Sun Life Financial Inc. has reported second-quarter underlying net income of C$689 million, or C$1.12 per share, compared with C$554 million, or 90 Canadian cents per share, in the year-ago period.
The S&P Capital IQ consensus normalized EPS estimate for the quarter was 98 cents.
Second-quarter underlying net income reflected business growth, gains from investing activity on insurance contract liabilities, positive credit experience, and favorable morbidity and mortality experience, partly offset by unfavorable lapse and other policyholder experience, unfavorable expense experience including investments in the growing the businesses, and unfavorable other experience including the impact related to relocating the company's head office. Starting with the first quarter, Sun Life no longer reports operating net income and its related measures. The adjustments previously used to derive operating net income will continue to be used to derive underlying net income.
Reported net income rose year over year to C$574 million, or 93 cents per share, from C$480 million, or 78 cents per share.
Underlying net income for the asset management segment in the second quarter was C$199 million, an increase from C$153 million in the year-ago quarter.
Sun Life's board also authorized the purchase of up to 11.5 million common shares, or about 1.9% of the total number of outstanding shares as of July 31, through a normal course issuer bid expected to start Aug. 14 and continue through Aug. 13, 2018, or until the company completes the purchases.