Sun Life Reports First Quarter 2026 Results
Rhea-AI Summary
Sun Life (TSX: SLF) reported Q1 2026 results with underlying net income of $1,050 million (up $5 million YoY) and underlying EPS of $1.89 (up 4% YoY). Reported net income was $465 million (down 50% YoY). AUM reached $1,575 billion and LICAT stood at 143%. Management announced a renewed NCIB for up to 10 million shares and raised the quarterly dividend from $0.92 to $0.96 per share. Key drivers included strong Asia, Canada and U.S. Health & Risk results, asset management acquisitions, and notable charges related to SLC Management equity purchases and a proposed legal settlement.
Positive
- Underlying net income $1,050M (↑$5M YoY)
- Underlying EPS $1.89 (↑4% YoY)
- AUM $1,575B (↑$23B YoY)
- Dividend increased from $0.92 to $0.96 per share
- Completed full acquisition of remaining BGO and Crescent stakes
Negative
- Reported net income $465M (↓50% YoY)
- Reported EPS $0.84 (↓48% YoY)
- LICAT ratio 143% (down from 149% YoY)
- Charges of $165M for SLC Management equity and $145M proposed legal settlement
Key Figures
Market Reality Check
Peers on Argus
SLF gained 1.48% while peers were mixed: ACGL up 0.52%, BNT up 1.35%, but AIG, AEG and WTW down between 0.36% and 4.68%. Moves do not show a clear sector‑wide pattern, pointing to company‑specific drivers.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q4 & FY 2025 earnings | Positive | +5.9% | Strong Q4 and full‑year 2025 underlying growth with higher EPS and AUM. |
| Nov 05 | Q3 2025 earnings | Positive | -4.2% | Q3 2025 underlying growth and dividend increase but weaker reported income. |
| Aug 07 | Q2 2025 earnings | Positive | -8.1% | Strong Q2 2025 results with record Asia income and higher AUM and LICAT. |
| May 08 | Q1 2025 earnings | Positive | +3.7% | Q1 2025 underlying net income up 19% with higher ROE and dividend. |
| Feb 12 | Q4 & FY 2024 earnings | Negative | -6.3% | Q4 2024 reported net income fell sharply on lower tax‑exempt income and charge. |
Earnings have generally delivered solid underlying growth, but price reactions have been mixed, with both rallies and selloffs following results.
Over the past five earnings cycles, Sun Life has consistently reported higher underlying net income and EPS, with AUM climbing above $1.6 trillion and LICAT ratios typically above 150%. However, reported net income has at times been pressured by market impacts and one‑time charges, including a Vietnam impairment and other headwinds. Today’s Q1’26 release continues the theme of resilient underlying performance ($1,050M underlying net income, 18.6% ROE) contrasted with a sharp drop in reported net income and notable charges, fitting this mixed but fundamentally solid trajectory.
Historical Comparison
Over the last 5 earnings releases, SLF’s average move was -1.79%. Today’s +1.48% gain contrasts with that modestly negative historical reaction pattern.
Results show a progression of steadily rising underlying earnings, ROE and AUM from 2024 through 2025 into Q1 2026, while reported income periodically reflects one‑time charges and market impacts.
Market Pulse Summary
This announcement highlights resilient core performance in Q1 2026, with underlying net income of $1,050M, EPS of $1.89 and ROE of 18.6%, alongside AUM rising to $1,575B. Reported net income fell to $465M on market impacts and transaction‑related charges. Investors may focus on segment trends in Asia, Canada and U.S. Health & Risk Solutions, the planned renewal of the issuer bid, the dividend increase to $0.96, and how future quarters balance underlying strength against one‑time items.
Key Terms
normal course issuer bid financial
contractual service margin technical
management equity plan financial
mandatory provident fund regulatory
straight‑through processing technical
AI-generated analysis. Not financial advice.
