Sun Life Financial Inc. says it earned $722 million in net income during the fourth quarter.
That compares with a profit of $237 million in the same quarter a year ago, when the Toronto-based insurer took a $186 million writedown and had lower-than-expected investment income.
Diluted underlying earnings per share worked out to $1.96 for the period ended Dec. 31, up from $1.68 during the prior year quarter.
Underlying net income was $1.1 billion for the fourth quarter, up from $965 million in the same quarter in 2024.
“We saw robust earnings and sales in Asia, solid wealth sales in Canada,” Kevin Strain, CEO of Sun Life, said in a statement. “We’re also pleased with the earnings and sales growth in our U.S. stop-loss business.”
The Canadian division posted net income of $417 million for the quarter, up from $366 million a year prior.
The increase was driven by an improved credit experience and higher fee income in asset management and wealth, along with a favourable insurance experience in individual protection. In group health and protection, favourable mortality experience and business growth was offset by unfavourable morbidity.
Asset management gross flows and wealth sales in Canada of $7.2 billion were up 46% on a quarterly basis, driven by group retirement and higher mutual fund sales in individual wealth. Group retirement sales reflected strong defined benefit solution sales and a large case sale.
Group health and protection sales in Canada of $95 million were up 8% compared to the fourth quarter of 2024, with higher health product sales. However, individual protection sales were down 6% to $133 million, mainly from lower participating life sales, which were partly offset by strong non-participating life sales.
Sun Life had $1.6 trillion in assets under management globally as of Dec. 31, up 4% on a year-over-year basis.
Its dividend of 92 cents remained unchanged from the third quarter.
— With files from the Canadian Press