Core Insights - Sun Life Financial Inc. (SLF) reported second-quarter 2025 underlying net income of $1.29 per share, matching the Zacks Consensus Estimate, with a year-over-year increase of 3.2% [2][10] - The company's total revenues reached $6.6 billion, a 2% increase year over year, but fell short of the Zacks Consensus Estimate by 9.3% [3][10] - Strong performance in Asia contributed to record underlying net income, which grew 13.7% year over year, driven by higher sales, assets under management (AUM), and investment contributions [9][10] Financial Performance - Underlying net income for SLF Canada decreased by 6.8% year over year to $274 million (C$379 million), impacted by lower investment contributions and unfavorable mortality experience [5] - SLF U.S. reported an underlying net income of $143 million, down 4% year over year, due to unfavorable mortality and credit experience [7] - SLF Asset Management's underlying net income was $216.7 million (C$300 million), a decrease of 3.4% year over year, attributed to lower fee income [8] Sales and Growth Metrics - Wealth sales and asset management gross flows increased by 12.7% year over year to $38.1 billion (C$52.7 billion) [4] - Individual protection sales grew by 24% to $727 million, driven by strong performance in Hong Kong, Indonesia, and India [11] - New business contractual service margin (CSM) was $314.3 million (C$435 million), down 1.5% year over year [4] Asset Management and AUM - Global assets under management reached $1.13 trillion (C$1.54 trillion), reflecting a 2.7% year-over-year increase [12] - SLF exited the quarter with $805 billion (C$1.11 trillion) in AUM, comprising $635 billion in MFS and $180.6 billion (C$250 billion) in SLC Management [8] Capital Adequacy and Returns - Sun Life Assurance's Life Insurance Capital Adequacy Test (LICAT) ratio was 141% as of June 30, 2025, down 100 basis points year over year [12] - The company's return on equity was 12.4%, expanding 70 basis points year over year, while the underlying return on equity contracted by 50 basis points to 17.6% [13] Dividend Announcement - The board of directors approved a quarterly dividend of 88 cents per share, payable on September 29, 2025, to shareholders of record at the close of business on August 27 [14]