Sun Life(1) delivered solid earnings in Q1, with strong growth in
- Underlying net income(2) of
$1,050 million $5 million - Reported net income(3) of
$465 million $463 million 50% from Q1'25. - Underlying EPS(2)(4) of
$1.89 4% from Q1'25; reported EPS(4) of$0.84 48% from Q1'25. - Underlying return on equity ("ROE")(2) was
18.6% ; reported ROE(2) was8.2% . - Assets under management ("AUM")(2) of
$1,575 billion $23 billion - SLF Inc. LICAT ratio of
143% (5). - Intention to renew our normal course issuer bid to purchase up to 10 million common shares(6).
- Increase to common share dividend from
$0.92 $0.96
"This quarter we delivered strong growth in our protection businesses led by
"At the same time, we continued momentum in advancing our digital and AI strategic objectives, using data, automation and intelligent solutions that simplify experiences, deepen engagement and improve outcomes for our Clients around the world."
Financial and Operational Highlights
Quarterly results | |||
Profitability | Q1'26 | Q1'25 | |
Underlying net income ($ millions)(2) | 1,050 | 1,045 | |
Reported net income - Common shareholders - before Q1'26 notable items ($ millions)(2)(7) | 775 | 928 | |
Reported net income - Common shareholders ($ millions) | 465 | 928 | |
Underlying EPS ($)(2)(4) | 1.89 | 1.82 | |
Reported EPS ($)(4) | 0.84 | 1.62 | |
Underlying ROE(2) | 18.6 % | 17.7 % | |
Reported ROE(2) | 8.2 % | 15.7 % | |
Growth | Q1'26 | Q1'25 | |
Asset management gross flows & wealth sales ($ millions)(2) | 62,365 | 62,221 | |
Asset management net flows & net wealth sales ($ millions)(2) | (17,844) | (6,154) | |
Group insurance sales ($ millions)(2)(8) | 552 | 580 | |
Individual insurance sales ($ millions)(2)(9) | 1,153 | 874 | |
Assets under management ("AUM") ($ billions)(2)(10) | 1,575 | 1,552 | |
New business Contractual Service Margin ("CSM") ($ millions)(2) | 429 | 406 | |
Financial Strength | Q1'26 | Q1'25 | |
LICAT ratios (at period end)(5) | |||
Sun Life Financial Inc. | 143 % | 149 % | |
Sun Life Assurance(11) | 134 % | 141 % | |
Financial leverage ratio (at period end)(2)(12) | 23.2 % | 20.1 % | |
Financial and Operational Highlights - Quarterly Comparison (Q1'26 vs. Q1'25)
($ millions) | Q1'26 | |||||
Sun Life | Sun Life Asset | Canada | U.S. | Asia | Corporate | |
Underlying net income(2) | 1,050 | 363 | 370 | 218 | 216 | (117) |
Reported net income - Common shareholders - before Q1'26 notable items ($ millions)(2)(7) | 775 | 339 | 232 | 151 | 183 | (130) |
Reported net income (loss) - Common shareholders | 465 | 174 | 87 | 151 | 183 | (130) |
Change in underlying net income (% year-over-year) | — % | (7) % | 7 % | — % | 17 % | nm(13) |
Change in reported net income - before Q1'26 notable items (% year-over-year)(2)(7) | (16) % | (8) % | (27) % | (19) % | 19 % | nm(13) |
Change in reported net income (% year-over-year) | (50) % | (53) % | (73) % | (19) % | 19 % | nm(13) |
Asset management gross flows & wealth sales(2) | 62,365 | 55,307 | 5,877 | — | 1,181 | — |
Group insurance sales(2) | 552 | — | 295 | 220 | 37 | — |
Individual insurance sales(2) | 1,153 | — | 114 | — | 1,039 | — |
Change in asset management gross flows & wealth sales (% year-over-year) | — % | — % | (6) % | — | 26 % | — |
Change in group insurance sales (% year-over-year) | (5) % | — | (21) % | 25 % | 28 % | — |
Change in individual insurance sales (% year-over-year) | 32 % | — | (18) % | — | 41 % | — |
Underlying net income(14) of
- Strong performance in
Asia reflecting business growth inHong Kong , andCanada from higher fee income driven by higher AUM; mostly offset by - Lower results in Sun Life Asset Management reflecting lower catch-up fees and net seed investment income at SLC Management, higher financing costs in Corporate supporting the acquisition of our remaining interests in SLC Management affiliates, and the unfavourable impacts from foreign exchange translation.
