TORONTO, Feb. 11, 2026 /CNW/ - Sun Life Financial Inc. (TSX:SLF) (NYSE:SLF) announced its results for the fourth quarter and full year ended December 31, 2025.
Underlying net income(1) of $1,094 million increased $129 million or 13% from Q4'24 (full year - $4,201 million increased $345 million or 9% from 2024); underlying EPS(1)(2) of $1.96 increased 17% from Q4'24 (full year - $7.45 increased 12% from 2024 ); underlying return on equity ("ROE")(1) was 19.1% (full year - 18.2%).
Asset management & wealth underlying net income(1)(3): $534 million, up $48 million or 10% (full year - $1,976 million, up $153 million or 8%).
Group - Health & Protection underlying net income(1): $308 million, up $42 million or 16% (full year - $1,248 million, up $52 million or 4%).
Individual - Protection underlying net income(1)(4): $362 million, up $52 million or 17% (full year - $1,347 million, up $146 million or 12%).
Corporate expenses & other(1)(4): $(110) million net loss, an increase of $(13) million in net loss or 13% (full year - $(370) million net loss, an increase of $(6) million in net loss or 2%).
Reported net income of $722 million increased $485 million or 205% from Q4'24 (full year - $3,472 million increased $423 million or 14% from 2024); reported EPS(2) of $1.29 increased 215% from Q4'24 (full year - $6.15 increased 17% from 2024); reported ROE(1) was 12.6% (full year - 15.1%).
Assets under management ("AUM")(1) of $1,605 billion increased $62 billion or 4% from December 31, 2024.
"Sun Life delivered strong fourth quarter performance driven by disciplined execution with underlying net income reaching $1.1 billion, contributing to 17% underlying earnings per share growth over Q4 last year and underlying return on equity of 19.1%," said Kevin Strain, President and CEO of Sun Life.
"Our diversified strategy combined with our focus on our Client and our Purpose proved its strength and resilience throughout the quarter. We saw robust earnings and sales in Asia, solid wealth sales in Canada, and meaningful progress at SLC Management, which exceeded its Investor Day earnings target. We're also pleased with the earnings and sales growth in our U.S. stop-loss business."
Strain added, "We closed 2025 with nine percent full year underlying net income growth, strong sales in asset management, wealth, health, and protection, and a 17% increase in New Business Contractual Service Margin. Our LICAT ratio was 157% and we advanced our Medium-Term Objectives with underlying ROE at 18.2%, underlying EPS growth at 12%, and a dividend payout ratio of 47%."
Financial and Operational Highlights
Quarterly results
Year-to-date
Profitability
Q4'25
Q4'24
2025
2024
Underlying net income ($ millions)(1)
1,094
965
4,201
3,856
Reported net income - Common shareholders ($ millions)
722
237
3,472
3,049
Underlying EPS ($)(1)(2)
1.96
1.68
7.45
6.66
Reported EPS ($)(2)
1.29
0.41
6.15
5.26
Underlying ROE(1)
19.1 %
16.5 %
18.2 %
17.2 %
Reported ROE(1)
12.6 %
4.0 %
15.1 %
13.6 %
Growth
Q4'25
Q4'24
2025
2024
Asset management gross flows & wealth sales ($ millions)(1)
59,861
60,999
236,911
196,074
Group - Health & Protection sales ($ millions)(1)
1,803
1,270
3,416
2,737
Individual - Protection sales ($ millions)(1)
1,027
743
3,751
2,983
Assets under management ("AUM") ($ billions)(1)(5)
1,605
1,543
1,605
1,543
New business Contractual Service Margin ("CSM") ($ millions)(1)
440
306
1,727
1,473
Financial Strength
Q4'25
Q4'24
LICAT ratios (at period end)(6)
Sun Life Financial Inc.
157 %
152 %
Sun Life Assurance(7)
140 %
146 %
Financial leverage ratio (at period end)(1)(8)
23.5 %
20.1 %
___________________
(1)
Represents a non-IFRS financial measure. For more details, see section H - Non-IFRS Financial Measures in this document and in our Management's Discussion and Analysis ("MD&A") for the period ended December 31, 2025 ("2025 Annual MD&A").
(2)
All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated.
(3)
Effective Q1'25, the Wealth & asset management business type was renamed to Asset management & wealth.
(4)
Effective Q1'25, Regional Office in Asia was moved from the Corporate expenses & other business type to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
(5)
Prior period amounts have been updated.
