
Canadian operations earned $45 million in the third quarter, an increase of $2 million. Sun Life says Group Life and Health earnings jumped as improved pricing in long-term disability and effective claims management produced a $13 million increase in earnings compared to last year.
Spectrum Investments earned $7 million in the quarter, representing a 75% increase relative to the $4 million earned in 1999’s third quarter.
Individual Life earned only $3 million in the third quarter compared with the $12 million earned in the third quarter of 1999. However Sun Life reports that sales were up by 19% relative to the same period a year ago, reflecting strong sales in the Universal Life product.
-IE Staff