Sun Life Financial (SLF) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 2025 results with underlying net income of $1,094 million (CAD 1.1 billion), up 13% year-over-year, and underlying EPS growth of 17% to $1.96, with underlying ROE at 19.1%.

• Reported net income for Q4 2025 was $722 million, up 205% year-over-year, and full-year reported net income was $3,472 million, up 14%.

• Achieved robust protection sales growth in Asia (up 50%), strong wealth sales in Canada, and SLC Management exceeded its investor day earnings target.

• Ended the year with assets under management of $1,605 billion (over CAD 1.6 trillion), up 4% year-over-year.

• Maintained a diversified business mix: 43% asset management & wealth, 30% individual protection, 27% group health & protection.

Financial highlights

• Q4 underlying net income: $1,094 million, up 13% year-over-year; underlying EPS: $1.96, up 17% year-over-year; full-year underlying net income: $4,201 million, up 9%.

• Underlying ROE for Q4: 19.1%; full-year underlying ROE: 18.2%; reported ROE for Q4: 12.6%.

• New business CSM for Q4: $440 million, up 44% year-over-year; total CSM ended at $14.5 billion, up 8%.

• Dividend payout ratio: 47%; dividend per share increased by 9% year-over-year.

• Returned $3.7 billion to shareholders through dividends and share buybacks in 2025.

Outlook and guidance

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

• Expect continued strong premium flows in U.S. stop-loss due to record sales and persistency.

• Asia growth expected to moderate in Hong Kong after a strong 2025, but overall good performance anticipated, with Indonesia as a growth market.

• SLC Management targets 20% growth in fee-related earnings over the medium term.

• Gradual improvement expected in U.S. dental business, with ongoing repricing and cost containment actions.