Reported net income of
- Market-related impacts primarily reflecting unfavourable interest rate impacts;
- A
$165 million - A
$145 million Canada (15).
Foreign exchange translation led to a decrease of
Underlying ROE was
Business Group Highlights
Sun Life Asset Management: A global leader in asset management
Sun Life Asset Management underlying net income of
- MFS(16) was up
US reflecting higher fee income from higher average net assets ("ANA") partially offset by higher expenses. Pre-tax net operating profit margin(2) improved to$13 million 36.0% for Q1'26, compared to35.4% in the prior year, due to higher ANA. - SLC Management was down
US reflecting lower net seed investment income and fee-related earnings(2), which decreased$27 million 25% driven by higher catch-up fees in the prior year partially offset by lower expenses. Fee-related earnings margin(2) was26.3% for Q1'26, compared to24.0% in the prior year. - Solutions & Other was up
US reflecting favourable net investment results.$6 million
Reported net income of
- A
US charge from the acquisition of remaining equity interests in SLC Management affiliates(15);$119 million - Unfavourable market-related impacts; and
- Lower underlying net income.
Foreign exchange translation led to a decrease of
Sun Life Asset Management gross flows(2) increased
Total Sun Life Asset Management AUM(2) at Q1'26 was
- MFS:
US (Q1'25 -$622.2 billion US );$603.8 billion - SLC Management:
US (Q1'25 -$188.9 billion US ); and$177.2 billion - Solutions & Other:
US (Q1'25 -$56.7 billion US ).$35.4 billion
Total Sun Life Asset Management managed assets(2) at Q1'26 of
Total Sun Life Asset Management net outflows(2) of
- MFS net outflows of
US (Q1'25 - net outflows of$16.3 billion US ) from retail net outflows reflecting continued outflows in$8.1 billion U.S. equity markets by retail investors, and institutional portfolio rebalancing; and - Solutions & Other net outflows of
US (Q1'25 - net inflows of$0.2 billion US ); partially offset by$0.8 billion - SLC Management net inflows of
US (Q1'25 - net inflows of$3.9 billion US ) from capital raising.$2.0 billion
Effective January 1, 2026, we extended and formalized our asset management pillar within Sun Life Asset Management. This structure is intended to accelerate growth across asset management, insurance, and wealth businesses and support strategic partnerships for the benefit of Clients. Sun Life's asset management financial results reflect this structure effective the same date.
During the first quarter, we completed the acquisition of the remaining equity interests in BentallGreenOak ("BGO") and Crescent Capital Group ("Crescent"), reinforcing our conviction in their leadership, performance, and long-term growth potential. We acquired the remaining
As part of the final purchase and go‑forward operating model, SLC Management introduced a Management Equity Plan ("MEP") allowing eligible employees to collectively own up to
We also announced our intention to fully acquire Bell Partners Inc., a leading
- Business growth reflecting higher premiums in Sun Life Health, higher fee income from higher AUM, and favourable net investment results; partially offset by
- Less favourable insurance experience.
Reported net income of
- A
$145 million - Market-related impacts reflecting unfavourable interest rate, equity market, and real estate experience(17); partially offset by
- The increase in underlying net income.
- Asset management gross flows & wealth sales of
$6 billion 6% , reflecting lower large case sales compared to a strong prior year in Group Wealth(19) defined contributions, mostly offset by higher mutual fund sales in Individual Wealth and increased rollover volumes in Group Wealth(19). - Sun Life Health sales of
$295 million 21% , reflecting lower large case sales compared to a strong prior year. - Individual insurance sales of
$114 million 18% , reflecting lower participating life sales.
We continue to strengthen our wealth platform by delivering strong investment solutions and enhanced Client experiences. During the first quarter, we expanded Sun Life Global Investments' ("SLGI") product lineup with the launch of two new low volatility exchange traded fund ("ETF") series, providing Clients with enhanced access to global and international equity markets. We also expanded AI‑enabled Knowledge Assist across our Group Retirement Services Client Care Centre, simplifying access to plan‑specific information to support faster, more consistent service for Clients. In Q1'26, our wealth platform reached
Further, in Sun Life Health, we continued to strengthen workplace health support for plan sponsors and members. Sun Life Benefits Explorer, launched in February, is an analytics tool that helps plan sponsors better understand and manage their benefits plans through data‑driven insights. We also advanced comprehensive women's health support in the workplace with the launch of menopause care provided by Dialogue. Through Lumino Health Virtual Care, plan members and eligible dependents now have access to personalized care plans, a multidisciplinary clinical team with additional training in menopause care, and coaching and navigation support.
