Sun Life Financial has reported strong fourth-quarter and full-year results for the period ended December 31, 2025, outpacing its closest rival Manulife on key profitability metrics as the Toronto-based insurer capitalises on disciplined execution and favourable market conditions.
The company posted underlying net income of CA$1,094 million for Q4, up from CA$965 million in the same period of 2024, marking a 13% year-over-year increase. For the full year, underlying net income reached CA$4,201 million, compared with CA$3,856 million in 2024, representing 9% growth.
Underlying earnings per share came in at CA$1.96 for the quarter, a 17% year-over-year increase, whilst full-year underlying EPS was CA$7.45, up 12% from CA$6.66 in 2024.
The company's underlying return on equity stood at 19.1% for Q4 and 18.2% for the full year, data from the insurer's financial statements show. This marks a significant outperformance against Manulife, Sun Life's closest competitor in terms of size and business lines amongst Canada's major insurers.
Manulife reported a core ROE of 17.1% in Q4 2025 and 16.5% for the full year, industry filings indicate, meaning Sun Life delivered 200 basis points of outperformance in the fourth quarter and 170 basis points for the full year.
The Q4 2025 ROE also represented a 260 basis point improvement from Sun Life's own Q4 2024 performance of 16.5%, demonstrating strengthening capital efficiency.
Reported net income attributable to common shareholders was CA$722 million for the quarter, a 205% increase from the CA$237 million recorded in Q4 2024. On a full-year basis, reported net income totalled CA$3,472 million, up CA$423 million or 14%.
Segment performance showed growth across all three operating categories during Q4. Asset management and wealth underlying net income was CA$534 million, up 10%.
Group health and protection rose 16% to CA$308 million, driven by improved US medical stop-loss morbidity experience and business growth in Canada. Individual protection was CA$362 million, up 17%, reflecting business growth and favourable mortality experience in Asia.
Group health and protection sales were CA$1,803 million in Q4, up 42%, whilst individual protection sales reached CA$1,027 million, a 38% increase. Assets under management stood at CA$1,605 billion as of 31 December 2025, up 4% from a year earlier.
Sun Life's LICAT ratio was 157%, up from 152% a year prior.
Kevin Strain (pictured above), president and chief executive, said: "Sun Life delivered strong fourth quarter performance driven by disciplined execution with underlying net income reaching CA$1.1 billion, contributing to 17% underlying earnings per share growth over Q4 last year and underlying return on equity of 19.1%."
