Sun Life reported an underlying net income of $1.045 billion in the first quarter of this year, up from $875 million in the same quarter last year.
The insurer attributed the 19% increase to higher fee-related income in asset management and wealth, and business growth and favourable mortality experience in group and individual protection, among other factors.
As of March 31, the insurer had $1.55 trillion in assets under management (AUM), compared to $1.47 trillion at the same time last year.
Sun Life’s underlying net income in Canada was $376 million, up 21% from $310 million in the first quarter of 2024.
Wealth and asset management underlying net income in Canada was up $3 million year-over-year to $112 million, driven by higher fee income reflecting higher AUM from favourable market movements and strong net inflows. Gross flows and wealth sales were up 60% to $6.5 billion, mainly from higher defined contribution large case sales and higher mutual fund sales in individual wealth.
Canadian group health and protection underlying net income was up $31 million from the first quarter of 2024 to $145 million this quarter, with business growth and lower claims durations and severity. Group health and protection sales were up 21% to $374 million, driven by higher large case sales.
Individual protection underlying net income in Canada was $119 million in the first quarter of this year, compared to $87 million in the same period last year, mainly driven by lower claims severity. Sales were up 7% to $139 million from higher third-party sales and segregated funds through subsidiary Sun Life Financial Distributors.
The company ended the quarter with a life insurance capital adequacy test ratio of 149%.