#Canada #Toronto #Q4 2024 #financial report #Sun Life Financial

Sun Life Financial's Fourth Quarter and Full Year 2024 Results

On February 12, 2025, Sun Life Financial Inc. (TSX: SLF; NYSE: SLF) released its unaudited interim financial results for the fourth quarter and the entire year ending December 31, 2024. This report presents a thorough overview of the company’s financial performance across various segments, reflecting both challenges and successes in the year.

Key Financial Highlights

In the fourth quarter, Sun Life reported an underlying net income of CAD 965 million, a slight decrease of CAD 18 million or 2% compared to the same quarter in 2023. In contrast, for the full year, the underlying net income rose by CAD 128 million to reach CAD 3,856 million, marking a 3% increase year-over-year. The report noted the underlying Return on Equity (ROE) at 16.5% for the quarter and 17.2% for the year.

Among the financial segments:

• - Wealth Asset Management recorded an underlying net income of CAD 486 million, up 11%.
• - Group Health Protection saw a decline of 27% in underlying net income, totaling CAD 266 million.
• - Individual Protection improved by 19%, achieving CAD 339 million.

Despite these variances, Sun Life's assets under management increased to CAD 1,542 billion, reflecting a robust growth of CAD 142 billion or 10% since the previous year.

Regional Performance

Asia and Canada markets demonstrated strong financial health, boasting underlying net income growth of 22% and 5%, respectively. The Canadian market enjoyed growth in Individual Protection sales, fueled by a favorable mortality experience and higher contributions from joint ventures in Asia.

U.S. operations, however, faced some hurdles, particularly in Group Health Protection, which reported a 39% drop in underlying income due to adverse morbidity experience.

Kevin Strain, President and CEO, emphasized the company's strategic approach: "We remain confident that our steadfast focus on our clients, combined with our balanced and diversified business strategy, positions us well for long-term growth."

Challenges and Future Outlook

Sun Life’s reported net income for Q4 2024 stood at CAD 237 million, down significantly by CAD 512 million or 68% from the prior year, pointing to various market conditions and an impairment in the Vietnam business. Nevertheless, the firm maintains a strong capital position indicated by a Life Insurance Capital Adequacy Test (LICAT) ratio of 152%. The focus remains on assisting clients in attaining lifetime financial security and enhancing digital solutions across all regions.

Conclusion

Sun Life's performance in 2024 reflects resilience in navigating financial markets while enhancing client services. As the company faces potential challenges ahead, their commitments to growth and stability in multiple markets provide a promising outlook, underpinned by the solid foundation of strategic investments and client focus.