Sun Life Quarterly Profit Beats Estimates as Revenue ClimbsKatia Dmitrieva
Sun Life Financial Inc., Canada’s third-largest insurer, posted second-quarter profit that beat analysts’ estimates as wealth-management and insurance sales increased.
Net income from continuing operations rose 60 percent to C$391 million ($375 million), or 64 cents a share, from C$244 million, or 41 cents, a year earlier, the Toronto-based firm said today in a statement. Operating profit, which excludes some items, was 71 cents a share, compared with the 65-cent average estimate of 13 analysts surveyed by Bloomberg.
“Sun Life had a very strong quarter,” Chief Executive Officer Dean Connor, 56, said in the statement.
Life and health insurance sales climbed 32 percent to C$496 million from a year earlier, the firm said. Sales of wealth products were C$28.8 billion, an increase of 32 percent over the same period in 2012, fueled largely by gains in Asia, according to the statement.
Sun Life completed the sale of its U.S. annuities unit last week to Guggenheim Partners LLC shareholders for C$1.35 billion as it seeks to cut risk. Results in that unit were excluded from second-quarter continuing operations, the firm said.
The insurer revised its net income objective for the end of 2015 to C$1.85 billion from C$2 billion before the U.S. annuity-unit sale.
Sun Life slid 0.5 percent to C$32.99 at 4 p.m. in Toronto. The shares have climbed 25 percent this year, outpacing the 5.7 percent advance of the 45-company Standard & Poor’s/TSX Financials Index.
(Sun Life will hold a conference call tomorrow at 10 a.m. in Toronto. To listen, dial +1-416-644-3415 or +1-877-974-0445 or visit http://www.sunlife.com/QuarterlyReports.)