Sun Life Financial Inc. reported underlying net income of C$1.02 billion for the second quarter ended June 30, 2025, a 2% increase from the same period last year.
Reported net income climbed 11% to C$716 million. The underlying return on equity (ROE) was 17.6%, while reported ROE stood at 12.4%. Assets under management rose 5% year-over-year to C$1.54 trillion.
The 2% increase in underlying net income was supported by a $21 million gain in Group – Health & Protection, which reached $326 million. This was attributed to improved US dental results from Medicaid repricing, higher fee income, and favorable mortality experience in Canada.
The Corporate segment also reported a $27 million reduction in net loss, bringing it to $65 million, primarily due to the timing of strategic investment spending and lower incentive compensation.
Asset Management & Wealth delivered $455 million in underlying net income, unchanged from the previous year. Increased fee-related earnings in SLC Management and higher fee income in Asia were offset by lower average net assets in MFS and reduced investment contributions due to lower yields.
Individual – Protection recorded a $33 million drop in underlying net income to $299 million. This decline was linked to higher expenses in Asia and unfavorable mortality experience in Canada and the US, though Asia saw some offsetting growth.
The increase in reported net income was driven by the year-ago restructuring charge of $108 million in Corporate and the growth in underlying earnings. These were partially offset by a $61 million impairment charge related to the early termination of a US group dental contract and adverse market-related impacts in Asia and Canada.
In the prior quarter, Sun Life reported stronger results. Underlying net income was C$1.045 billion, up 19% year-over-year, and reported net income rose 13% to C$928 million. That quarter's performance was driven by consistent contributions across asset management, health and protection, and individual protection segments.
According to CEO Kevin Strain (pictured above), the quarter’s results reflected underlying net income growth in Asia, bancassurance sales growth of 15% in markets including Hong Kong, India, and the Philippines, and continued momentum in SLC Management flows.
"Driving business and Client outcomes through digital initiatives remains one of our strategic priorities. Innovative GenAI tools are accelerating progress across all of our four pillars, enhancing Client experience and interactions, decreasing processing times for claims, and driving productivity savings,” Strain said.
Asset Management, composed of MFS and SLC Management, posted $300 million in underlying net income, down 2%. Reported net income dropped 7% to $254 million, largely due to market-related impacts at SLC Management.
In Canada, underlying net income fell 6% to $379 million. Individual – Protection saw a $19 million decline from unfavorable mortality experience. Asset Management & Wealth was down $5 million due to lower investment contributions, while Group – Health & Protection was up $1 million. Reported net income rose 13% to $330 million, bolstered by market-related gains.
In the US, underlying net income declined 4% to US$143 million, or C$195 million. Group – Health & Protection improved by US$11 million due to better dental performance, though claims and utilization increased. Individual – Protection fell by US$17 million, affected by mortality and credit experience.
Reported net income decreased 19% to US$74 million, or C$103 million, impacted by the intangible asset impairment tied to the group dental contract termination.
The Corporate segment’s underlying net loss narrowed to $65 million from $92 million last year, while the reported net loss declined to $69 million from $198 million.
The company’s capital and credit positions also continue to receive stable external validation. In April, AM Best affirmed Sun Life’s Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings of “aa.”
The ratings agency cited Sun Life’s robust balance sheet, favorable operating performance, diversified business profile, and strong enterprise risk management as supporting factors for its stable outlook.
Sun Life also announced that David Healy, currently president of the company's US dental business, will take over as president of Sun Life US effective Sept. 1. Healy will succeed Dan Fishbein, M.D., who plans to retire in March 2026.
Fishbein will transition to the role of executive chair for Sun Life US, where he will work with Healy through the leadership handover. The company confirmed the transition plan in a statement by president and CEO Kevin Strain.
Healy brings more than two decades of experience at Sun Life to the role. He previously led the group benefits business for seven years, overseeing strategy and operational changes aimed at expanding service offerings and improving benefits accessibility. Earlier in his tenure, he led US operations and technology, where he consolidated services across business units to standardize client engagement and upgraded technology infrastructure.
Healy also played a central role in integrating Assurant Employee Benefits following its acquisition by Sun Life in 2016. In 2018, he was involved in Sun Life’s acquisition of insurtech firm Maxwell Health, a deal that added digital capabilities and talent to the organization.
Before joining Sun Life, Healy held roles at Keyport Life Insurance Company and Manulife Financial. He holds a bachelor of science in marketing from Providence College and an MBA with high honors from Boston University.
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