- Sun Life (TSX:SLF) faced a setback as it reported its Q1 2024 results, missing core profit estimates for the first time in 12 quarters
- The Canadian life insurer attributed this downturn to several factors, including higher morbidity claims, the sale of Sun Life U.K., and the conclusion of the public health emergency in the United States
- The individual protection business of Sun Life also experienced a downturn, with underlying net income dropping by 4 per cent to C$278 million
- Sun Life Financial stock last traded at C$73.43 per share
Sun Life (TSX:SLF) faced a setback as it reported its Q1 2024 results, missing core profit estimates for the first time in 12 quarters.
One of Canada’s leading life insurers, the company attributed this downturn to several factors, including higher morbidity claims, the sale of Sun Life U.K., and the conclusion of the public health emergency in the United States.
In a statement addressing the disappointing results, CEO Kevin Strain highlighted the challenges faced by the company during the quarter. He noted that higher morbidity claims, particularly in the U.S. medical stop-loss sector, and lower results in U.S. dental services had a significant impact on the quarterly performance. On top of this, the sale of Sun Life U.K. contributed to a decline in earnings from the company’s group health and protection businesses, which fell 8 per cent to C$280 million.
The individual protection business of Sun Life also experienced a downturn, with underlying net income dropping by 4 per cent to C$278 million. This decline was primarily attributed to the sale of Sun Life U.K., which affected the overall performance of this segment.
Sun Life’s quarterly results stand in contrast to those of its competitor, Manulife Financial Corp. (TSX:MFC), which recently surpassed analysts’ estimates. Manulife’s success was largely driven by robust growth in Asia, a crucial market for the company.
Despite the challenges faced during the quarter, Sun Life posted underlying net income of C$875 million, or C$1.50 per share, for the three months ended March 31. This is compared to C$895 million, or C$1.52 per share, reported for the same period last year.
Based out of Toronto, Sun Life Financial Inc. is an international financial services company that offers asset management, wealth, insurance and health solutions to individual and institutional clients.
Sun Life Financial stock last traded at C$73.43 per share and has risen 13.48 per cent since this time last year.
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