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Sun Life Q2 Earnings Gain on Assets under Management Growth

Zacks Equity Research

Sun Life Financial Inc. (SLF) reported second-quarter operating net income from continuing operations of $531.9 million (C$488 million) compared with $440.9 million (C$431 million) in the year-ago quarter.

Results reflect consistent growth in assets under management and gains from investing activities.

Total premium and deposits were $31.5 billion (C$28.9 billion), down 15.3% year over year.

Adjusted revenues (adjusted for premiums and deposits for the impact of constant currency adjustment; and reinsurance in SLF Canada's GB operations adjustment) of Sun Life Financial were $6.2 billion (C$5.7 billion), up 3.4% year over year. The increase was due to higher net investment income as well as higher fee income.

Segment Results

During the quarter, SLF Canada reported operating income of $214.7 million (C$197 million), down 6.2% year over year.

SLF U.S. recorded operating income of $92 million, down 24.6% year over year.

MFS Investment Management reported operating net income of $133 million, up 32% year over year, driven primarily by higher average net assets under management.

SLF Asia reported operating income of $40.3 million (C$37.0 million), down 19.6% year over year.    

Sun Life Financial recorded operating return on equity of 12.6% compared with 12.8% in the year-ago quarter.

Assets under management were up 16% year over year to $729.8 billion (C$684 billion) due to favorable markets, stronger sales and the positive impact of currency movements.

Sun Life Assurance's MCCSR ratio was 222% as of Jun 30, 2014, compared to 219% as of Dec 31, 2013.

Sun Life Financial presently carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other life insurance stocks, like Prudential Financial Inc. (PRU), Protective Life Corp. (PL) and Lincoln National Corporation (LNC), reported favorable second-quarter earnings, beating the Zacks Consensus Estimate by 14, 11 and 10 cents, respectively.

Read the Full Research Report on LNC
Read the Full Research Report on PRU
Read the Full Research Report on PL
Read the Full Research Report on SLF

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