Operating earnings per share (EPS) were up 10 percent over the same period last year, while operating return on equity (ROE) grew to 13.2 percent for the quarter, up from 12.6 percent for the first quarter of 2005.
SLF chief executive officer Donald A. Stewart attributes the company’s successful first quarter results to the integration of CMG Asia, which was acquired late last year.
"This important advancement in Hong Kong positions us for continued growth in Asia, while demonstrating Sun Life Financial’s integration capabilities internationally," Stewart added. "We further expanded the company’s distribution reach by entering into new distribution relationships in the United States, increasing our sales force and bancassurance alliances in India, and launching operations in additional cities in China. The quarter reflects our ability to grow through strategic acquisitions and by building scale organically through distribution."
First quarter net income fell by four percent for the Canada unit compared to last year primarily due to unusually favorable annuity mortality experience in individual insurance and investments last year. Group benefits earnings decreased by three percent as long-term disability claims were higher in the current quarter. Group wealth earnings however grew by 21 percent reflecting higher equity markets and business growth.
In the United States, first quarter earnings rose 54 percent while in contrast its Uninted Kingdom performance dropped CDN$9 million lower.
In Asia, net income following the after-tax CMG integration charge of CDN$2 million, were up CDN$18 million over the same period a year ago primarily due to the CMG Asia acquisition, to stronger synergies and higher investment yields and improved asset liability matching.
Strong sales results in the quarter and new distribution arrangements further enhanced the positioning of SLF Asia for profitable long-term growth.
In India, Birla Sun Life Insurance Co. Ltd’s expansion program to double the direct sales force progressed well and contributed to a 37 percent year-over-year growth in sales in local currency.
Birla Sun Life finalized bancassurance agreements during the quarter with five cooperative banks in India.
In China, Sun Life Everbright Life Insurance Co. Ltd, its joint venture operation in China, registered a 135 percent growth in sales in local currency, with the development of new agency operations in Zhejiang province and strong alternate distribution production.
In the Philippines, Sun Life improved its total pre-need sales in terms of Initial Cash Brought In (ICBI) by 595 percent versus the previous year, grabbing the overall second spot in industry ranking in January 2006.
Similarly, Sun Life Philippines Asset Management Company’s (SLAMC) Bond Fund, one of the wealth management firm’s more popular investment funds, recorded a robust year-to-date after tax yield of 5.24 percent in the first quarter of 2006. The local company’s top performing fund in the first quarter was the Equity Fund which grew by 70 percent in the first quarter of 2006.