Sun Life Earns CA$237 Million in Q4 2024, Lower Amid Market Challenges

Sun Life reported net income of CA$237 million in Q4'24, a decrease of CA$512 million, or 68%, from Q4'23 (full year—CA$3,049 million decreased CA$37 million, or 1%, from 2023); reported ROE was 4.0% (full year—13.6%).

“In 2024 Sun Life achieved strong underlying net income in Asia and Canada, growing 17 percent and six percent over last year, respectively. We also experienced solid growth in Individual Protection with a 20 percent increase in sales over last year, and an 18 percent increase in new business CSM. SLC Management recognized strong net inflows and capital raising throughout the year with a 33 percent increase in net inflows over last year, and capital raising of CA$24 billion,” said Kevin Strain, President and CEO of Sun Life.

​“In the fourth quarter we saw sustained momentum in our Asia business. Our reported net income was affected by market conditions and an impairment in our Vietnam business. Our U.S. business faced some industry-related challenges resulting in unfavorable morbidity experience in medical stop-loss, while we saw improvements in underlying results in our U.S. dental business. Our capital position remains strong with a LICAT ratio of 152 percent at SLF, and we remain confident that our steadfast focus on our Clients, coupled with our balanced and diversified business strategy, positions us well for long-term growth.”

Underlying net income of CA$965 million decreased CA$18 million or 2% from prior year, driven by:

• Wealth & asset management up CA$47 million: Higher fee income in Asset Management, Canada, and Asia, partially offset by lower net investment results in Canada.
• Group - Health & Protection down CA$99 million: Unfavorable morbidity experience in U.S. medical stop-loss and less favorable morbidity experience in Canada, partially offset by business growth in Canada.
• Individual - Protection up CA$55 million: Improved protection experience in Asia and Canada and higher contributions from joint ventures in Asia.
• Corporate expenses & other CA$(21) million increase in net loss primarily reflecting higher expenses largely from continued investments in our Asia businesses and incentive compensation in Asia.

Reported net income of CA$237 million decreased CA$512 million or 68% from prior year, driven by:

• Lower tax-exempt investment income of CA$234 million in Corporate;
• An impairment charge of $186 million on an intangible asset related to bancassurance in Vietnam reflecting updates resulting from changes in regulatory and macro-economic factors; and
• A non-recurring provision in U.S. Dental; partially offset by
• Market-related impacts primarily reflecting improved real estate experience.

Underlying ROE was 16.5% and reported ROE was 4.0% (Q4'23 - 18.4% and 14.0%, respectively). SLF Inc. ended the quarter with a LICAT ratio of 152%.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of September 30, 2024, Sun Life had total assets under management of CA$1.51 trillion.
 
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.