Sun Life earnings up

Toronto-based financial services giant Sun Life Financial Inc. has posted record earnings of C$512 million, as of end of the second quarter this year. Earnings per share were up by 8.6 percent over the same period last year, while returns on equity grew to 13.6 percent for the quarter, up from 13 percent in the second quarter in 2005.

In the Philippines, sales grew by 69 percent over last year. Contributing significantly to this growth is the robust sales in its pre-need business which posted a hefty 380-percent increase over 2005.

SLF chief executive officer Donald A. Stewart attributes the company’s robust second quarter results to the company’s continuing efforts to enhance global distribution capabilities.

"Continued expansion in India and China underscored our commitment to growth in Asia, and our excellent market position in Canada contributed to strong, stable earnings growth in each of our Canadian businesses this quarter," Stewart added.

For his part, SLF executive vice president and chief financial officer Paul W. Derksen noted that the company continued to deliver on its financial commitments to shareholders with solid earnings growth and return on equity improvement in the second quarter despite lower equity markets and the continued strengthening of the Canadian dollar.

"Demonstrating continued confidence in the sustainability of our earnings growth, Sun Life Financial’s directors raised the common share dividend to 30 cents per share, a total increase of 18 percent this year," Derksen said.

The shareholder dividend of C$0.30 (roughly P14 before taxes) per common share is payable on Oct. 2, 2006 to shareholders of record at the close of business on Aug. 23, 2006.

Second quarter net income increased by C$28 million, or 11.9 percent, for the Canada unit compared to the last year.

SLF Canada benefited from strong investment results in group benefits, better mortality experience in group wealth, increased earnings from CI Financial Inc. (CI) and lower taxes.

In the United States, second quarter earnings fell by 31.8 percent compared to last year’s comparable period, primarily due to the appreciation of the Canadian dollar against the US dollar which reduced earnings in SLF US by C$10 million compared to the same period last year.

In Asia, second quarter 2006 revenues increased 55 percent for the quarter and 39 percent for the six-month period over the same period last year primarily due to the acquisition of CMG and business growth. Earnings of C$31 million increased by C$12 million, or 63 percent over the same period in 2005.

SLF Asia sales momentum continued in the second quarter, with sales up 46 percent in Canadian currency over the same period last year.

In local currencies, Hong Kong sales were up by 79 percent due to the CMG acquisition.

In India, the number of agents crossed the 18,000 mark, doubling the agency count from a year ago, and contributing to the 114-percent growth in agency sales during the first six months of this year.