Sun Life Reports Fourth Quarter and Full Year 2025 Results

Executive Summary

• Sun Life Financial reported Q4 2025 underlying net income of C$1,094 million (up 13% YoY) and full‑year underlying net income of C$4,201 million (up 9% YoY).
• Reported net income surged to C$722 million for the quarter (up 205% YoY) and C$3,472 million for the year (up 14% YoY), driven by strong underlying earnings and favorable market impacts.
• Assets under management grew to C$1.605 trillion (+4% YoY); LICAT ratio improved to 157%, indicating robust capital strength.

Key Details

• Underlying Net Income: Q4 2025 C$1,094 million (↑13% YoY); FY 2025 C$4,201 million (↑9% YoY).
• Reported Net Income: Q4 2025 C$722 million (↑205% YoY); FY 2025 C$3,472 million (↑14% YoY).
• Underlying EPS: $1.96 per share (↑17% QoQ); FY 2025 $7.45 per share (↑12% YoY).
• Reported EPS: $1.29 per share (↑215% QoQ); FY 2025 $6.15 per share (↑17% YoY).
• Return on Equity: Underlying ROE 19.1%; Reported ROE 12.6% (both up from Q4 2024).
• Segment Performance:
• Asset Management & Wealth underlying net income C$534 million (+10% QoQ).
• Group – Health & Protection underlying net income C$308 million (+16% QoQ).
• Individual – Protection underlying net income C$362 million (+17% QoQ).
• Corporate: Underlying loss of C$110 million (higher financing costs for SLC Management acquisition). Reported loss C$167 million.
• AUM: Total C$1,604.9 billion, up C$62.2 billion (+4% YoY).
• LICAT Ratio: 157% at year‑end (up 5 pts YoY).
• Dividend Payout Ratio: 47%; dividend per share $0.92.
• Capital Transactions: Issued two $1 billion subordinated debentures (Series 2025‑1 & 2025‑2); net proceeds earmarked for corporate purposes, including SLC Management acquisitions and strategic investments.
• Normal Course Issuer Bid: Ongoing NCIB 2025 with capacity to repurchase up to 10.57 million shares through May 2026.
• Acquisitions/Investments: Completed acquisition of remaining interests in SLC Management affiliates; increased ownership in Bowtie Life Insurance to 55.8% (cash consideration $55 million).
• Operational Highlights:
• New digital health program launched in Canada serving >10,000 participants.
• Expanded office in Dubai International Financial Centre for HNW clients.
• BentallGreenOak closed US Industrial Strategies fund ($800 million) and formed joint venture with Stoneweg Spain (€500 million).
• Earnings Call: Scheduled for Thursday, Feb 12 2026 at 11:00 a.m. ET (webcast available).

Notable Quotes

“Sun Life delivered strong fourth quarter performance driven by disciplined execution… underlying return on equity of 19.1%,” – Kevin Strain, President & CEO.
“We closed 2025 with nine percent full‑year underlying net income growth… dividend payout ratio of 47%,” – Kevin Strain.