1 August 2019 11:30
Photo : Freepik
After Great-West Lifeco, a second large insurer’s canadian life displays results down in the second quarter of 2019 compared to the same period last year.
In fact, the Sun Life Financial declares a net income of $ 595 million ($M) for the second quarter of 2019. The result of the group is down 16 % compared to the second quarter of 2018, which had a net profit of 706 Million$. The company will point to the negative impact of the markets and the changes it has made to its assumptions and measures to explain the decline.
Insurance sales amounted to$ 657 Million, up 4 % compared to the same period last year. As to the subscriptions of wealth management products, they amounted to 37 billion dollars (G$). They are up 20 % compared to the second quarter of 2018, when they were 30.8 G$.
Canada : income and insurance purchases decline
In respect of its canadian operations, the company declares a net income of$ 148 Million in the second quarter of 2019, compared to 262 Million$ second quarter of 2018. To explain this decrease of 44 %, Sun Life advance the same arguments to explain the decline in the level of the group.
Insurance purchases carried out on the canadian market to reach$ 194 Million in the second quarter of 2019. They were 266 Million during the second quarter of 2019. The decrease is 27 %. This result reflects “the decline of subscriptions made by the collective Guarantees due to the time of the sale of material contracts and sales of individual insurance,” says Sun Life.
Still in Canada, sales of wealth management products amounted to$ 3.2 billion in the second quarter of 2019, against$ 3 billion in the second quarter of 2018. This increase of 7 % occurs because of the increase of subscriptions made by the pension Plans, which continue to be a leader of the sector in terms of assets under administration, ” says Sun Life.