Sun Life Financial (SLF) Q1 2025 earnings summary

Executive summary

• Underlying net income rose 19% year-over-year to CAD 1.045 billion, with underlying EPS of CAD 1.82 and underlying ROE at 17.7%.

• Reported net income increased 13% to CAD 928 million, with reported ROE at 15.7%.

• Total assets under management reached CAD 1.55 trillion, up 6% year-over-year, and insurance sales increased 13%.

• Dividend per common share increased 5% to CAD 0.88, and a renewed normal course issuer bid was announced for share buybacks.

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

Financial highlights

• Asset management and wealth profit rose 19% year-over-year, with underlying net income up to CAD 487 million and AUM at CAD 1.551 trillion.

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

• Book value per share rose to CAD 40.84, up 9% year-over-year and 0.5% sequentially.

• LICAT ratio at 149%, with holding company cash of CAD 1.3 billion and financial leverage ratio at 20.1%.

• Group health and protection, and individual protection profits up 18–20% year-over-year.

Outlook and guidance

• Management remains confident in resilience and execution of long-term strategy, focusing on digital leadership and capital strength.

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

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

• SLC Management target of CAD 235 million for 2025 reaffirmed, with expectations for solid growth into 2026 and beyond.

• Capital deployment priorities include organic investments, dividends, M&A, share buybacks, and debt redemption.