Sun Life reported a 19% increase in underlying net income to $1.045 billion in the first quarter of this year, up from $875 million in the same period last year. The insurer attributed the growth to higher fee-related income in asset management and wealth, business growth, and favorable mortality experience in group and individual protection. As of March 31, Sun Life had $1.55 trillion in assets under management (AUM), compared to $1.47 trillion at the same time last year.
Financial Highlights by Segment
In Canada, Sun Life’s underlying net income was $376 million, a 21% increase from $310 million in the first quarter of 2024. The wealth and asset management segment saw underlying net income rise $3 million year-over-year to $112 million, driven by higher fee income reflecting increased AUM due to favorable market movements and strong net inflows. Gross flows and wealth sales surged 60% to $6.5 billion, primarily due to higher defined contribution large case sales and increased mutual fund sales in individual wealth.
The Canadian group health and protection segment reported a $31 million increase in underlying net income to $145 million, with business growth and lower claims durations and severity being key factors. Group health and protection sales rose 21% to $374 million, driven by higher large case sales. Individual protection underlying net income in Canada was $119 million, compared to $87 million in the same period last year, mainly due to lower claims severity. Sales in this segment increased 7% to $139 million, driven by higher third-party sales and segregated funds through subsidiary Sun Life Financial Distributors.
Capital Position
Sun Life ended the quarter with a life insurance capital adequacy test ratio of 149%, indicating a strong capital position.
