Canadian life insurer,
Sun Life Financial Inc.
) announced second-quarter 2013 net operating earnings $441
million (C$431 million), improving 74.7% year over
Sun Life Financial's reported net income came in at $400
million (C$391 million), up 62.3% year over year.
The improved numbers were driven by strong sales, and
continued product and pricing improvements. Rising interest rates
and favorable credit experience also aided the results.
Adjusted revenues of Sun Life Financial were $5.65 billion
(C$5.5 billion), up 17.5% year over year. The increase was higher
premium and deposits, primarily driven by higher investment
income and increased fee income from Mutual Fund Segment
Total benefits and expenses of Sun Life Financial were $ 705
million (C$690 million), down from $4.9 billion (C$4.9 billion)
in the year-ago quarter.
Wealth sales and insurance sales each recorded increases of
32%. Sun Life's Assets under management increased 23% year over
year to $621 billion (C$590 billion).
During the quarter,
reported operating income of $215 million (C$210 million), up
14.4% year over year. The upside was driven by strong performance
in its Group Benefits, Group Retirement Services, Individual
Insurance and Global Investment line of business.
recorded operating income of $122 million (C$126) during the
reported quarter compared with $8 million (C$6 million). The
segment continues to grow its group insurance and voluntary
MFS Investment Management
reported operating net income of $101 million (C$104), up 50.7%
year over year.
reported operating income was $47.1 million (C$46 million), up
two-fold relative to the year-ago quarter. The company is growing
strongly in the Asian market and has an attractive market
position in Philippines, Hong Kong, and Indonesia.
Sun Life Financial reported operating return on equity of
12.8%, compared with 2.9% in the year-ago quarter.
Sun Life Assurance's MCCSR ratio was 217% as of Jun 30, 2013,
compared with 209% as of Dec 31, 2012.
Highlights of the Quarter
During the quarter, Sun Life Financial completed its
acquisition of 49% of each of CIMB Aviva Assurance Berhad and
CIMB Aviva Takaful Berhad in Malaysia.
Last week, Sun Life completed the sale of some its U.S. Life
Insurance business and U.S. annuities business to Delaware Life
Holdings, LLC. The sale is expected to result in a decline in
shareholders' equity of approximately $1.1 billion. Third quarter
results will bear loss on disposition. The transaction has
reduced the company's equity market and interest rate exposure,
thereby limiting earnings volatility to involuntary forces.
Other life insurers
Protective Life Corp.
) all reported better-than-expected second quarter
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