Sun Life Profit Jumps on Asia Insurance, US Acquisition

Sun Life Financial Inc.’s insurance units buoyed its results in the second quarter, helping the Canadian financial firm post a 14% increase in adjusted earnings.

(Bloomberg) — Sun Life Financial Inc.’s insurance units buoyed its results in the second quarter, helping the Canadian financial firm post a 14% increase in adjusted earnings.  

Sun Life made C$920 million ($685 million) in underlying net income, or C$1.57 a share, according to a statement Tuesday. Analysts had expected C$1.54 per share. 

The results include last year’s acquisition of dental insurer DentaQuest, a major factor in the 57% rise in US underlying profit. Sun Life’s Asia unit saw 27% growth, thanks to higher insurance premiums and strong sales in Hong Kong, China and India.

But its global asset management business struggled; underlying profit was flat. MFS Investment Management saw C$5.3 billion in net outflows during the quarter, while SLC Management, an alternative asset manager, captured C$2 billion of inflows.

Sun Life also announced Tuesday it intends to repurchase 2.9% of its common shares beginning August 21.

Shares of Sun Life fell 0.7% at 11:20 a.m. in Toronto; they’re up 8.2% gain this year, outpacing the 2.6% advance of the 29-company S&P/TSX Financials Index.

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