Sun Life Q2 Earnings Gain on Assets under Management Growth

Sun Life Financial Inc. SLF reported second-quarter operating net income from continuing operations of $531.9 million (C$488 million) compared with $440.9 million (C$431 million) in the year-ago quarter.

Results reflect consistent growth in assets under management and gains from investing activities.

Total premium and deposits were $31.5 billion (C$28.9 billion), down 15.3% year over year.

Adjusted revenues (adjusted for premiums and deposits for the impact of constant currency adjustment; and reinsurance in SLF Canada's GB operations adjustment) of Sun Life Financial were $6.2 billion (C$5.7 billion), up 3.4% year over year. The increase was due to higher net investment income as well as higher fee income.

Segment Results

During the quarter, SLF Canada reported operating income of $214.7 million (C$197 million), down 6.2% year over year.

SLF U.S. recorded operating income of $92 million, down 24.6% year over year.

MFS Investment Management reported operating net income of $133 million, up 32% year over year, driven primarily by higher average net assets under management.

SLF Asia reported operating income of $40.3 million (C$37.0 million), down 19.6% year over year.    

Sun Life Financial recorded operating return on equity of 12.6% compared with 12.8% in the year-ago quarter.

Assets under management were up 16% year over year to $729.8 billion (C$684 billion) due to favorable markets, stronger sales and the positive impact of currency movements.

Sun Life Assurance's MCCSR ratio was 222% as of Jun 30, 2014, compared to 219% as of Dec 31, 2013.

Sun Life Financial presently carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other life insurance stocks, like Prudential Financial Inc. PRU, Protective Life Corp. PL and Lincoln National Corporation LNC, reported favorable second-quarter earnings, beating the Zacks Consensus Estimate by 14, 11 and 10 cents, respectively.