Sun Life Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Sun Life Financial Inc. reported strong underlying net income growth in Asia and Canada, with increases of 17% and 6% respectively compared to the previous year [3] - The company experienced a 20% increase in Individual Protection sales and an 18% rise in new business Contractual Service Margin (CSM) [3] - Despite strong performance in certain segments, reported net income was impacted by market conditions and an impairment in the Vietnam business [4] Financial Performance - Underlying net income for Q4 2024 was $965 million, a decrease of 2$3,856 million [9][53] - Reported net income for Q4 2024 was $237 million, down 68$3,049 million, a decrease of 1% [9][53] - Underlying Return on Equity (ROE) was 16.5% for Q4 2024, down from 18.4% in Q4 2023, while reported ROE was 4.0% compared to 14.0% in the prior year [9][53] Business Segment Highlights - Asset Management: Underlying net income increased by 9% to $360 million, with reported net income rising by 10$326 million [12] - Canada: Underlying net income rose by 5% to $366 million, while reported net income decreased by 27$253 million due to market-related impacts [19] - U.S.: Underlying net income decreased by 39% to $115 million, with a reported net loss of$1 million compared to a net income of $77 million in the prior year [22] - **Asia**: Underlying net income increased by 22$175 million, but reported net income fell by 75% to $11 million due to an impairment charge [26] Growth Metrics - Total assets under management (AUM) reached$1.542 trillion, an increase of 10% or $142 billion from December 31, 2023 [9][71] - Wealth sales and asset management gross flows for Q4 2024 were$60.999 billion, a 33% increase year-over-year [66] - Group Health & Protection sales decreased by 13% from the previous year, while individual protection sales increased by 5% [67][68] Financial Strength - The Life Insurance Capital Adequacy Test (LICAT) ratio for Sun Life Financial Inc. was 152% at the end of Q4 2024, up from 149% in the previous year [5][11] - The financial leverage ratio was reported at 20.1%, a decrease from 21.5% in Q4 2023 [5][11] Strategic Initiatives - Sun Life launched various health solutions, including the Lumino Health Pharmacy App, which saw a 40% increase in registered users [20] - The company also expanded its capabilities in the U.S. with the Clinical 360+ program, enhancing member access to healthcare services [24]