The Canadian life insurer
Sun Life Financial Inc.
) announced operating earnings $457.1 million (C$453 million),
compared to an operating loss of $216 million (C$221 million) in
the fourth quarter of 2011.
Adjusted revenue was $5.7 billion (C$5.6 billion), compared to
$4.6 billion (C $4.7 billion) in the year ago quarter. The
increase in revenue came on the back of higher premium revenue
from SLF Group Retirement Services in Canada and SLF Life and
Investment Products businesses in the U.S., higher investment
income and increased fee income from Mutual Fund Segment
Total benefits and expenses was $ 3.9 billion (C$3.9 billion)
down from $5.4 billion (C$5.5 billion) in the year ago
Full Year Highlights
The company reported operating earnings of $1.6 billion (C$1.6
billion), compared to loss of $361 million (C$370 million) in
Adjusted revenue of $19.5 billion (C$19.5 billion) was up from
$ 18.7 billion (C$19.1 billion) in full year 2011. The increase
was driven by higher fee income from MFS and favorable impact
from currency movements.
During the quarter
reported operating income of $149 million (C$149 million), down
18% year over year, led by favorable impact of investment
activity on insurance contract liabilities in Individual
Insurance & Investments and Group Retirement Services, and
positive morbidity and mortality experience in Group
operating income during the quarter was $93 million (C$93
million), compared to an operating loss of $75 million (C$77
million) in the year ago quarter. Results were favorably impacted
by the refinement of certain actuarial assumption updates from
the prior quarter, partially offset by unfavorable morbidity
experience in Employee Benefits Group as well as an investment in
voluntary benefits capabilities.
MFS Investment Management
reported operating net income of $85 million (C$85 million)
compared to $66 million (C$68 million) in the year ago
reported operating income was $50 million (C$50 million),
compared to $43 million (C$44 million) in the year ago
segment reported operating net loss of (C$44 million), compared
to an operating loss of $6.8 million (C$7 million) in the year
The company reported operating return on equity of 12.9%,
compared to a negative 6.5% in the year ago quarter.
Sun Life Assurance's MCCSR ratio was 209% as at Dec 31, 2012,
compared to 211% as at Dec 31, 2011. The decline in capital ratio
was due to low interest rates and volatile equity markets.
In an effort to shed its variable annuity exposure, during the
fourth quarter the company entered into an agreement to sell off
its U.S. annuities business. It also made agreement to sell
certain of its U.S. life insurance businesses including all of
the issued and outstanding shares of Sun Life Assurance Company
Results reflect the company's consistent effort towards its
growth strategy. We expect favorable results from the company
Other players in the same field
StanCorp Financial Group Inc.
Lincoln National Corporation
Protective Life Corp.
) all reported fourth quarter earnings ahead of the Zacks
LINCOLN NATL-IN (LNC): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
SUN LIFE FINL (SLF): Free Stock Analysis
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