Canadian life insurer,
Sun Life Financial Inc
) announced first-quarter 2013 net operating earnings $444
million (C$448 million), improving 2.5% over first quarter 2012.
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Sun Life Financial's reported net income came in at $406 million
(C$410 million), up 1.2% year over year.
The improved numbers were driven by the continued successful
execution of its growth strategy as well as the favorable impact
from investment activity. Better equity markets conditions also
Adjusted revenues of Sun Life Financial were $5.15 billion (C$5.2
billion), up 10% year over year. The increase was primarily
driven by higher investment income and increased fee income from
Mutual Fund Segment (MFS).
Total benefits and expenses of Sun Life Financial were $ 3.27
billion (C$3.3 billion), up 22.5% year over year.
While wealth sales improved 16%, insurance sales increased 5%.
Assets under management increased 7% year over year to $561
billion (C$570 billion).
During the quarter,
reported operating income of $261 million (C$263 million), up 10%
year over year. The improvement was driven by favorable equity
market experience in Individual Insurance & Investments, net
realized gains on the sale of available-for-sale assets, positive
morbidity experience in Group Benefits (GB) and gains from
investment activities on insurance contract liabilities in
Individual Investments and GB.
recorded operating income of $65 million during the reported
quarter, down nearly 55% year over year. Unfavorable movements in
swap spreads, negative claims experience in Employee Benefits
Group (EBG) and costs related to the strategic investment in EBG
was partially offset by favorable impacts from better equity
markets and interest rates
MFS Investment Management
reported operating net income of $100 million, up 43% year over
reported operating income was $50.5 million (C$51 million), up
nearly 76% year over year.
segment reported operating net income of $36.7 million (C$37
million), up 42% year over year.
Sun Life Financial reported operating return on equity of 15.8%,
compared with 22.1% in the year-ago quarter.
Sun Life Assurance's MCCSR ratio was 214% as of Mar 31, 2013,
compared with 209% as of Dec 31, 2012.
In an effort to shed its variable annuity exposure, in Dec 2012,
Sun Life Financial entered into an agreement to sell off its U.S.
annuities business. It also made an agreement to sell certain of
its U.S. life insurance businesses including all of the issued
and outstanding shares of Sun Life Assurance Company of Canada.
The transaction is expected to close before the end of the second
quarter of this year.
The board of Sun Life Financial approved a dividend of 36 cents
Performance of other Life Insurers
StanCorp Financial Group Inc
Reinsurance Group of America Inc.
) reported operating earnings ahead of the Zacks Consensus
Protective Life Corp
) earnings fell short of the Zacks Consensus Estimate.
Sun Life Financial carries a Zacks Rank #3 (Hold).