Sun Life's Q4 net income drops 75% amidst impairment charge

It was partially offset by favourable interest rate impacts.

Sun Life’s Asia unit reported an underlying net income of $175m in the fourth quarter (Q4 2024), a 22% year-on-year (YoY) increase, driven by higher wealth and asset management fees, improved protection experience, and stronger contributions from joint ventures. 

Wealth and asset management income rose by $9m due to higher assets under management, whilst individual protection income increased by $41m. 

However, regional office expenses and other costs led to an $18m increase in net loss, reflecting continued investments and higher incentive compensation.  

Also, the region's reported net income fell by 75% to $11m in Q4 2024. “In the fourth quarter we saw sustained momentum in our Asia business. Our reported net income was affected by market conditions and an impairment in our Vietnam business,” Kevin Strain, President and CEO of Sun Life, said in a release.

This was partially offset by favourable interest rate impacts, improved real estate experience, and higher underlying net income.

Foreign exchange translation contributed an additional $4m to underlying net income and $6m to reported net income.  

Individual sales reached $601m, up 12%, driven by higher sales in International due to a large case sale, as well as growth in India’s bancassurance and direct-to-consumer channels.

Hong Kong also saw increased sales through agency and bancassurance channels. 

Wealth sales and asset management gross flows remained steady, with higher money market fund sales in the Philippines and increased sales of Hong Kong’s Mandatory Provident Fund offset by lower fixed-income fund sales in India.  

New business contractual service margin (CSM) declined to $201m in Q4 2024 from $223m the previous year, primarily due to changes in business mix.