Sun Life’s high insurance sales exceed profit projections 2023

Sun Life Financial Inc., Canada’s second-largest life insurer, surpassed analyst estimates for first-quarter profit on Thursday, fueled by robust insurance sales in Canada and the United States.

As consumers placed a premium on health and financial security, the insurer experienced “strong growth in both health and protection sales,” according to CEO Kevin Strain.

As domestic growth has slowed, Sun Life has focused on international expansion, acquiring Denta Quest in the United States and forming a partnership with Dah Sing Bank in the first quarter.

Sun Life has added digital tools and new products to its domestic offerings to stimulate growth.

The United States and Canada, which account for over 60% of the company’s profits, saw their underlying net income increase by 121% and 53%, respectively. In Asia, the rise was 6%.

Sun Life’s results are the result of global market volatility, which has pushed investors towards safe-haven assets, and rising interest rates, which have increased uncertainty.

Larger competitor Manulife Financial Corp reported weaker-than-anticipated first-quarter earnings, primarily due to deterioration in its wealth and asset management division.

Sun Life’s asset management division’s earnings decreased by 11% due to reduced commissions and broader equity market declines.

The fundamental net income increased 24% to C$895 million. According to Refinitiv data, the company earned $1.52 per share, exceeding analysts’ expectations by one cent.