Robust Expansion in Asset Management

By
Joe Killer
-
Robust Expansion in Asset Management

  • Underlying Net Income: $965 million for Q4 2024, a decline of 2% compared to the previous year; $3.9 billion for the entire year, reflecting a growth of 3% year over year.

  • Underlying Earnings Per Share: $1.68 for Q4 2024, unchanged year over year; $6.66 for the full year, an increase of 5% year over year.

  • Underlying Return on Equity (ROE): 16.5% for Q4 2024; 17.2% for the entire year.

  • LICAT Ratio: 152% at SLF, demonstrating a solid capital position.

  • Total Assets Under Management (AUM): $1.54 trillion, achieving a new record.

  • Group Benefits Revenue (Canada): Increased by 11% year over year.

  • Group Benefits Revenue (US): Gained 6% year over year.

  • Individual Protection Sales (Asia): Increased, fueled by strong demand in Asia.

  • Wealth Sales and Asset Management Gross Flows: Rose by 33%.

  • MFS Assets Under Management: Totaled $606 billion, a 1% increase year over year.

  • SLC Management Capital Raising: Achieved a record $10 billion in Q4 2024; $24 billion for the full year.

  • Book Value Per Share: Rose by 11% year over year.

  • Employee Engagement Index: Averaged a score of 88%.

Release Date: February 13, 2025

For the full transcript of the earnings call, please refer to the complete earnings call transcript.

  • Sun Life Financial Inc (NYSE:SLF) reported impressive capital raising efforts in asset management, with SLC Management achieving an all-time high of $10 billion in the quarter.

  • The firm upheld a strong capital foundation, reflected in a LICAT ratio of 152%, which supports ongoing share buybacks.

  • Sun Life Financial Inc (NYSE:SLF) experienced notable growth in Asia, with underlying net income climbing 17% year over year, driven by robust protection sales.

  • The company’s digital advancements, including virtual care services in Canada and the Advisor Buddy tool in the Philippines, underscore its dedication to innovation and customer impact.

  • Sun Life Financial Inc (NYSE:SLF) recorded unprecedented underlying net income in Canada, bolstered by strong performance across all business sectors.

  • The US segment faced lower results due to adverse morbidity in the medical stop-loss business, primarily because of increased claims severity.

  • Reported net income was significantly influenced by market dynamics and one-time items, including a tax-related loss and impairment charges in Vietnam.

  • Group protection sales experienced a decline, reflecting fewer large case opportunities and pricing discipline, contributing to reduced group sales.

  • The company encountered challenges in the US dental segment, including a one-time provision for administrative services only clients.

  • MFS witnessed net outflows attributed to significant redemptions in large institutional mandates and retail outflows, as investors showed a preference for high-growth technology stocks and interest-bearing products.