Sun Life Financial Inc. reported $1.1 billion in net income during the third quarter, down from $1.35 billion during the same period a year earlier.
The 18% decline was driven by a prior year decrease in Sun Life Capital Management’s estimated acquisition-related liabilities, unfavourable assumption changes and management action impacts, and negative market impacts from Asia and real estate, among other factors.
Earnings for the period ended Sept. 30 worked out to $1.97 per share, down from $2.33 per share a year ago.
The Toronto-based insurer says assets under management reached $1.6 trillion, rising by 7% from the same period last year.
The company also raised its common share dividend to 92 cents per share, up from 88 cents per share.
Sun Life’s Canadian operations posted an underlying net income of $422 million for the quarter, up $47 million from the same period last year. This was driven by improved credit experience and higher fee income in asset management and wealth (up $19 million), business growth and favourable insurance and credit experience in group health and protection (up $25 million), and higher investment earnings in individual protection (up $3 million).
In Canada, the insurer’s asset management gross flows and net sales of $4 billion were up 9%, mainly from mutual fund sales in individual wealth and higher rollover volumes in group retirement services, partially offset by lower defined benefit group sales. Group health and protection sales of $98 million were down 21% from the timing of large case sales. Individual protection sales were up 16% to $130 million, driven by higher non-participating life sales.
Sun Life CEO Kevin Strain said the company’s latest results reflect strong underlying net income in both Canada and Asia.
But he says U.S. businesses were “challenged.”
—With files from The Canadian Press