Canada’s Sun Life Financial SLF-T reported a jump in second-quarter profit on Thursday, driven by strong growth in its Asia unit, where insurers are expanding to tap a growing, underinsured middle class and offset weakness in the U.S. market.
“Sun Life’s Q2 results were driven by record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings,” CEO Kevin Strain said in a statement.
Underlying net income from the company’s Asia operations helped lift overall earnings to $716 million, or $1.26 per share, for the quarter ended June 30, up from $646 million, or $1.11 per share, a year earlier.
However, underlying earnings from its individual protection business declined 10% to $299 million.
Underlying earnings from its group health and protection business rose 7% to $326 million, while individual protection earnings fell 10% to $299 million. Wealth and asset management income was flat at $455 million.
The Toronto-based company reported underlying EPS of $1.79, compared with analysts’ average estimate of $1.78 per share, according to LSEG data.
Underlying earnings from Sun Life Financial’s group health and protection businesses, which provide insurance policies to employer and government plan members, rose 7% to $326 million.
Sun Life also said David Healy will become President of Sun Life U.S. effective Sept. 1, 2025, succeeding Dan Fishbein, who plans to retire in March 2026.
Shares of Sun Life have declined about 1% this year, while rival Manulife MFC-T, which also reported strong Asia growth this week, is down 6.4%.