- Higher results in In-force Management reflecting favourable net investment results; mostly offset by
- Lower earnings in Dental driven by lower revenue and the impact of a retroactive premium payment in the prior year.
- Group Benefits reflected strong revenue growth and improved medical stop-loss morbidity experience, partially offset by unfavourable long-term disability experience.
Reported net income of
Foreign exchange translation led to a decrease of
- Higher medical stop-loss sales in Group Benefits reflecting disciplined pricing, strong close rates, and favourable market conditions; and
- Higher commercial and Medicare Advantage sales in Dental.
We expanded Sun Life Expert Cancer Review to members with a cancer-related disability claim or a critical illness claim, enabling earlier support closer to the time of diagnosis. When these claims are submitted, eligible members are connected to Expert Cancer Review services through their employers' Sun Life stop-loss coverage. The program provides second medical opinions on cancer diagnoses, helping members receive the treatment plan best suited to their needs.
In Dental, we launched Kid Smile Complete, a new employer‑offered solution designed to increase access to preventive dental care for children by removing cost barriers. Kid Smile Complete provides full in‑network coverage with no deductible for dependent children under age 13 for preventive, basic, and major services. By eliminating out‑of‑pocket costs for preventive care, the program encourages greater utilization, supporting improved oral health and long‑term health outcomes for working families.
- Strong sales momentum and in-force business growth in
Hong Kong ; and - Lower expenses and favourable net investment results; partially offset by
- Lower fee income from the transitioning of the administration business to the centralized eMPF platform in
Hong Kong .
Reported net income of
Foreign exchange translation led to a decrease of
- Individual insurance sales of
$1 billion 41% , reflecting higher sales inHong Kong across all channels, with positive momentum in our Joint Venture and High Net Worth businesses. - Asset management gross flows and wealth sales of
$1 billion 26% , reflecting higher Mandatory Provident Fund ("MPF") sales inHong Kong and higher group fund sales inIndia .
New business CSM of
Across our markets, we launched new products to better serve the needs of our Clients. In
We are also continuing to invest in our digital capabilities to improve operational efficiency and enhance the Client experience. In
Corporate
Underlying net loss was
Reported net loss was
_____________________ | |
(1) | Sun Life Financial Inc. ("SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "the Company", "Sun Life", "we", "our", and "us". We manage our operations and report our financial results in five business groups: Sun Life Asset Management, |
(2) | Represents a non-IFRS financial measure (International Financial Reporting Standards ("IFRS")). For more details, see the Non-IFRS Financial Measures section in this document and in our Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2026 ("Q1'26 MD&A"). |
(3) | Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS. |
(4) | All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated. |
(5) | Life Insurance Capital Adequacy Test ("LICAT") ratio. Our LICAT ratios are calculated in accordance with the OSFI-mandated guideline, Life Insurance Capital Adequacy Test. |
(6) | Subject to the approval of the Office of the Superintendent of Financial Institutions ("OSFI") and the Toronto Stock Exchange ("TSX"). |
(7) | Excludes a |
(8) | "Group insurance sales" include sales from Sun Life Health in |
(9) | "Individual insurance sales" include sales from Individual Insurance in |
(10) | Prior period amounts have been updated. |
(11) | Sun Life Assurance Company of |
(12) | The calculation for the financial leverage ratio includes the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was |
(13) | Not meaningful. |
(14) | Refer to section C - Profitability in the Q1'26 MD&A for more information on notable items attributable to reported and underlying net income items and the Non-IFRS Financial Measures in this document for a reconciliation between reported net income and underlying net income. |
(15) | For additional details see the "Other Transactions" heading in Section F - Financial Strength of the Q1'26 MD&A. |
(16) | MFS Investment Management ("MFS"). |
(17) | Real estate experience reflects the difference between the actual value of real estate investments compared to management's longer-term expected returns supporting insurance contract liabilities ("real estate experience"). |
(18) | Compared to the prior year. |
(19) | Effective Q1'26, we report our Group Retirement Services business unit under "Group Wealth". |
(20) | Assets under management and administration ("AUMA") is a non-IFRS financial measure that consists of both AUM and assets under administration ("AUA"). For more details, see the Non-IFRS Financial Measures section in this document and in the Q1'26 MD&A. |
(21) | Salam Healthier Future Assurance ("SHIFA") Essential. |
(22) | SunRise Universal Life Insurance II (8‑pay). |
Earnings Conference Call
The Company's Q1'26 financial results will be reviewed at a conference call on Thursday, May 7, 2026, at 11:00 a.m. ET. Visit www.sunlife.com/QuarterlyReports 10 minutes prior to the start of the event to access the call through either the webcast or conference call options. Individuals participating in the call in a listen-only mode are encouraged to connect via our webcast. Following the call, the webcast and presentation will be archived and made available on the Company's website, www.sunlife.com, until the Q1'27 period end.
