The reported earnings mark a notable 14% increase from the previous year’s Q2 figure of $808 million. Sun Life attributes this impressive growth to the company’s strong performance in insurance sales, as well as the momentum generated from strategic partnerships and acquisitions.
In particular, CEO Kevin Strain highlighted the “strong growth” witnessed in health and protection sales, along with the positive outcomes stemming from the integration of dental benefits provider DentaQuest, which Sun Life acquired in 2021.
Strain also commended the “strong start” of the bancassurance partnership between Sun Life and Dah Sing Bank in Hong Kong.
Within the group insurance segment, the company reported a noteworthy underlying net income rise of $122 million compared to the previous year’s quarter. Similarly, the private insurance segment experienced a growth of $122 million over the same period.
The financial report further revealed a remarkable 105% year-on-year surge in group sales and a 45% increase in individual sales.
The group segment’s performance was reportedly propelled by robust premium growth and improved disability experience in both Canada and the US. The addition of DentaQuest’s contributions for an entire quarter also contributed positively.
On the other hand, the individual segment’s strong performance can be attributed to higher premiums derived from strong sales momentum in Asia, combined with an enhanced insurance experience in Canada and the US.
In the wealth & asset management segment, Q2 2023 results depicted an underlying net income of $419 million, a slight decrease of $1 million compared to the same quarter in 2022. The decline is noted to be “in-line with the prior year,” with higher expenses offsetting the increase in investment income.
Strain commented on the results, stating, “Sun Life delivered good second quarter results as our diversified set of businesses continued to demonstrate resilience in a challenging economic environment.”
Addressing the company’s future plans, Strain said Sun Life’s dedication to providing health and protection services. He referred to the recent deal to acquire the Canadian virtual healthcare platform Dialogue, stating, “Our investment in dialogue allows us to play a larger role in Canada’s health ecosystem, while reducing the strain on traditional health care organisations.”
