Sun Life Financial Inc. posted third‑quarter 2025 results that showed underlying net income of $1.047 billion, a 3 % increase from the same period a year earlier. The company’s underlying earnings per share rose to $1.86, beating the consensus estimate of $1.82 by $0.04, or 2.2 %. Reported net income reached $1.106 billion and reported EPS was $1.97, both above analyst expectations.
Total revenue for the quarter was $9.02 billion, with an adjusted figure of $6.48 billion. Asset‑management and wealth businesses generated $500 million in underlying net income, up 5 % YoY. Canada contributed 13 % growth, while Asia delivered a stronger 33 % increase, underscoring the company’s expanding international footprint. In contrast, the U.S. segment’s underlying net income fell 33 % YoY, largely due to higher claims in dental and stop‑loss lines and a broader decline in U.S. group‑health underwriting.
Asset‑management net inflows turned positive, with $4.0 billion in inflows versus a $17.4 billion outflow in the same period a year earlier. The company’s LICAT ratio climbed to 154 % from 151 % at the end of Q2, reflecting a solid capital base that supports future growth and shareholder returns. Sun Life also increased its common‑share dividend to $0.92 per share, a 4 ¢ lift from the prior quarter, signaling confidence in its cash‑flow generation.
CEO Kevin Strain said the quarter “reflects the strength of our balanced and diversified business strategy.” He highlighted the robust performance in Canada and Asia, the resilience of the asset‑management platform, and the challenges faced by U.S. businesses. Strain noted that the company’s capital position remains strong and that the dividend increase is a tangible benefit for shareholders.
Investors reacted cautiously to the results, weighing the earnings beat against the significant U.S. headwinds and the broader headwinds in the asset‑management space. The company’s guidance for the remainder of the year was not disclosed, but the strong capital metrics and dividend hike suggest management remains confident in its long‑term strategy.
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