Sun Life Financial Services of Canada Inc. today reported shareholder net income of $215 million for the quarter ending September 30, an increase of 6% over the $203 million earned in the same period in 2000.

Earnings per share of $0.51 were up 6% from the 48¢ per share earned in the third quarter a year ago. Expense savings relative to the second quarter, more than offset the earnings impact of an 11% decline in revenues.

Revenues for the quarter were $3,526 million, compared with $3,945 million in the second quarter of 2001.

Assets under management were $299.2 billion at quarter end, a decrease of 8% compared with the $326.4 billion at June 30, and a decline of 13% relative to assets of $344.8 billion at September 30, 2000.

Return on equity was 12.1%in the third quarter, down from 12.3% in the second quarter of 2001.

“Sun Life Financial maintained solid earnings momentum in the third quarter despite a number of significant challenges confronting financial services firms especially those with our focus on wealth management,” said Donald Stewart, chairman and CEO.

“The company’s solid performance during this difficult period is a credit to our balanced business profile with its strategic diversity of protection and wealth management businesses.”

C. James Prieur, president and COO observed, “Our U.S. Annuity and Insurance business line had a strong quarter earning $55 million, more than double that unit’s earnings of the second quarter. Individual Life lead this US performance with earnings of $33 million for the quarter, up more than 30 per cent from the second quarter. MFS Investment Management earned $58 million in the third quarter, down 11 per cent from the $65 million earned in the second quarter. This earnings decline resulted from the impact that retreating equity markets had on MFS’ revenues. Nevertheless, MFS continued to record enviable net funds inflows of $3.9 billion for the quarter, which compares very favourably to the net redemptions experienced by much of the investment management industry.”

Sun Life’s board of directors approved a 12¢ per share dividend to shareholders of record on November 19.