Sun Life Financial Inc. Reported its Net Income Slipped in Q22024, Declared Dividends Payable in Q32024

Sun Life Financial Inc. announced its results for the second quarter ended June 30, 2024. Underlying net income of $1,000 million increased $80 million, or 9%, from Q22023; the underlying return on equity (ROE) was 18.1%. Reported net income of $646 million decreased by $14 million, or 2%, from Q22023; reported ROE was 11.7%. Assets under management (AUM) of $1,465 billion increased $98 billion, or 7%, from Q22023.

Underlying net income of $1,000 million increased $80 million or 9% from prior year, driven by:

• Wealth & asset management up $36 million: Higher fee income in Asset Management, Canada, and Asia, partially offset by higher expenses in Asset Management.
 • Group - Health & Protection down $55 million: Lower results in U.S. Dental primarily reflecting the impact of Medicaid redeterminations and related claims following the end of the Public Health Emergency, less favorable morbidity experience in Canada, and unfavorable morbidity experience in U.S. medical stop-loss, partially offset by strong business growth in U.S. Group Benefits and Canada.
• Individual - Protection up $82 million: Business growth in Asia and Canada, and favorable mortality experience in Canada and the U.S.
• Corporate expenses & other $17 million decrease in net loss driven by lower operating expenses and financing costs.

Reported net income of $646 million decreased $14 million or 2% from prior year, reflecting:

 • Financial discipline remains core to our Client Impact Strategy and business. In Q22024, we recorded a restructuring charge of $138 million (post-tax $108 million) reflecting actions taken to improve productivity and drive earnings growth at the higher-end of our Medium-Term Financial Objectives. The company expect these actions to result in annual savings of approximately $200 million (pre-tax) by 2026. The restructuring charge is offset by;
• The increase in underlying net income; and
• Market-related impacts primarily reflecting interest rates and real estate investments.
Underlying ROE was 18.1% and reported ROE was 11.7% (Q2'23 - 17.7% and 12.7%, respectively). SLF Inc. ended the quarter with a LICAT ratio of 150%.

Source: PSE Edge/SunLife

Source: PSE Edge/SunLife

The Board of Directors of Sun Life Financial Inc. announced that a dividend of $0.81 per share on the common shares of the Company has been declared, payable September 27, 2024 to shareholders of record at the close of business on August 28, 2024. This is the same amount as paid in the previous quarter.

The Board also announced that the following dividends have been declared on the Company's Class A Non-Cumulative Preferred Shares, payable on September 27, 2024 to shareholders of record at the close of business on August 28, 2024:
​
Series 3 - $0.278125 per share
Series 4 - $0.278125 per share
Series 5 - $0.28125 per share
Series 8R - $0.114063 per share
Series 9QR - $0.395852 per share
Series 10R - $0.185438 per share
Series 11QR - $0.443742 per share
 
Note: All figures in Canadian dollars
 
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 June 30, 2024, Sun Life had total assets under management of $1.46 trillion.