The information in this document is based on the unaudited interim financial results of SLF Inc. for the period ended March 31, 2026 and should be read in conjunction with the interim management's discussion and analysis ("MD&A") and our unaudited interim consolidated financial statements and accompanying notes ("Interim Consolidated Financial Statements") for the period ended March 31, 2026, prepared in accordance with International Financial Reporting Standards ("IFRS"). Additional information relating to SLF Inc. is available on www.sunlife.com under Investors – Financial results and reports, on the SEDAR+ website at www.sedarplus.ca, and on the
Media Relations: | Investor Relations: |
media.relations@sunlife.com | investor_relations@sunlife.com |
Non-IFRS Financial Measures
We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from period to period. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed in isolation from or as alternatives to measures of financial performance determined in accordance with IFRS. Additional information concerning non-IFRS financial measures and, if applicable, reconciliations to the closest IFRS measures are available in the Q1'26 MD&A under the heading N - Non-IFRS Financial Measures and the Supplementary Financial Information packages that are available on www.sunlife.com under Investors – Financial results and reports.
1. Underlying Net Income and Underlying EPS
Underlying net income is a non-IFRS financial measure that assists in understanding Sun Life's business performance by making certain adjustments to IFRS income. Underlying net income, along with common shareholders' net income (Reported net income), is used as a basis for management planning, and is also a key measure in our employee incentive compensation programs. This measure reflects management's view of the underlying business performance of the company and long-term earnings potential. For example, due to the longer term nature of our individual protection businesses, market movements related to interest rates, equity markets and investment properties can have a significant impact on reported net income in the reporting period. However, these impacts are not necessarily realized, and may never be realized, if markets move in the opposite direction in subsequent periods or in the case of interest rates, the fixed income investment is held to maturity.
Underlying net income removes the impact of the following items from reported net income:
- Market-related impacts reflecting the after-tax difference in actual versus expected market movements;
- Assumptions changes and management actions;
- Other adjustments:
i) MFS shares owned by management;
ii) Acquisition, integration, and restructuring;
iii) Intangible asset amortization;
iv) Other items that are unusual or exceptional in nature.
For additional information about the adjustments removed from reported net income to arrive at underlying net income, refer to section N - Non-IFRS Financial Measures - 2 - Underlying Net Income and Underlying EPS in the Q1'26 MD&A.
The following table sets out the post-tax amounts that were excluded from our underlying net income (loss) and underlying EPS and provides a reconciliation to our reported net income and EPS based on IFRS.