(6)
Life Insurance Capital Adequacy Test ("LICAT") ratio. Our LICAT ratios are calculated in accordance with the OSFI-mandated guideline, Life Insurance Capital Adequacy Test.
(7)
Sun Life Assurance Company of Canada ("Sun Life Assurance") is SLF Inc.'s principal operating life insurance subsidiary.
(8)
The calculation for the financial leverage ratio includes the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was $11.3 billion as at December 31, 2025 (December 31, 2024 - $10.3 billion).
Financial and Operational Highlights - Quarterly Comparison (Q4'25 vs. Q4'24)
($ millions)
Q4'25
Underlying net income by business type(1)(2):
Sun Life
Asset Management
Canada
U.S.
Asia
Corporate
Asset management & wealth
534
370
142
—
22
—
Group - Health & Protection
308
—
155
153
—
—
Individual - Protection(3)
362
—
120
57
185
—
Corporate expenses & other(3)
(110)
—
—
—
—
(110)
Underlying net income(1)
1,094
370
417
210
207
(110)
Reported net income (loss) - Common shareholders
722
318
307
133
131
(167)
Change in underlying net income (% year-over-year)
13 %
3 %
14 %
30 %
18 %
nm(4)
Change in reported net income (% year-over-year)
205 %
(2) %
21 %
nm(4)
nm(4)
nm(4)
Asset management gross flows & wealth sales(1)
59,861
50,405
7,232
—
2,224
—
Group - Health & Protection sales(1)
1,803
—
95
1,682
26
—
Individual - Protection sales(1)
1,027
—
133
—
894
—
Change in asset management gross flows & wealth sales
(% year-over-year)
(2) %
(7) %
46 %
—
8 %
—
Change in group sales (% year-over-year)
42 %
—
8 %
45 %
24 %
—
Change in individual sales (% year-over-year)
38 %
—
(6) %
—
49 %
—
(1)
Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the 2025 Annual MD&A.
(2)
For more information about the business types in Sun Life's business groups, see section A - How We Report Our Results in the 2025 Annual MD&A.
(3)
Effective Q1'25, Regional Office in Asia was moved from the Corporate expenses & other business type to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
(4)
Not meaningful.
Underlying net income(1) of $1,094 million increased $129 million or 13% from prior year, driven by:
Asset management & wealth(1) up $48 million: Improved credit experience and fee income in Canada wealth, higher fee income, net of expenses, in MFS(2), and higher fee-related earnings, offset by lower net seed investment income, in SLC Management.
Group - Health & Protection(1) up $42 million: Improved U.S. medical stop-loss morbidity experience and business growth in Canada, partially offset by higher distribution costs in U.S. Group Benefits.
Individual - Protection(1)(3) up $52 million: Business growth, favourable mortality experience and higher investment earnings in Asia, and favourable mortality experience in the U.S., partially offset by lower contributions from joint ventures in Asia.
Corporate expenses & other(1)(3) $(13) million increase in net loss reflecting higher financing costs supporting the acquisition of our remaining interests in SLC Management affiliates.
Reported net income of $722 million increased $485 million or 205% from prior year, driven by:
Changes in tax-exempt investment income primarily in Corporate(4) reflecting higher losses in the prior year;
The increase in underlying net income; and
The prior year impacts from an impairment charge of $186 million on an intangible asset related to bancassurance in Vietnam and a provision in U.S. Dental; partially offset by
Unfavourable ACMA(5) impacts.
Market-related impacts were in line with the prior year as favourable equity market impacts and improved real estate experience(6) were offset by unfavourable other market-related and interest rate impacts.
Underlying ROE was 19.1% and reported ROE was 12.6% (Q4'24 - 16.5% and 4.0%, respectively). SLF Inc. ended the quarter with a LICAT ratio of 157%.
_______________
(1)
Refer to section C - Profitability in this document 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. For more information about the business types in Sun Life's operating segments/business groups, see section A - How We Report Our Results in the 2025 Annual MD&A.
(2)
MFS Investment Management ("MFS").
(3)
Effective Q1'25, Regional Office in Asia was moved from the Corporate expenses & other business type to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
(4)
Q4'25 results reflect lower than expected tax-exempt investment income of $49 million (Q4'24 - lower than expected tax-exempt investment income of $234 million).
(5)
Assumption Changes and Management Actions ("ACMA").
(6)
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").
