Sun Life posts 11% Q2 underlying net income growth, ROE at 19.1%

Sun Life Financial Inc. reported stronger second-quarter earnings for the period ended June 30, 2026, with underlying net income rising to $1,123 million from $1,015 million a year earlier and reported net income increasing to $1,008 million from $716 million. Underlying EPS climbed 13% to $2.02, reported EPS rose 44% to $1.81, and underlying return on equity reached 19.1%, while reported ROE was 17.2%. Assets under management, or AUM (client assets overseen), increased 10% to $1,696 billion, and SLF Inc.'s LICAT ratio, or Life Insurance Capital Adequacy Test (Canadian insurer capital measure), stood at 145%. The company said growth was driven by broad-based strength in Canada, Asia and the U.S. Group insurance sales rose 27% to $680 million, individual insurance sales increased 16% to $1,002 million, and asset management net flows and net wealth sales were $2,105 million, compared with an outflow of $14,190 million a year earlier. Management highlighted momentum in health and individual protection, alternatives, private credit and product innovation, alongside continued investment in digital tools and AI (artificial intelligence) across the business. By segment, Sun Life Asset Management posted underlying net income of US$262 million, Canada contributed $427 million, the U.S. generated US$164 million, and Asia delivered $222 million, while Corporate recorded an underlying net loss of $117 million. Reported results were helped by favourable public equity market impacts, improved other market-related impacts, improved real estate experience and, in the U.S., the absence of the prior-year impairment charge tied to the early termination of a dental contract. The company also pointed to strategic developments including the July 2, 2026 acquisition of Bell Partners, MFS' ETF expansion, Crescent's fund closings, and a range of AI-enabled product and operating initiatives across Canada, the U.S. and Asia.