(April 25 – 11:50 ET) – Sun Life Financial Services of Canada Inc. is reporting improved earnings for the first the quarter ending March 31. The demutualized insurance company says shareholder net income for the quarter was $202 million for , an increase of 12% over the $181 million earned in the same period in 2000.

Earnings per share of 48¢ were up 7% from the 45¢ a share earned in the first quarter a year ago. Revenues for the quarter were $4.3 billion, compared with $3.7 billion in the first quarter of 2000, an increase of 16%.

Assets under management were $316 billion at quarter end, a decline of 2% compared with the $321 billion at the end of the first quarter of 2000, and a decline of 4% relative to assets of $329 billion at Dec. 31, 2000.

“Sun Life Financial’s ability to produce solid earnings despite severe declines in international equity markets shows the strength and resiliency of our diversified business portfolio,” said Donald Stewart, chairman and CEO.

James Prieur, president and COO commented, “In a quarter when much of the asset management industry in the United States experienced net redemptions, MFS not only achieved solid net sales, but actually increased net sales by 97% relative to the first quarter in 2000 and 55% relative to the fourth quarter of 2000 establishing a new record for quarterly inflows.”

Paul Derksen, executive vice president and CFO said, “Operating expenses declined by $41 million or 6% in the first quarter relative to the level reported in the fourth quarter of 2000. This is a significant accomplishment given the 7% growth in revenues achieved over the same time period.”

Sun Life declared a quarterly shareholder dividend of 12¢ a share.