PR Newswire
TORONTO, Feb. 15, 2017
The information contained in this document is based on the audited annual and unaudited interim financial results of Sun Life Financial Inc. ("SLF Inc.") for the period ended December 31, 2016. SLF Inc. and its subsidiaries, are collectively referred to as "the Company", "Sun Life Financial", "we", "our", and "us", and also includes, where applicable, our joint ventures and associates. Unless otherwise noted, all amounts are in Canadian dollars.
TORONTO, Feb. 15, 2017 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced its results for the fourth quarter ended December 31, 2016. Fourth quarter reported net income was $728 million. Fourth quarter operating net income(1) and underlying net income(1) were $732 million and $560 million, respectively.
| | Quarterly results | | Full Year | ||||
| | Q4'16 | | Q4'15 | | 2016 | | 2015 |
Reported net income ($ millions) | | 728 | | 536 | | 2,485 | | 2,185 |
Operating net income(1) ($ millions) | | 732 | | 598 | | 2,487 | | 2,253 |
Underlying net income(1) ($ millions) | | 560 | | 646 | | 2,335 | | 2,305 |
Reported EPS(2) ($) | | 1.18 | | 0.87 | | 4.03 | | 3.55 |
Operating EPS(1)(2) ($) | | 1.19 | | 0.98 | | 4.05 | | 3.68 |
Underlying EPS(1)(2) ($) | | 0.91 | | 1.05 | | 3.80 | | 3.76 |
Reported ROE(1) | | 14.8% | | 11.4% | | 13.0% | | 12.2% |
Operating ROE(1) | | 14.9% | | 12.7% | | 13.0% | | 12.6% |
Underlying ROE(1) | | 11.4% | | 13.8% | | 12.2% | | 12.8% |
"Our fourth quarter closed out a year defined by an intensified commitment to our Clients and significant progress on several fronts for Sun Life," said Dean Connor, President and Chief Executive Officer, Sun Life Financial. "I'm pleased with the execution of our digital and wealth initiatives in Canada, our sales momentum in Asia, the scaling and integration of our U.S. operations, and strong long-term investment performance in our asset management businesses."
"In 2016, we achieved underlying net income of $2.3 billion, raised our common share dividend twice, and generated 12.2% underlying return on equity," said Connor. "We also generated strong topline growth, increasing insurance sales by 27% and wealth sales by 14% for the year compared to 2015. Total shareholder return was 24% for the year."
"During the quarter we announced industry-leading underwriting and product changes in Canada that increase access and make it easier for Clients to do business with us," said Connor. "We also continued to improve our digital touchpoints and solutions, from new mobile apps to advanced analytics that provide Clients with proactive and relevant advice and prompts to meet their unique needs. In recognition of our focus, Sun Life earned the highest overall score in Forrester's annual Canadian Life Insurance Digital Sales Functionality Benchmark."
______________________ | |
(1) | Represents a non-IFRS financial measure. See Use of Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures. |
(2) | All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated. For operating EPS and underlying EPS, refer to Use of Non-IFRS Financial Measures. |
(3) | For additional information, see the section under the heading Capital Management in this document. |
Operational Highlights
Our strategy is focused on four key pillars of growth, where we aim to be a leader in the markets in which we operate. We detail our continued progress in these pillars below.
Fourth Quarter Operational Highlights
A Leader in Insurance and Wealth Solutions in our Canadian home market
Total Canadian sales were strong and increased compared to the fourth quarter of 2015 in each of our businesses. Individual insurance sales doubled over the same period in the prior year in anticipation of the tax legislation changes effective January 1, 2017. The increase was driven by Career Sales Force and third-party sales, particularly of participating permanent and universal life products.
Individual wealth sales of $1.5 billion were up 8% in the fourth quarter. We continued to experience solid growth in sales of our wealth manufactured(1) products including SLGI(2) mutual funds, Sun GIF(3) segregated funds, and payout annuities. These increases were partially offset by a decrease in sales of non-SLGI mutual funds.
Group Benefits and Group Retirement Services sales increased compared to the fourth quarter of 2015, primarily due to several large-case sales.
A Leader in global Asset Management
MFS Investment Management ("MFS") had AUM of US$426 billion as at December 31, 2016. Gross sales were US$19.8 billion in the fourth quarter of 2016 and net outflows were US$9.5 billion. Rebalancing by institutional Clients was the largest driver of outflows. An increase in non-U.S. retail redemptions, which were in line with the industry as a whole, was an additional contributor to the higher net outflows when compared to the previous quarter.
In the fourth quarter, we experienced asset depreciation of $5.6 billion reflecting the decline in fixed income and non-U.S. equity markets. MFS remains focused on long-term retail funds, where performance remained strong: 61%, 75% and 97% of MFS's U.S. retail mutual fund assets ranked in the top half of their Lipper categories based on three-, five- and ten-year performance, respectively, as of December 31, 2016.
Sun Life Investment Management had AUM of $53 billion as at December 31, 2016. Strong net inflows of $2.3 billion in the fourth quarter were driven primarily from Prime Advisors Inc. During the quarter, the Bentall Kennedy group of companies ("Bentall Kennedy") continued to expand its product offerings by creating products that are complementary to its core Canadian and U.S. diversified property funds.
A Leader in U.S. Group Benefits and International high net worth solutions
Sales in Group Benefits increased 32% compared to the fourth quarter of 2015, following our U.S. employee benefits business acquisition in 2016. Year over year, collectively, sales in the life, disability, and dental product lines doubled, and Disability Reinsurance Management Services sales remained strong.
A Leader in Asia through Distribution Excellence in Higher Growth Markets
SLF Asia individual insurance sales increased by 36% over the fourth quarter of the prior year, with growth in all markets. These results were driven by organic growth across the region as well as our increased ownership of businesses in India, Indonesia and Vietnam. Strong wealth sales were led by growth across India, Hong Kong and the Philippines.
We continued to invest in our Asia business during the quarter, and completed a transaction to acquire the remaining 25% share in Sun Life Vietnam Insurance Company Limited.
_________________________ | |
(1) | Represents sales of individual wealth products developed by Sun Life, which include Sun Life Global Investment mutual funds, Sun Life Guaranteed Investment Funds segregated funds, Guaranteed Investment Certificates, and Accumulation and Payout Annuities. |
(2) | Sun Life Global Investments (Canada) Inc. |
(3) | Sun Life Guaranteed Investment Funds |
Annual Operational Highlights
A Leader in Insurance and Wealth Solutions in our Canadian home market
A Leader in global Asset Management
A Leader in U.S. Group Benefits and International high net worth solutions
A Leader in Asia through Distribution Excellence in Higher Growth Markets
Recognition
_________________________ | |
(1) | The 2016 Fraser Group, most recently published Group Universe Report, based on 2015 data as measured by revenue, including administrative services only premium equivalents. |
(2) | As measured by Benefits Canada magazine's 2016 CAP Suppliers Report, based on June 30, 2016 assets under administration, and released in December 2016. |
(3) | LIMRA, for the nine months ended September 30, 2016. |
(4) | Represents sales of individual wealth products developed by Sun Life, including Sun Life Global Investment mutual funds, Sun Life Guaranteed Investment Funds segregated funds, Guaranteed Investment Certificates, and Accumulation and Payout Annuities. |
(5) Werbung Mehr Nachrichten zur Sun Life Financial Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |