Sun Life Financial (SLF) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 2025 results with underlying net income of $1,094 million (CAD 1.1 billion), up 13% year-over-year, and reported net income of $722 million, up 205% year-over-year.

• Underlying EPS for Q4 was $1.96, up 17% year-over-year; full-year underlying EPS was $7.45, up 12%.

• Underlying ROE reached 19.1% for Q4 and 18.2% for the full year.

• Total assets under management reached $1,605 billion (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

• Full-year underlying net income was $4,201 million, up 9% year-over-year; reported net income was $3,472 million, up 14%.

• Group Health & Protection underlying net income rose 16% to $308 million; Individual Protection underlying net income rose 17% to $362 million in Q4.

• Asset management & wealth underlying net income increased 10% to $534 million in Q4.

• Group Health & Protection sales grew 42% year-over-year; Individual Protection sales grew 38% year-over-year.

• New business CSM for Q4 was $440 million, up 44% year-over-year.

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 and robust Asia growth, with Indonesia and Hong Kong as key markets.

• Asset management platform positioned for further growth, with SLC targeting 20% fee-related earnings growth medium-term.

• Share buybacks expected to resume later in 2026, pending market conditions.

• Dividend per share increased by 9% year-over-year.