Business Group Highlights
Asset Management: A global leader in asset management
Asset Management underlying net income of $370 million increased $10 million or 3% from prior year, driven by:
MFS up $11 million (up $8 million on a U.S. dollar basis): Higher fee income from higher average net assets ("ANA") partially offset by higher expenses. Pre-tax net operating profit margin(1) was 40.0% for Q4'25, compared to 40.5% in the prior year.
SLC Management down $1 million: Higher fee-related earnings offset by lower net seed investment income. Fee-related earnings(1) increased 25% driven by capital raising and higher property management fees. Fee-related earnings margin(1) was 27.5% for Q4'25, compared to 23.0% in the prior year.
Reported net income of $318 million decreased $8 million or 2% from prior year.
Foreign exchange translation led to a decrease of $1 million in underlying net income and reported net income, respectively.
Asset Management gross flows(2) decreased $3.6 billion or 7%, driven by lower gross flows in SLC Management partially offset by higher gross flows in MFS.
Total AUM(1) at Q4'25 was $1,154 billion (Q4'24 - $1,121 billion), consisting of $894 billion (US$651 billion) in MFS (Q4'24 - $871 billion and US$606 billion, respectively) and $260 billion in SLC Management (Q4'24 - $250 billion). Total Asset Management net outflows of $19.5 billion in Q4'25 (Q4'24 - net outflows of $14.3 billion) reflected MFS net outflows of $25.4 billion (US$18.2 billion) (Q4'24 - net outflows of $28.5 billion and US$20.4 billion, respectively) from retail net outflows reflecting continued outflows in U.S. equity markets by retail investors, and institutional portfolio rebalancing, partially offset by SLC Management net inflows of $5.9 billion (Q4'24 - net inflows of $14.1 billion) from capital raising.
Effective January 1, 2026, we extended and formalized our asset management pillar in Sun Life Asset Management. In addition to MFS and SLC Management, Sun Life Asset Management includes Sun Life's stake in Aditya Birla Sun Life Asset Management, previously part of the Asia business segment, as well as Sun Life's pension risk transfer business, previously part of the Canada business segment. This new structure will help accelerate growth between our asset management, insurance, and wealth businesses and drive strategic partnerships to the benefit of our Clients. Effective January 1, 2026, Sun Life's asset management financial results will reflect this new structure.
MFS is focused on meeting Client needs by providing a diverse range of investment products. MFS continued to experience solid fixed income fund performance, generating net inflows(1) of US$5.5 billion for this asset class in the year.
BentallGreenOak ("BGO") closed its inaugural U.S. Industrial Strategies fund, bolstered by data centre co-investment, raising US$800 million in the fourth quarter. This fund reflects BGO's ability to deliver the next generation of digital infrastructure and energy-intensive logistics facilities. In addition, BGO and Stoneweg Spain(3) have launched a strategic joint venture to deliver modern, flexible, and sustainable living solutions, with a planned total investment of €500 million.
InfraRed Capital Partners ("InfraRed") launched a digital infrastructure vehicle with Pantheon, a leading global private markets investor, to invest in the data centre and telecommunications towers sectors in Europe, North America, and Australasia, highlighting InfraRed's digital experience. InfraRed also made a majority investment in NxN Data Centers, a next generation data centre platform based in Spain, to deliver best-in-class data centre infrastructure in a fast-growing digital landscape.
For the second year in a row, the SLC Management team won the 2025 Insurance Investor North American Award for Health Insurance Provider Investment Strategy of the Year, reflecting our team's dedication to building thoughtful and resilient investment strategies with our Clients.
Canada: A leader in health, wealth, and insurance
Canada underlying net income of $417 million increased $51 million or 14% from prior year, driven by:
Asset management & wealth up $41 million: Improved credit experience and higher fee income from higher AUM.
Group - Health & Protection up $2 million: Business growth and favourable mortality experience mostly offset by less favourable morbidity experience.
Individual - Protection up $8 million: Favourable insurance experience.
Reported net income of $307 million increased $54 million or 21% from prior year, driven by the increase in underlying net income and market-related impacts primarily reflecting improved interest rate impacts partially offset by unfavourable other market-related impacts.
Canada's sales(2):
Asset management gross flows & wealth sales of $7 billion were up 46%, driven by Group Retirement Services ("GRS") and higher mutual fund sales in Individual Wealth. GRS sales reflect strong defined benefit solution sales combined with timing of large case sales compared to the prior year, higher defined contribution sales from large case sales, and increased rollover volumes.
