TORONTO, Nov 2 (Reuters) – Canada’s second-largest life insurer Sun Life Financial Inc (SLF.TO) on Wednesday reported third-quarter profit that topped analysts’ estimates, as higher insurance sales in the U.S. and Asia helped offset it The decline has affected the revenue of its wealth management business.
Underlying profit rose 5% year over year to C$949 million ($692.1 million) or C$1.62 per share in the three months ended Sept. 30, compared with a consensus estimate of C$1.47.
“Overall insurance sales across our business were strong, reflecting the growing importance customers place on protection and wellness,” Sun Life CEO and President Kevin Strain said in a statement.
Market volatility triggered by a sharp rise in global interest rates has dented Sun Life’s wealth business, causing the business’s core profit to fall 19%. Total assets under management fell 8% year over year to C$1.28 trillion.
Reported profit, which reflects market volatility, fell 54% to C$466 million.
Strain added that Sun Life has been expanding overseas to diversify its business portfolio, with earnings in the most recent quarter benefiting from recent transactions.
Core revenue from the U.S. business nearly doubled to C$216 million, which Strain said was boosted by Sun Life’s $2.48 billion acquisition of DentaQuest last year.read more
($1 = CAD 1.3710)
Reporting by Divya Rajagopal; Editing by David Gregorio
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