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Sun Life Financial Inc. Message Board

  • bluecheese4u bluecheese4u May 7, 2009 8:39 AM Flag

    Sun Life Financial reports first quarter results

    Sun Life Financial reports first quarter results
    Note to Editors: All figures shown in Canadian dollars unless otherwise noted.
    TORONTO (May 7, 2009) – Sun Life Financial Inc. (TSX/NYSE: SLF) reported a net operating loss of $186 million for the first quarter of 2009, compared with net operating income of $533 million in the same period last year. Fully diluted operating loss per share1 was $0.33 compared to operating earnings per share of $0.93 in the first quarter of 2008, a decrease of $1.26. Results in the first quarter of 2008 include earnings of $43 million or $0.08 per share from the Company’s 37% ownership interest in CI Financial, which the Company sold in the fourth quarter of 2008. The operating loss for the first quarter of 2009 does not include after-tax charges of $27 million for restructuring costs taken as part of the Company’s actions to reduce expense levels and improve operational efficiency. Including restructuring costs recorded in the first quarter of 2009, the Company reported a net loss of $213 million or $0.38 per share.
    Results this quarter were impacted by reserve strengthening, net of hedging, of $325 million related to equity market declines, reserve increases of $167 million for downgrades on the Company’s investment portfolio, and credit and equity impairments of $34 million and $42 million respectively. Despite the capital market impacts on the first quarter financial results, the Company remains well capitalized with a Minimum Continuing Capital Surplus Requirement (MCCSR) ratio of 223% for Sun Life Assurance Company of Canada. The Company also reported the 2008 Risk Based Capital Ratio for Sun Life Assurance Company of Canada (U.S.) of 357%, in excess of its target range of 300%-350%.
    "During this challenging period, individuals and organizations are increasingly placing their confidence in Sun Life. We are strong, solid and sustainable. Strong business fundamentals are reflected in the quarter's higher premium revenues, exceptional fund performance at MFS and impressive sales momentum. North American group businesses advanced nicely, including record earnings in our U.S. Employee Benefits Group, as did Asia where we continue to invest," said Donald A. Stewart, Chief Executive Officer.
    "We are managing through the turbulent times by cutting expenses, driving efficiencies, enhancing strategic risk management, and maintaining the flexibility to seize opportunities for growth," he said. "Notwithstanding our disappointing short-term results, we are very well positioned to emerge from the recession as a stronger, more focused and competitive company."

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