Group - Health & Protection sales of $95 million were up 8%, reflecting higher health product sales.
Individual - Protection sales of $133 million were down 6%, reflecting a combination of lower participating life sales and strong non-participating life sales.
____________________
(1)
Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the 2025 Annual MD&A.
(2)
Compared to the prior year.
(3)
Stoneweg is a global alternative investment group specialized in real estate, headquartered in Geneva, Switzerland, and part of SWI Group.
In Individual Insurance, we maintained the leading market position in life and health for five consecutive years(1). Our momentum in non-participating products continued, with gross sales up 10% in 2025 compared to the prior year. Sun Life was also named Life and Health Insurer of the Year at the tenth annual Insurance Business Canada Awards, recognizing our commitment to delivering innovative solutions and exemplary Client service.
In Sun Life Health, we led the market in total sales(2). Our 2025 sales were up 15% compared to the prior year, reflecting growth in large case Clients. In the fourth quarter, we launched a program to expand access to virtual healthcare for underserved communities across Canada, helping more Canadians to get the care they need. Through partnerships with Families Canada, United Way Greater Toronto, and Centraide of Greater Montreal, more than 10,000 participants will receive no-cost care through Dialogue, a leading virtual healthcare and wellness platform in Canada.
U.S.: A leader in health and benefits
U.S. underlying net income of US$150 million increased US$35 million or 30% ($210 million increased $49 million or 30%) from prior year, driven by:
Group - Health & Protection up US$27 million: Higher Group Benefits results primarily reflecting improved medical stop-loss morbidity experience, partially offset by higher distribution costs.
Individual - Protection up US$8 million: Favourable mortality experience.
Reported net income was US$93 million compared to reported net loss of US$1 million in the prior year (reported net income was $133 million compared to reported net loss of $7 million in the prior year), driven by the increase in underlying net income, market-related impacts primarily reflecting improved interest rate impacts, and a prior year provision in Dental, partially offset by DentaQuest acquisition, integration and restructuring costs.
Foreign exchange translation had no significant impact to the change in underlying net income and reported net income, respectively.
U.S. group sales of US$1,206 million were up 45% ($1,682 million, up 45%), primarily driven by medical stop-loss and large case employee benefits sales in Group Benefits, and higher Medicaid sales in Dental.
We continue to make benefits easier and more accessible through new digital capabilities and improved automation. In the fourth quarter, we collaborated with Pasito, an AI-powered platform that connects with more than 200 payroll providers to deliver personalized benefits guidance. This helps members choose plans that fit their needs, their budgets and best complement their health coverage, driving better engagement and member decision making.
We also streamlined the Supplemental Health claims process, strengthening straight-through processing and delivering more automated claims integration this year. These changes improved Client satisfaction(3) scores by 20 points in 2025 and enabled faster claims payments to members by 55% year-over-year, even as claim volumes rose by more than 70% during the same time period.
Asia: A regional leader focused on fast-growing markets
Asia underlying net income of $207 million increased $32 million or 18% from prior year, driven by:
Asset management & wealth down $3 million: Lower fee income related to the transitioning of the administration business to the centralized eMPF platform in Hong Kong.
Individual - Protection(4) up $35 million: Continued strong sales momentum and in-force business growth across most markets, favourable mortality experience in High Net Worth, higher investment earnings, and lower expenses, partially offset by lower contributions from joint ventures and unfavourable credit experience.
Reported net income of $131 million increased $120 million from prior year, driven by the increase in underlying net income and a prior year impairment charge on an intangible asset related to bancassurance in Vietnam, partially offset by unfavourable market-related and ACMA impacts. The market-related impacts were primarily from unfavourable interest rate and other market-related impacts, partially offset by improved equity market impacts.
Foreign exchange translation led to a decrease of $2 million in underlying net income and a decrease of $1 million in reported net income.
________________
(1)
Life Insurance Marketing and Research Association ("LIMRA") Market Share based on annualized premiums and 10% excess premium as of Q3'25, on a year-to-date basis.
(2)
LIMRA Market Share based on sales as of Q3'25, on a year-to-date basis.
(3)
Client satisfaction scores ("CSAT") are sourced from regular monthly surveys of Clients who have recently used our Supplemental Health products. The CSAT score is the overall satisfaction score where claimants were "very satisfied" with their claims experience as of November 2025.
