(May 10 – 15:15 ET) – Sun Life Financial Services of Canada Inc. has released its financial results for the quarter ending March 31, 2000. It is reporting significantly improved net income of $197 million, an increase of 55% from the $127 million reported over the same period in 1999.
“This quarter shows solid performance trends across our major North American operating units,” said Donald A. Stewart, chairman and chief executive officer. “The restructuring of our U.K. operations is on track to meet its performance targets as originally scheduled.”
Assets under management rose to $321 billion at March 31, 2000, an increase of $20 billion or 7% from the $301 billion recorded on December 31, 1999 and $67 billion, or 26%, from the $254 billion recorded at March 31, 1999
Total revenue in the first quarter was $3.7 billion, 5% higher than the $3.6 billion recorded in the first quarter of 1999. This performance was primarily driven by continued strong growth in fee income from the company’s wealth management businesses. Fee income increased 30% to $782 million from $602 million for the same period last year.
Since the company’s conversion to a publicly held structure took place only 10 days prior to the end of the quarter, the results for the first quarter include earnings as a mutual company. Results for the period as a mutual company are greater, by $16 million, than would have been reported as a stock company.
In Canada, pro forma adjusted earnings were $35 million compared to $27 million in the first quarter of 1999, an improvement of $8 million, or 30%. Canadian protection businesses reported higher earnings as stronger pricing in group businesses, as well as favourable mortality and morbidity experience contributed to improved returns.
Earnings growth also included strong performance in our Canadian wealth management business, with both Spectrum United and McLean Budden reporting solid results for the quarter.
-IE Staff