SUN Life Financial, Canada’s second-largest life insurer, on Monday beat analysts’ estimates for quarterly profit boosted by strong sales at home and in Asia, a key growth market.
The results follow earnings from bigger rival Manulife Financial, which also beat analysts’ estimates driven by strong growth in Asia, where both compete for market share.
Sun Life earned CA$1.72 ($1.25) per share, surpassing the average estimate of CA$1.58 per share, according to LSEG data.
Its underlying net income rose 8.7 percent to CA$1 billion.
“These results reflect continued solid growth in Canada and Asia,” Chief Executive Officer Kevin Strain said.
Sun Life has said it would focus on partnerships to expand in Asian markets, a key playground for Canada’s biggest life insurance companies as they look for global exposure.
Sun Life, a major insurer and asset manager that is also increasingly pushing into health-care services, has inked several deals in Asia, including those with Hong Kong-based virtual insurer Bowtie and a bancassurance deal with Dah Sing Bank.
Core earnings from Asia rose 19 percent, and in Canada, they rose 8 percent.
The US business, however, reported a 5-percent decrease in core earnings hurt by challenges in its Dental insurance segment reflecting the impact of Medicaid redeterminations and the end of the Public Health Emergency.
Underlying earnings from the wealth asset management segment, which contribute about 45 percent of overall earnings, rose 9 percent helped by higher fees.
The group health and protection businesses fell 15 percent while individual insurance sales rose 31 percent.
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