(4)
Effective Q1'25, Regional office expenses & other was moved to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
Asia's sales(1):
Individual sales of $894 million were up 49%, driven by:
Higher sales in Hong Kong from growth across all channels; and
Higher sales in India and Indonesia primarily from the bancassurance channel; partially offset by
Lower sales in High Net Worth from the broker channel.
Asset management gross flows & wealth sales of $2 billion were up 8%, driven by higher fixed income and equity fund sales in India, partially offset by lower fixed income fund sales in the Philippines.
New business CSM of $300 million in Q4'25 was up from $201 million in the prior year, driven by higher sales in Hong Kong. Despite strong competition, Hong Kong maintained strong margins, although reduced from the prior year.
We remain committed to improving the Client experience through enhanced digital capabilities. In Malaysia, Clients benefitted from a faster onboarding experience, with almost two-thirds of our Clients receiving automated underwriting decisions within two hours. In Indonesia, we introduced automated claims features, delivering a faster and more efficient claims process for our Clients, with digital submissions rising approximately eight percentage points from the prior year. We also launched Digital Check-In within our Client Service Centres, an online booking service which helps to reduce service centre wait times.
In December, we expanded our reach to our High-Net-Worth ("HNW") Clients by opening an office in the Dubai International Financial Centre.
Corporate
Underlying net loss was $110 million compared to underlying net loss of $97 million in the prior year, reflecting higher financing costs supporting the acquisition of our remaining interests in SLC Management affiliates.
Reported net loss was $167 million compared to reported net loss of $346 million in the prior year, driven by changes in tax-exempt investment income(2) reflecting higher losses in the prior year, partially offset by the change in underlying net loss.
In 2025, Sun Life was re-certified as a Great Place to Work® in Canada, the U.S., Vietnam, the Philippines, Indonesia, Malaysia, Singapore, India, and Ireland. SLC Management was also named one of Pensions & Investments(3) 2025 Best Places to Work in Money Management for the sixth year in a row. These recognitions affirm our commitment to creating an environment where employees feel valued, supported, and inspired to reach their full potential, and motivated and equipped to excel in creating lasting value for our Clients.
Foreign exchange translation had no significant impact to the change in underlying net income and led to an increase of $3 million in reported net income.
__________________
(1)
Compared to the prior year.
(2)
Q4'25 results reflect lower than expected tax-exempt investment income of $44 million (Q4'24 - lower than expected tax-exempt investment income of $234 million).
(3)
Pensions & Investments, a global news source of money management.
Table of Contents
A
How We Report Our Results
7
B
Financial Summary
8
C
Profitability
9
D
Growth
12
E
Contractual Service Margin
14
F
Financial Strength
16
G
Performance by Business Segment
18
1. Asset Management
19
2. Canada
21
3. U.S
22
4. Asia
23
5. Corporate
24
H
Non-IFRS Financial Measures
25
I
Forward-looking Statements
31
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 Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2025, Sun Life had total assets under management of $1.60 trillion. For more information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
A. How We Report Our Results
Sun Life Financial 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 segments: Asset Management, Canada, U.S., Asia, and Corporate. Information concerning these segments is included in our annual and interim consolidated financial statements and accompanying notes ("Annual Consolidated Financial Statements" and "Interim Consolidated Financial Statements", respectively, and "Consolidated Financial Statements" collectively) and interim and annual management's discussion and analysis ("MD&A"). We prepare our unaudited Interim Consolidated Financial Statements using International Financial Reporting Standards ("IFRS"), the accounting requirements of the Office of the Superintendent of Financial Institutions ("OSFI"). Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS.
Unless otherwise noted, all amounts are in Canadian dollars. Amounts in this document may be impacted by rounding.
1. Use of 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 section H - Non-IFRS Financial Measures in this document, section M - Non-IFRS Financial Measures in our 2025 Annual MD&A, and the Supplementary Financial Information package on www.sunlife.com under Investors - Financial results and reports.
2. Forward-looking Statements
Certain statements in this document are 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. Additional information concerning forward-looking statements and important risk factors that could cause our assumptions, estimates, expectations and projections to be inaccurate and our actual results or events to differ materially from those expressed in or implied by such forward-looking statements can be found in section I - Forward-looking Statements in this document.