Reconciliations of Select Net Income Measures | Quarterly results | ||||||
($ millions, after-tax) | Q1'26 | Q1'25 | |||||
Underlying net income | 1,050 | 1,045 | |||||
Market-related impacts | |||||||
Equity market impacts | (53) | (48) | |||||
Interest rate impacts(1) | (120) | 57 | |||||
Impacts of changes in the fair value of investment properties (real estate experience) | (47) | (31) | |||||
Add: | Market-related impacts | (220) | (22) | ||||
Add: | Assumption changes and management actions | 4 | (4) | ||||
Other adjustments | |||||||
MFS shares owned by management | 2 | 5 | |||||
Acquisition, integration and restructuring(2)(3)(4) | (183) | (54) | |||||
Intangible asset amortization | (43) | (39) | |||||
Other(5) | (145) | (3) | |||||
Add: | Total of other adjustments | (369) | (91) | ||||
Reported net income - Common shareholders | 465 | 928 | |||||
Underlying EPS (diluted) ($) | 1.89 | 1.82 | |||||
Add: | Market-related impacts ($) | (0.40) | (0.04) | ||||
Assumption changes and management actions ($) | 0.01 | (0.01) | |||||
MFS shares owned by management ($) | — | 0.01 | |||||
Acquisition, integration and restructuring ($) | (0.33) | (0.09) | |||||
Intangible asset amortization ($) | (0.08) | (0.07) | |||||
Other ($) | (0.26) | (0.01) | |||||
Impact of convertible securities on diluted EPS ($) | 0.01 | 0.01 | |||||
Reported EPS (diluted) ($) | 0.84 | 1.62 | |||||
(1) | Our results are sensitive to long-term interest rates given the nature of our business and to non-parallel yield curve movements (for example flattening, inversion, steepening, etc.). |
(2) | Amounts relate to acquisition costs for our SLC Management affiliates, which include the unwinding of the discount for Other financial liabilities of $nil in Q1'26 (Q1'25 - |
(3) | Q1'26 includes a |
(4) | Includes acquisition, integration and restructuring costs associated with DentaQuest, acquired on June 1, 2022. |
(5) | Q1'26 includes a |
The following table shows the pre-tax amount of underlying net income adjustments:
Quarterly results | |||
($ millions) | Q1'26 | Q1'25 | |
Underlying net income (after-tax) | 1,050 | 1,045 | |
Underlying net income adjustments (pre-tax): | |||
Add: | Market-related impacts | (247) | (28) |
Assumption changes and management actions ("ACMA")(1) | 5 | (5) | |
Other adjustments | (549) | (113) | |
Total underlying net income adjustments (pre-tax) | (791) | (146) | |
Add: | Taxes related to underlying net income adjustments | 206 | 29 |
Reported net income - Common shareholders (after-tax) | 465 | 928 | |
(1) | In this document, the reported net income impact of ACMA excludes amounts attributable to participating policyholders and includes non-liability impacts. In contrast, the Interim Consolidated Financial Statements for the period ended March 31, 2026 (Note 10.B.v of the 2025 Annual Consolidated Financial Statements) shows the pre-tax net income impacts of method and assumption changes, and CSM Impacts include amounts attributable to participating policyholders. |
Taxes related to underlying net income adjustments may vary from the expected effective tax rate range reflecting the mix of business based on the Company's international operations and other tax-related adjustments.
2. Additional Non-IFRS Financial Measures
Management also uses the following non-IFRS financial measures, and a full listing is available in section N - Non-IFRS Financial Measures in the Q1'26 MD&A.
Assets under management. AUM is a non-IFRS financial measure that indicates the size of our Company's assets across asset management, wealth, and insurance. There is no standardized financial measure under IFRS. In addition to the most directly comparable IFRS measures, which are the balance of General funds and Segregated funds on our Statements of Financial Position, AUM also includes Third-party and other AUM and Consolidation adjustments. "Consolidation adjustments" is presented separately as consolidation adjustments apply to all components of total AUM. For additional information about Third-party and other AUM, refer to sections D - Growth - 2 - Assets Under Management and N - Non-IFRS Financial Measures in the Q1'26 MD&A.
