10 May, 2019 13:30
The Sun Life Financial reported a net profit of 623 million dollars ($M) in the first quarter of 2019, a decrease of almost 7 % compared to the corresponding quarter of the previous year. The company attributes this decrease to ” the interest of$ 110 Million on the capital launch of the account of contracts with participation in the first quarter of 2018 “.
In addition, Sun Life prides itself on having crossed the one trillion dollars in assets under management as of march 31, 2019. It is an “important step” for the company, points out Dean Connor, president and chief executive officer of Sun Life Financial.
Lower net income in Canada
The canadian operations of Sun Life saw a decline of their net income. It went from$ 249 Million to$ 237 Million, a decrease of 5 %.
The growth of insurance purchases, which surged 22 % to reach 362 Million, respectively, was offset by a fall in subscriptions of wealth management products of 26 %. In the first quarter of 2018, they were $ 3.8 billion ($G$), and it increased to$ 2.8 billion in the first quarter of 2019.
The first benefited from the sale of the “material contracts” in the group insurance and to an increase in sales of individual insurance, says the insurer.
The decrease of 26 % in wealth management is attributable to the sale of a significant contract by the pension plans in the first quarter of 2018 and to a RRSP season more low, according to Sun Life.