SUN Life Financial, Canada’s second-largest life insurer, on Monday (Aug 12) beat analysts’ estimates for quarterly profit boosted by strong sales at home and in Asia, a key growth market.
The results follow earnings from bigger rival Manulife Financial, which also beat analysts’ estimates driven by strong growth in Asia, where both compete for market share.
Sun Life earned C$1.72 per share, surpassing the average estimate of C$1.58 per share, according to LSEG data. Its underlying net income rose 8.7 per cent to C$1 billion (S$963 million).
“These results reflect continued solid growth in Canada and Asia,” CEO Kevin Strain said.
Sun Life has said it would focus on partnerships to expand in Asian markets, a key playground for Canada’s biggest life insurance companies as they look for global exposure.
Sun Life, a major insurer and asset manager that is also increasingly pushing into healthcare services, has inked several deals in Asia, including those with Hong Kong-based virtual insurer Bowtie and a bancassurance deal with Dah Sing Bank.
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Core earnings from Asia rose 19 per cent and in Canada, they rose 8 per cent.
The US business however reported a 5 per cent decrease in core earnings hurt by challenges in its Dental insurance segment reflecting the impact of Medicaid redeterminations and the end of the Public Health Emergency.
Underlying earnings from the wealth asset management segment, which contribute about 45 per cent of overall earnings, rose 9 per cent helped by higher fees.
The group health and protection businesses fell 15 per cent while individual insurance sales rose 31 per cent. REUTERS
