Canada's Sun Life Q2 adjusted profit beats estimates
SLF•Outlook
Company did not provide specific financial guidance for the current quarter or full year.
Result drivers
- Insurance sales growth - Co cited higher group insurance sales up 27% and individual insurance sales up 16% as drivers of Q2 results.
- Asset management inflows - Asset management and wealth contributed C$2.1 bln of net inflows and wealth sales, with momentum in alternatives and private credit.
- Favourable insurance experience - Business growth in Canada and Asia, and favourable insurance experience, supported underlying net income.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Beat | C$2.02 | C$1.95 (12 Analysts) |
| Q2 EPS | C$1.81 | ||
| Q2 Adjusted Net Income | Beat | C$1.12 bln | C$1.08 bln (6 Analysts) |
| Q2 Net Income | C$1.01 bln | ||
| Q2 Adjusted ROE | 19.1% | ||
| Q2 ROE | 17.2% |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the life & health insurance peer group is "buy".
