Canada's Sun Life Financial beats Q3 profit estimates

Sun Life Financial

05/11/2025 22:14

Overview

Sun Life Q3 underlying net income rises 3%, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

Reported net income for Q3 falls 18% yr/yr, impacted by market-related factors

Outlook

Company did not provide specific guidance for future revenue or EPS in press release

Result Drivers

ASSET MANAGEMENT GROWTH - Improved credit experience and higher fee income from higher AUM in Canada and higher net seed investment income in SLC Management contributed to asset management growth

INDIVIDUAL PROTECTION GROWTH - Business growth and favorable mortality experience in Asia, along with higher contributions from India joint venture, drove individual protection income

U.S. CHALLENGES - Unfavorable insurance experience in U.S. group benefits and dental led to a decline in group health and protection income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
C$1.86
C$1.82 (11 Analysts)
Q3 EPS
C$1.97
Q3 Adjusted Net Income
Beat
C$1.05 bln
C$1.02 bln (3 Analysts)
Q3 Net Income
C$1.11 bln
Q3 Adjusted ROE
18.30%
Q3 ROE
19.30%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the life & health insurance peer group is "buy"

Wall Street's median 12-month price target for Sun Life Financial Inc is C$94.00, about 8% above its November 4 closing price of C$86.50

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn4bB34pa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)