Sun Life Financial Inc. reported net income of $875 million in the first quarter, down 2% from the same quarter last year.
The insurer said earnings were hit by its U.S. health division, including reassessments following revised Medicaid determinations primarily reflecting higher morbidity claims. The U.S. division reported a 20% decline in underlying net income to $141 million.
The Canadian division declined about 2% to net income of $310 million as an increase in death benefit payments offset growth in business.
Sun Life’s assets under management as of March 31 were $1.47 trillion, up from $1.4 trillion as of December 31. The increase was primarily due to favorable market developments in the value of segregated, retail, institutional and managed funds, as well as positive currency effects.
However, the insurer also reported a net outflow of $10.5 billion from segregated funds and assets managed by third parties.
Asset sales and gross cash flows in Canadian asset management were $4.08 billion in the quarter, up 32% year over year. The increase was driven by higher sales of mutual funds in individual wealth and higher sales of defined benefit and defined contribution in group pension services.
Individual insurance sales were $130 million, down from $136 million in the first quarter of 2023, reflecting lower sales of unsecured life insurance.
The insurer’s net income was $818 million, up 1% from a year earlier, and the dividend was increased by 4%.
