Sun Life’s Financial Inc.’s earnings dipped 33 percent in the second quarter of 2016 compared to same period one year ago, the life insurer disclosed today.

Sun Life Financial reported net income of 480 million in the second quarter of 2016, $246 million less than in the year year-ago period. Second quarter operating net incomewas $474, down 35 percent from $731 million reported in the second quarter of 2015.

See also: Sun Life closes on Assurant benefits business

Other highlights from SunLife’s second quarter results include:

  • Minimum continuing capital and surplus requirements ratio for Sun Life Assurance Company of Canada totaled 214 percent.

  • Cash and other liquid assets amounted to $804 million for Sun Life Financial Inc. and its wholly-owned holding companies(3)

  • Global assets under management of $865 billion compared to $891 billion at year-end 2015

  • Quarterly common share dividend of $0.405 per share

“Sun Life’s strategy stood up well during the second quarter, delivering $554 million in underlying net income and an 11.9% underlying ROE in the face of a challenging environment,” says Sun Life Financial President and CEO Dean Connor in a prepared statement. “We made good progress at integrating our acquisitions announced last year; increased ownership in our Asian joint venture operations; and continued our investment in organic growth. Combined, these are reflected in a 26 percent increase in our insurance sales and a 3 percent increase in wealth sales.

“From the perspective of our clients, we continued to deliver strong medium and longer-term investment results in our asset management businesses; delivered claims and benefits payments of $7.5 billion in the first six months of the year; rolled out new digital tools in Canada and Asia to make it easier to do business with us; and brought to our clients one of the broadest portfolios of ancillary group benefits in the U.S. in the quarter, as we welcomed the Assurant clients this year,” Connor added.

See the next page for a recap of the quarter-over-quarter results

See also: 

Sun Life to buy Assurant unit with $975 million investment

Sun Life exec: Jumbo employers are overcoming PPACA flu

 

  Quarterly results Year-to-date
  Q2’16 Q2’15 Q2’16 Q2’15
Reported net income ($ millions) 480 726 1,020 1,167
Operating net income ($ millions) 474 731 1,005 1,177
Underlying net income ($ millions) 554 615 1,136 1,131
Reported EPS ($) 0.78 1.18 1.66 1.9
Operating EPS ($) 0.77 1.19 1.64 1.92
Underlying EPS ($) 0.9 1 1.85 1.85
Operating ROE 10.10% 16.50% 10.70% 13.40%
Underlying ROE 11.90% 13.90% 12.10% 12.90%