Quarterly results | ||
($ millions) | Q1'26 | Q1'25 |
Assets under management | ||
General fund assets | 232,035 | 223,310 |
Segregated funds | 166,277 | 149,650 |
Third-party and other AUM(1) | 1,258,087 | 1,224,770 |
Consolidation adjustments(1)(2) | (81,132) | (46,092) |
Total assets under management(2) | 1,575,267 | 1,551,638 |
(1) | Represents a non-IFRS financial measure. For more details, see section N - Non-IFRS Financial Measures in the Q1'26 MD&A. |
(2) | Prior period amounts have been updated. |
Cash and other liquid assets. This measure is comprised of cash, cash equivalents, short-term investments, and publicly traded securities, net of loans related to acquisitions and short-term loans that are held at SLF Inc. (the ultimate parent company), and its wholly owned holding companies. This measure is a key consideration of available funds for capital re-deployment to support business growth.
($ millions) | As at March 31, 2026 | As at December 31, 2025 |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies): | ||
Cash, cash equivalents & short-term securities | 930 | 1,859 |
Debt securities(1) | 396 | 537 |
Equity securities(2) | — | — |
Sub-total | 1,326 | 2,396 |
Less: Loans related to acquisitions and short-term loans(3) (held at SLF Inc. and its wholly owned holding | — | — |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies) | 1,326 | 2,396 |
(1) | Includes publicly traded bonds. |
(2) | Includes exchange traded fund ("ETF") Investments. |
(3) | Includes drawdowns from credit facilities to manage timing of cash flows. |
3. Reconciliations of Select Non-IFRS Financial Measures
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax by Business Group
Q1'26 | |||||||
($ millions) | Sun Life Asset Management | | | Corporate | Total | ||
Underlying net income (loss) | 363 | 370 | 218 | 216 | (117) | 1,050 | |
Add: | Market-related impacts (pre-tax) | (6) | (163) | (42) | (25) | (11) | (247) |
Assumption changes and management actions (pre-tax) | 1 | — | — | 4 | — | 5 | |
Other adjustments (pre-tax) | (281) | (210) | (44) | (10) | (4) | (549) | |
Tax expense (benefit) | 97 | 90 | 19 | (2) | 2 | 206 | |
Reported net income (loss) - Common shareholders | 174 | 87 | 151 | 183 | (130) | 465 | |
Q1'25 | |||||||
Underlying net income (loss) | 390 | 346 | 218 | 185 | (94) | 1,045 | |
Add: | Market-related impacts (pre-tax) | 4 | (24) | 15 | (19) | (4) | (28) |
Assumption changes and management actions (pre-tax) | (10) | 8 | — | (3) | — | (5) | |
Other adjustments (pre-tax) | (20) | (23) | (60) | (10) | — | (113) | |
Tax expense (benefit) | 5 | 10 | 13 | 1 | — | 29 | |
Reported net income (loss) - Common shareholders | 369 | 317 | 186 | 154 | (98) | 928 | |
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax by Business Unit - Sun Life Asset Management
Q1'26 | Q4'25 | Q1'25 | |||||
(US$ millions) | MFS | SLC Management | MFS | SLC Management | MFS | SLC Management | |
Underlying net income (loss) | 199 | 32 | 224 | 42 | 186 | 59 | |
Add: | Market-related impacts (pre-tax) | — | (9) | — | (16) | — | (8) |
Other adjustments (pre-tax) | 3 | (208) | 3 | (39) | 6 | (20) | |
Tax expense (benefit) | (2) | 84 | (11) | 24 | (2) | 7 | |
Reported net income (loss) - Common shareholders | 200 | (101) | 216 | 11 | 190 | 38 | |
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax by Business Unit - Sun Life Asset Management
Q1'26 | Q4'25 | Q1'25 | |||||
($ millions) | MFS | SLC Management | MFS | SLC Management | MFS | SLC Management | |
Underlying net income (loss) | 273 | 44 | 312 | 58 | 266 | 85 | |
Add: | Market-related impacts (pre-tax) | — | (12) | — | (22) | — | (11) |
Other adjustments (pre-tax) | 5 | (286) | 5 | (54) | 9 | (29) | |
Tax expense (benefit) | (3) | 115 | (15) | 34 | (4) | 10 | |
Reported net income (loss) - Common shareholders | 275 | (139) | 302 | 16 | 271 | 55 | |
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax in
Q1'26 | Q4'25 | Q1'25 | ||||||
(US$ millions) | Sun Life Asset | Sun Life Asset | Sun Life Asset | |||||
Underlying net income (loss) | 265 | 160 | 304 | 150 | 273 | 151 | ||
Add: | Market-related impacts (pre-tax) | (5) | (30) | (40) | (19) | 2 | 11 | |
Assumption changes and management actions (pre-tax) | 1 | — | — | (4) | (7) | — | ||
Other adjustments (pre-tax) | (205) | (31) | (36) | (49) | (14) | (42) | ||
Tax expense (benefit) | 71 | 12 | 15 | 15 | 4 | 9 | ||
Reported net income (loss) - Common shareholders | 127 | 111 | 243 | 93 | 258 | 129 | ||
Forward-looking Statements