3. Additional Information
Additional information about SLF Inc. can be found in the Consolidated Financial Statements, the Annual and Interim MD&A and SLF Inc.'s Annual Information Form ("AIF") for the year ended December 31, 2025. These documents are filed with securities regulators in Canada and are available at www.sedarplus.ca. SLF Inc.'s Annual Consolidated Financial Statements, Annual MD&A and AIF are filed with the United States Securities and Exchange Commission ("SEC") in SLF Inc.'s annual report on Form 40-F and SLF Inc.'s Interim MD&A and Interim Consolidated Financial Statements are furnished to the SEC on Form 6-Ks and are available at www.sec.gov.
B. Financial Summary
($ millions, unless otherwise noted)
Quarterly results
Year-to-date
Profitability
Q4'25
Q3'25
Q4'24
2025
2024
Net income (loss)
Underlying net income (loss)(1)
1,094
1,047
965
4,201
3,856
Reported net income (loss) - Common shareholders
722
1,106
237
3,472
3,049
Diluted earnings per share ("EPS") ($)
Underlying EPS (diluted)(1)
1.96
1.86
1.68
7.45
6.66
Reported EPS (diluted)
1.29
1.97
0.41
6.15
5.26
Return on equity ("ROE") (%)
Underlying ROE(1)
19.1 %
18.3 %
16.5 %
18.2 %
17.2 %
Reported ROE(1)
12.6 %
19.3 %
4.0 %
15.1 %
13.6 %
Growth
Q4'25
Q3'25
Q4'24
2025
2024
Sales
Asset management gross flows & wealth sales(1)
59,861
62,117
60,999
236,911
196,074
Group - Health & Protection sales(1)
1,803
498
1,270
3,416
2,737
Individual - Protection sales(1)
1,027
987
743
3,751
2,983
Total assets under management ($ billions)(1)(2)
1,604.9
1,623.5
1,542.6
1,604.9
1,542.6
New business Contractual Service Margin ("CSM")(1)
440
446
306
1,727
1,473
Financial Strength
Q4'25
Q3'25
Q4'24
LICAT ratios
Sun Life Financial Inc.
157 %
154 %
152 %
Sun Life Assurance(3)
140 %
138 %
146 %
Financial leverage ratio(1)(4)
23.5 %
21.6 %
20.1 %
Book value per common share ($)
40.25
40.86
40.63
Weighted average common shares outstanding for basic EPS (millions)
556
561
575
Closing common shares outstanding (millions)
554
558
574
(1)
Represents a non-IFRS financial measure. For more details, see section H - Non-IFRS Financial Measures in this document.
(2)
Prior period amounts have been updated.
(3)
Sun Life Assurance Company of Canada ("Sun Life Assurance") is SLF Inc.'s principal operating life insurance subsidiary.
(4)
The calculation for the financial leverage ratio includes the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was $11.3 billion as at December 31, 2025 (September 30, 2025 - $11.2 billion; December 31, 2024 - $10.3 billion).
C. Profitability
The following table reconciles our Common shareholders' net income ("reported net income") and underlying net income. All factors discussed in this document that impact underlying net income are also applicable to reported net income. Certain adjustments and notable items also impact the CSM, such as mortality experience and assumption changes; see section E - Contractual Service Margin in this document for more information.
Quarterly results
($ millions, after-tax)
Q4'25
Q3'25
Q4'24
Underlying net income (loss) by business type(1):
Asset management & wealth
534
500
486
Group - Health & Protection
308
284
266
Individual - Protection(2)
362
361
310
Corporate expenses & other(2)
(110)
(98)
(97)
Underlying net income(1)
1,094
1,047
965
Add:
Market-related impacts
(179)
(14)
(179)
Assumption changes and management actions ("ACMA")
(31)
(13)
11
Other adjustments
(162)
86
(560)
Reported net income - Common shareholders
722
1,106
237
Underlying ROE(1)
19.1 %
18.3 %
16.5 %
Reported ROE(1)
12.6 %
19.3 %
4.0 %
Notable items attributable to reported and underlying net income(1):
Mortality
55
30
10
Morbidity
17
(28)
(22)
Lapse and other policyholder behaviour ("policyholder behaviour")
1
(4)
—
Expenses
(42)
(9)
(10)
Net Credit(3)
14
(13)
(6)
Other(4)
24
29
16
(1)
Represents a non-IFRS financial measure. For more details, see section H - Non-IFRS Financial Measures in this document. For more information about business types in Sun Life's business groups, see section A - How We Report Our Results in the 2025 Annual MD&A.
