Sun Life fourth-quarter profit soars 45 per cent to $1.08 billion on India IPO gain

TORONTO – Sun Life Financial Inc. capped off a strong year with net income soaring 45 per cent to $1.08 billion in the fourth quarter, largely driven by the IPO of its India asset management joint venture.

The Toronto-based insurer says its fourth-quarter profit equalled $1.83 per diluted share, up from $1.27 per share a year earlier.

The increase included a $297 million gain on the public offering and increased value of its real estate investments, partially offset by a $153-million increase in acquisition-related liabilities.

Underlying income was $898 million or $1.53 per share, compared with $862 million or $1.47 per share in the fourth quarter of 2020.

Wealth sales for the three months ended Dec. 31 increased to $56.7 billion while insurance sales were up 13 per cent $1.61 billion.

For the full-year, Sun Life earned $3.9 billion or $3.53 billion on an adjusted basis, up from $2.4 billion and $3.2 billion respectively in 2020.

“We ended the year with a solid fourth quarter driven by growth in wealth and asset management,” stated CEO Kevin Strain.

Sun Life was expected by analysts on average to report $1.52 per share in underlying profits in the quarter and $6.03 per share or $3.61 billion for the full-year.

Assets under management grew 15 per cent to $1.4 trillion.

Asia was the biggest contributor to net profits in the quarter, accounting for $446 million, up from $132 million a year earlier.

Canada followed with $356 million, up by 40 per cent, while Canadian insurance sales rose 30 per cent to $241 million.

This report by The Canadian Press was first published Feb. 9, 2022.

Companies in this story: (TSX:SLF)