Sun Life Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Sun Life Financial Inc. reported strong financial results for Q4 and full year 2025, with underlying net income reaching $1,094 million, a 13% increase from Q4 2024, and a full year increase of 9% to $4,201 million [1][2][6] - The company achieved an underlying EPS of $1.96 for Q4 2025, up 17% year-over-year, and $7.45 for the full year, reflecting a 12% increase [1][2][6] - The underlying return on equity (ROE) was 19.1% for Q4 and 18.2% for the full year, indicating strong profitability [1][2][6] Financial Performance - Reported net income for Q4 2025 was $722 million, a significant increase of 205% from the previous year, driven by favorable market conditions and improved operational performance [2][6] - The company’s total assets under management (AUM) reached $1,605 billion, a 4% increase from the previous year [1][2][6] - The Life Insurance Capital Adequacy Test (LICAT) ratio stood at 157%, reflecting strong financial stability [1][2][6] Business Segment Highlights Asset Management - Underlying net income from Asset Management was $370 million, a 3% increase year-over-year, with gross flows decreasing by 7% to $59,861 million [2][3][6] - MFS experienced net inflows of US$5.5 billion in fixed income, while SLC Management faced net outflows of $19.5 billion [2][3][6] Canada - Canada segment reported underlying net income of $417 million, a 14% increase, driven by favorable insurance experience and growth in asset management [3][4][6] - Individual Protection sales decreased by 6%, while Group Health & Protection sales increased by 8% [3][4][6] U.S. - U.S. underlying net income rose to US$150 million, a 30% increase, supported by improved medical stop-loss morbidity experience [3][4][6] - Group sales in the U.S. increased by 45%, primarily due to strong performance in medical stop-loss and large case employee benefits [3][4][6] Asia - Asia segment's underlying net income increased by 18% to $207 million, driven by strong sales momentum and favorable mortality experience [3][4][6] - Individual sales in Asia rose by 49%, with significant contributions from India and Indonesia [3][4][6] Strategic Developments - Sun Life is restructuring its asset management operations to enhance growth across its insurance and wealth businesses, effective January 1, 2026 [3][4][6] - The company has launched initiatives to improve client experience, including enhanced digital capabilities and automated claims processes [3][4][6]