#Canada #Toronto #earnings report #Sun Life Financial #Q4 2025

Sun Life Financial Inc. Reports Strong Q4 and Full Year Results for 2025

On February 11, 2026, Sun Life Financial Inc. (TSX: SLF; NYSE: SLF) released its fourth quarter and full-year results for 2025, showcasing remarkable financial performance across its various segments. The company reported an underlying net income of CAD 1,094 million for Q4 2025, reflecting a growth of 13% compared to Q4 2024. Full-year underlying net income reached CAD 4,201 million, marking a 9% increase from the previous year.

Key Financial Highlights

In Q4 2025, Sun Life's underlying earnings per share (EPS) grew to CAD 1.96, up by 17% from the same period last year. The reported net income for Q4 was CAD 722 million, representing a dramatic increase of 205% year-over-year. The company’s assets under management (AUM) rose to CAD 1,605 billion, a 4% increase from December 31, 2024.

Kevin Strain, President and CEO of Sun Life, emphasized the company's robust performance, driven by disciplined execution and a diversified strategy. He stated, "Our disciplined approach ensures we remain focused on our clients and our purpose, yielding strong results in Asia and wealth management segments."

Segment Performance

Asset Management

In the asset management sector, the underlying net income reached CAD 370 million, driven by improved credit experience and higher fee income. The company's gross flows in this segment reached CAD 59,861 million, showing resilience despite a slight decrease of 2% year-over-year.

Canada Segment

The Canadian business segment reported an underlying net income of CAD 417 million, an increase of 14% year-on-year. The asset management gross flows rose significantly, with a remarkable 46% increase driven by solid sales in Group Retirement Services and mutual funds.

U.S. Performance

In the U.S. segment, the underlying net income increased to CAD 210 million, marking a 30% growth attributed to improved results in group health protection and individual insurance. The reported net income turned positive, signifying recovery and growth in this sector.

Strategic Developments

One of the notable decisions in 2025 was the formalization of Sun Life’s asset management pillar. This includes the heightening of growth initiatives through strategic partnerships and collaborations in Canada and Asia. The launch of a program to broaden access to virtual healthcare is also a substantial step toward enhancing client services.

Market Outlook

The company concluded 2025 with a solid LICAT ratio of 157%, reflecting strong capital management and financial stability. As the market faces various challenges, Sun Life is set to capitalize on its diverse operations and continued expansion in fast-growing Asian markets.

Conclusion

Sun Life Financial Inc. has established itself as a leader in the financial services industry, reporting strong quarterly and yearly results. These outcomes highlight its commitment to delivering value to shareholders while maintaining a focus on client needs and market demands.