Sun Life Reports Third Quarter 2025 Results

Core Insights - Sun Life Financial Inc. reported strong Q3 2025 results, highlighting a balanced and diversified business strategy with notable performance in Canada and Asia, despite challenges in the U.S. market [3][4][12] - The company achieved an underlying net income of $1,047 million, a 3% increase from Q3 2024, while reported net income decreased by 18% to $1,106 million [5][12] - A significant increase in assets under management (AUM) to $1,623 billion, reflecting a 7% growth year-over-year [5][12] Financial Performance - Underlying net income for Q3 2025 was $1,047 million, up $31 million or 3% from Q3 2024, with an underlying return on equity (ROE) of 18.3% [5][12] - Reported net income for common shareholders was $1,106 million, down $242 million or 18% from the previous year, with a reported ROE of 19.3% [5][12] - Earnings per share (EPS) increased to $1.86 for underlying EPS and decreased to $1.97 for reported EPS compared to the previous year [4][5] Business Segment Highlights - Asset management and wealth segment reported an underlying net income of $500 million, a 5% increase, while the group health and protection segment saw a decline of 18% to $284 million [5][12] - Individual protection segment's underlying net income rose by 25% to $361 million, driven by favorable mortality experience and business growth in Asia [5][12] - Corporate expenses reflected a net loss of $98 million, an increase in loss of 7% from the prior year [5][12] Growth Metrics - Asset management gross flows and wealth sales reached $62,117 million, a 48% increase from Q3 2024, with significant contributions from both individual and group sales [6][12] - Group health and protection sales increased by 12% year-over-year, while individual protection sales surged by 35% [11][12] - New business Contractual Service Margin (CSM) was $446 million, up from $383 million in the prior year, indicating strong sales performance [6][12] Capital Position - The company ended the quarter with a Life Insurance Capital Adequacy Test (LICAT) ratio of 154%, demonstrating a robust capital position [3][12] - A dividend increase of 4.5% to $0.92 per share was announced, reflecting confidence in financial stability [3][12] Strategic Developments - Sun Life formalized its asset management structure under Tom Murphy's leadership to enhance growth across asset management, insurance, and wealth businesses [3][12] - The company continues to focus on digital transformation and automation in its insurance business, improving underwriting processes and client experience [29][12]