Sun Life Financial has released its financial results for the fourth quarter and full year ending December 31, 2024, highlighting a challenging period affected by “market conditions,” according to CEO Kevin Strain (pictured above).
Reported net income for Q4 was C$237 million, down C$512 million or 68% from the previous year. Full-year reported net income was C$3.05 billion, a decline of C$37 million or 1% from 2023. The reported ROE was 4.0% for the quarter and 13.6% for the year.
The company reported underlying net income of C$965 million for the quarter, a decrease of C$18 million or 2% from Q4 2023.
“Our reported net income was affected by market conditions and an impairment in our Vietnam business. Our US business faced some industry-related challenges resulting in unfavourable morbidity experience in medical stop-loss,” Strain said.
In the third quarter of 2024, the company enjoyed increases in both reported net income and underlying net income, posting C$1.35 billion and C$1.02 billion, respectively, much higher than the C$871 million and C$930 million it reported in Q3 2023.
For the full year, underlying net income was C$3.86 billion, an increase of C$128 million or 3% from 2023. The underlying return on equity (ROE) stood at 16.5% for the quarter and 17.2% for the full year.
Other segments did see returns for Sun Life, with wealth and asset management posting underlying net income of C$486 million for Q4, up C$47 million or 11%, with full-year earnings reaching C$1.82 billion, an increase of C$97 million or 6%.
Individual protection saw an increase in underlying net income to C$339 million for Q4, up C$55 million or 19%, with full-year results at C$1.27 billion, an increase of C$133 million or 12%.
However, the group health and protection segment reported underlying net income of C$266 million, down C$99 million or 27% for the quarter, and C$1.2 billion for the year, a decline of C$117 million or 9%.
Corporate expenses and other losses stood at C$126 million for the quarter, an increase of C$21 million or 20%, while the full-year loss improved to C$433 million, a reduction of C$15 million or 3%.
Assets under management reached C$1.54 trillion as of 31 December 2024, reflecting an increase of C$142 billion or 10% from the previous year.
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