Sun Life Financial Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Sun Life Financial Inc. SLF delivered a fourth-quarter 2025 underlying net income of $1.41 per share, which beat the Zacks Consensus Estimate by 4.4%. The bottom line increased 17.5% year over year.  

The underlying net income was $784.6 million (C$1 billion), which increased 13.7% year over year. The increase was attributable to solid results in asset management and wealth, Group-health and protection, and Individual-protection.

Revenues increased 16.5% year over year to $6.2 billion.

Wealth sales & asset management gross flows decreased 1.6% year over year to $42.9 billion (C$59.8 billion) in the quarter under review.  
The new business contractual service margin was $315 million (C$440 million), up 44% year over year.

SLF’s Segment Results

SLF Canada’s underlying net income increased 14.2% year over year to $299 million (C$417 million), driven by better performance in Wealth & asset management, Group- health and protection and Individual - Protection. Wealth sales & asset management gross flows of $5 billion (C$7 billion) were up 42% year over year. 

SLF U.S.’ underlying net income was $210 million, which increased 30.4% year over year. The increase was attributable to solid performance at Group - Health & Protection as well as Individual – Protection. 

U.S. group sales of $1.2 billion were up 45%, reflecting medical stop-loss and large case employee benefits sales in Group Benefits, and higher Medicaid sales in Dental.

SLF Asset Management reported an underlying net income of $265 million (C$370 million), which grew 3.1% year over year, driven by higher fee income from higher ANA, partially offset by higher expenses. Asset Management AUM of $827 billion ($1,154 billion) increased 6.1% year over year. SLC Management's AUM increased 4% year over year.

SLF Asia reported an underlying net income of $148.4 million (C$207 million), which grew 18.7% year over year, driven by better results in Individual – Protection.

Individual sales of $641 million (C$894 million) were up 49.4%, driven by higher sales in Hong Kong from growth across all channels, higher sales in India and Indonesia primarily from the bancassurance channel, partially offset by lower sales in High Net Worth from the broker channel.

Wealth sales & asset management gross flows grew 8% year over year, driven by higher fixed income and equity fund sales in India, partially offset by lower fixed income fund sales in the Philippines.

New business CSM of $215 million (C$300 million) increased 54.6%, driven by higher sales in Hong Kong.

SLF’s Financial Update  

Total assets under management were $1.1 trillion (C$1,604.9 billion), which remained flat year over year. 

Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 140% as of Dec. 31, 2025, which contracted 600 basis points (bps) from Dec. 31, 2024. Sun Life Financial’s LICAT ratio was 157%, which expanded 500 bps year over year.

The underlying return on equity of 19.1% expanded 260 bps year over year. 

The leverage ratio of 23.5% deteriorated 340 bps year over year.

Sun Life’s return on equity was 15.1% in 2025, which expanded 150 bps year over year.

SLF’s Dividend Update

In the reported quarter, the company’s board of directors approved a dividend of 92 cents per share. The dividend will be paid out on March 31 to shareholders of record as of Feb. 25.

SLF’s Zacks Rank

SLF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Assurant, Inc. AIZ reported fourth-quarter 2025 net operating income of $5.61 per share, which beat the Zacks Consensus Estimate by 1.08%. The bottom line increased 17% year over year. Total revenues increased 7.5% year over year to $3.3 billion. The top line beat the Zacks Consensus Estimate by 2.7%.

Adjusted EBITDA, excluding reportable catastrophes, increased 3% to $445.9 million, due to growth within both Global Housing and Global Lifestyle. Total benefits, loss and expenses increased 7.4% to $3.1 billion. The figure was higher than our estimate of $2.8 billion.

Markel Group Inc. MKL reported fourth-quarter 2025 net operating earnings per share of $34.45, which beat the Zacks Consensus Estimate by 34.7%. Moreover, the bottom line increased 68% year over year. MKL reported net income of $48.75 per share. Total operating revenues of $4 billion rose 7.6% year over year.

Earned premiums increased 7.6% year over year to $2.2 billion in the quarter. Net investment income increased 5.7% year over year to $257.6 million in the fourth quarter. The figure was higher than the Zacks Consensus Estimate of $240 million. Total operating expenses of Markel increased 5.5% year over year to $3.4 billion. MKL’s combined ratio improved 300 bps year over year to 92.7 in the reported quarter.

Principal Financial Group, Inc.’s PFG fourth-quarter 2025 operating net income of $2.19 per share missed the Zacks Consensus Estimate by 1.8%. The bottom line increased 13% year over year. Total revenues jumped 9.2% year over year to $4.4 billion due to increased premiums and other considerations, fees, and other revenues and net investment income.

Total expenses increased 8.2% year over year to $3.9 billion. As of Dec. 31, 2025, Principal Financial’s assets under management amounted to $781 billion, which is included in the assets under administration of $1.8 trillion.

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