Sun Life Financial (SLF) Q1 2025 earnings summary

Executive summary

• Achieved underlying net income of $1,045 million, up 19% year-over-year, and reported net income of $928 million, up 13% year-over-year, with underlying ROE at 17.7%.

• Total assets under management reached $1.55 trillion, up 6% year-over-year.

• Announced a 5% increase in common share dividend and renewed normal course issuer bid for share buybacks.

• Strong growth across all business segments, supported by digital initiatives, capital raising, and diversified operations.

• Maintained robust capital position with a LICAT ratio of 149% and Holdco cash at $1.3 billion.

Financial highlights

• Underlying EPS was $1.82, up from $1.50 year-over-year; reported EPS was $1.62, up from $1.40.

• Asset management and wealth underlying earnings up 19% year-over-year, with asset management gross flows and wealth sales up 33% to $62.2 billion.

• Group health and protection underlying earnings up 18% year-over-year, led by Canada and improved U.S. dental results.

• Individual protection underlying net income up 20% year-over-year, with strong Asia joint venture contributions.

• Book value per share increased 9% year-over-year to $40.84 and 0.5% quarter-over-quarter.

Outlook and guidance

• Confident in resilience and execution of long-term strategy amid complex macroeconomic and geopolitical conditions.

• Medium-term objectives include underlying EPS growth of 8–10%, underlying ROE of 18–20%, and a dividend payout ratio of 40–50%.

• Focused on digital leadership, accelerating Asia momentum, and maintaining strong capital levels.

• U.S. business expected to maintain some earnings seasonality and cyclicality, but medium-term growth targets remain intact.

• Asia ROE of 14.6% seen as sustainable if current environment persists.