(2)
Effective Q1'25, Regional Office in Asia was moved from the Corporate expenses & other business type to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
(3)
Credit includes rating changes on assets measured at Fair value through profit or loss ("FVTPL"), and the Expected credit loss ("ECL") impact for assets measured at Fair value through other comprehensive income ("FVOCI"). Effective Q1'25, the release of credit risk adjustments, which are reported in Expected Investment Earnings in the Driver of Earnings analysis, are included in this balance. Prior period amounts reflect current presentation.
(4)
Other notable items are recorded in Net Insurance Service Result and Net Investment Result in the Drivers of Earnings analysis. For more details, see section H - Non-IFRS Financial Measures in this document.
Quarterly Comparison - Q4'25 vs. Q4'24
Underlying net income(1) of $1,094 million increased $129 million or 13%, driven by:
Asset management & wealth(1) up $48 million: Improved credit experience and fee income in Canada wealth, higher fee income, net of expenses, in MFS, and higher fee-related earnings, offset by lower net seed investment income, in SLC Management.
Group - Health & Protection(1) up $42 million: Improved U.S. medical stop-loss morbidity experience and business growth in Canada, partially offset by higher distribution costs in U.S. Group Benefits.
Individual - Protection(1)(2) up $52 million: Business growth, favourable mortality experience and higher investment earnings in Asia, and favourable mortality experience in the U.S., partially offset by lower contributions from joint ventures in Asia.
Corporate expenses & other(1)(2) $(13) million increase in net loss reflecting higher financing costs supporting the acquisition of our remaining interests in SLC Management affiliates.
Reported net income of $722 million increased $485 million or 205%, driven by:
Changes in tax-exempt investment income primarily in Corporate(3) reflecting higher losses in the prior year;
The increase in underlying net income; and
The prior year impacts from an impairment charge of $186 million on an intangible asset related to bancassurance in Vietnam and a provision in U.S. Dental; partially offset by
Unfavourable ACMA impacts.
Market-related impacts were in line with the prior year as favourable equity market impacts and improved real estate experience were offset by unfavourable other market-related and interest rate impacts.
Underlying ROE was 19.1% and reported ROE was 12.6% (Q4'24 - 16.5% and 4.0%, respectively).
1. Market-related impacts
Market-related impacts represent the difference between actual versus expected market movements(4). Market-related impacts resulted in a decrease of $179 million to reported net income, primarily driven by other market-related and interest rate impacts, and real estate experience.
2. Assumption changes and management actions
The net impact of assumption changes and management actions was a decrease of $31 million to reported net income and includes methods and assumptions changes on insurance contracts as well as related impacts. These included various small enhancements. For additional details refer to "Assumption Changes and Management Actions by Type" in section E - Contractual Service Margin in this document.
3. Other adjustments
Other adjustments decreased reported net income by $162 million, driven by:
DentaQuest acquisition, integration and restructuring costs and amortization of acquired intangible assets;
Lower than expected tax-exempt investment income primarily in Corporate(3); and
Changes in SLC Management's acquisition-related liabilities(5).
4. Experience-related items
In the fourth quarter of 2025, notable experience items included:
Favourable mortality experience in Canada, the U.S. and Asia;
Favourable morbidity experience in Canada partially offset by unfavourable morbidity experience in the U.S.;
Unfavourable expense experience primarily in the U.S. reflecting claims volumes in Dental and distribution costs in Group Benefits;
Net credit was favourable primarily from Canada and the U.S.; and
Other experience was favourable primarily from the U.S., Asia, and Canada.
_______________________
(1)
Refer to section H - Non-IFRS Financial Measures in this document for a reconciliation between reported net income and underlying net income.
(2)
Effective Q1'25, Regional office expenses & other was moved to the Individual - Protection business type, reflecting a reporting refinement. Prior period amounts reflect current presentation.
(3)
Q4'25 results reflect lower than expected tax-exempt investment income of $49 million (Q4'24 - lower than expected tax-exempt investment income of $234 million).
(4)
Except for risk free rates which are based on current rates, expected market movements are based on our medium-term outlook which is reviewed annually.
(5)
Amounts primarily relate to acquisition costs for our SLC Management affiliates, BentallGreenOak, Crescent Capital Group LP and Advisors Asset Management, Inc., which include the unwinding of the discount for Other financial liabilities.
5. Income taxes
The ...