From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements contained in this document include statements (i) relating to our strategies, plans, targets, goals and priorities; (ii) relating to our growth initiatives and other business objectives; (iii) relating to our intention to fully acquire Bell Partners including the expected timing to close the transaction; (iv) relating to our intention to renew our normal course issuer bid; (v) relating to the intended impact of the new Sun Life Asset Management structure; (vi) that are predictive in nature or that depend upon or refer to future events or conditions; and (vii) that include words such as "achieve", "aim", "ambition", "anticipate", "aspiration", "assumption", "believe", "could", "estimate", "expect", "goal", "initiatives", "intend", "may", "objective", "outlook", "plan", "project", "seek", "should", "strategy", "strive", "target", "will", and similar expressions. Forward-looking statements include the information concerning our possible or assumed future results of operations. These statements represent our current expectations, estimates, and projections regarding future events and are not historical facts, and remain subject to change.
Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. Future results and shareholder value may differ materially from those expressed in these forward-looking statements due to, among other factors, the matters set out in the Q1'26 MD&A under the headings C - Profitability - 5 - Income taxes, F - Financial Strength and I - Risk Management and in SLF Inc.'s 2025 AIF under the heading Risk Factors, and the factors detailed in SLF Inc.'s 2025 Annual MD&A under the heading K - Risk Management and in its other filings with Canadian and
Important risk factors that could cause our assumptions and estimates, and expectations and projections to be inaccurate and our actual results or events to differ materially from those expressed in or implied by the forward-looking statements contained in this document, are set out below. The realization of our forward-looking statements essentially depends on our business performance which, in turn, is subject to many risks. Factors that could cause actual results to differ materially from expectations include, but are not limited to: market risks - related to the performance of equity markets; changes or volatility in interest rates or credit spreads or swap spreads; real estate investments; fluctuations in foreign currency exchange rates; and inflation; insurance risks - related to mortality experience, morbidity experience and longevity; policyholder behaviour; product design and pricing; the impact of higher-than-expected future expenses; and the availability, cost and effectiveness of reinsurance; credit risks - related to issuers of securities held in our investment portfolio, debtors, structured securities, reinsurers, counterparties, other financial institutions and other entities; business and strategic risks - related to global economic and geopolitical conditions; the design and implementation of business strategies; changes in distribution channels or Client behaviour including risks relating to market conduct by intermediaries and agents; the impact of competition; the performance of our investments and investment portfolios managed for Clients such as segregated and mutual funds; shifts in investing trends and Client preference towards products that differ from our investment products and strategies; changes in the legal or regulatory environment, including capital requirements and tax laws; environmental and social issues and their related laws and regulations; operational risks - related to breaches or failure of information system security and privacy, including cyber-attacks; our ability to attract and retain employees; legal, regulatory compliance and market conduct, including the impact of regulatory inquiries and investigations; the execution and integration of mergers, acquisitions, strategic investments and divestitures; our information technology infrastructure; a failure of information systems and Internet-enabled technology; dependence on third-party relationships, including outsourcing arrangements; business continuity; model errors; information management; liquidity risks - the possibility that we will not be able to fund all cash outflow commitments as they fall due; and other risks - changes to accounting standards in the jurisdictions in which we operate; risks associated with our international operations, including our joint ventures; market conditions that affect our capital position or ability to raise capital; downgrades in financial strength or credit ratings; and tax matters, including estimates and judgements used in calculating taxes.
The Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.
About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including
Sun Life Financial Inc. trades on the
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SOURCE Sun Life Financial Inc. - Financial News