Canada's Sun Life Q1 adjusted profit, net income in line with estimates; company raises dividend

Sun Life Financial

06/05/2026 22:10

Overview

Canada insurer and asset manager's Q1 adjusted EPS and net income met analyst expectations

Reported net income and EPS fell sharply due to market impacts and one-time charges

Company plans to renew share buyback for up to 10 mln shares and raised dividend

Outlook

Company did not provide specific financial guidance for the current or future periods

Result Drivers

ASIA AND CANADA GROWTH - Underlying net income was driven by strong business growth in Asia, particularly Hong Kong, and higher fee income from increased AUM in Canada

ASSET MANAGEMENT AND CORPORATE DRAGS - Lower results in asset management were due to reduced catch-up fees and net seed investment income at SLC Management, while higher financing costs in Corporate also weighed on results

MARKET IMPACTS AND ONE-TIME CHARGES - Reported net income declined due to unfavourable interest rate impacts, a charge from the acquisition of SLC Management affiliates, and a legal settlement in Canada

Company press release: ID:nCNWSJDrza

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Meet
C$1.89
C$1.89 (13 Analysts)
Q1 EPS
C$0.84
Q1 Adjusted Net Income
Meet
C$1.05 bln
C$1.05 bln (9 Analysts)
Q1 Net Income
C$465 mln
Q1 Adjusted ROE
18.6%
Q1 ROE
8.2%


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$100.00, about 0.4% above its May 5 closing price of C$99.65

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

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