Sun Life building and Place Ville Marie, downtown Monteral

Sun Life Financial Inc. reported a net income of $749 million in the last quarter of 2023, down 36% from $1.165 billion during the same quarter a year earlier.

Earnings per share were $1.28, down from $1.98 a year ago.

Underlying net income for the quarter was $983 million, up from $892 million in the fourth quarter of 2022.

The insurer restated its 2022 results after adopting new international reporting standards.

As of Dec. 31, 2023, the company had $1.4 trillion of assets under management, up from $1.319 trillion the previous year. The 6% increase was driven by favourable market movements on the value of segregated, retail, institutional and managed funds, among other factors.

Canadian net income in the final quarter of 2023 dropped 32% to $348 million year-over-year, mainly due to unfavourable market-related impacts from interest rates and real estate values, as well as the Canada Recovery Dividend.

Wealth sales and asset management gross flows in Canada were up 32% to $5.4 billion, driven by higher individual wealth sales from mutual funds and defined benefit sales in group retirement solutions. At the same time, Canadian individual protection sales were up 23% to $171 million, primarily from higher participating whole life insurance sales.

On Feb. 1, 2023, Sun Life completed the acquisition of a majority stake of U.S. retail distribution firm Advisors Asset Management, Inc. On April 3, 2023, Sun Life also completed the sale of Sun Life UK to Phoenix Group Holdings plc.