Sun Life Financial Inc. says its third-quarter profit fell 54% from a year earlier due to overall market declines, and it also recorded a $170 million charge related to the sale of Sun Life UK
The insurance giant said it had net income of $466 million in the quarter ending Sept. 30, up from $1.02 billion in the same quarter last year.
Adjusted income, or what Sun Life calls underlying net income, was $949 million, up 5% from $902 million last year.
Net income for the Canadian unit fell 47% to $210 million, mainly due to changes in interest rates and lower stock market performance, while profits in the US rose 104% to $94 million as the company saw fewer Covid-related claims 19 and other factors.
Insurance sales in Canada increased 28% year-over-year to $233 million, led by large group benefit sales and higher sales of covered individual life insurance policies, the insurer said.
Wealth sales in Canada declined 30% to $4 billion, reflecting lower sales of defined contribution and defined benefit plans within group retirement arrangements and lower sales of individual wealth.
The company’s asset management division saw profits fall 29% to $215 million, partly as a result of an increase in acquisition-related liabilities, while its Asia division saw profits fall 57% to $125 million after the division reported growth on assumptions a year earlier and other activities.
As of September 30, Sun Life had $1.27 trillion in assets under management, up from $1.26 trillion in the prior quarter and down from $1.39 trillion, or 8% year-over-year.
The insurer said AUM has declined 12% so far this year, primarily due to unfavorable market movements as well as net outflows from segregated, retail, institutional and managed funds.
This quarter, Sun Life announced the sale of its UK subsidiary for approximately $385 million, as well as the acquisition of a majority stake in US-based Advisors Asset Management Inc. for USD 214 million.
