Sun Life Financial reports Q4 net income of $508 million, up from $296 million
Sun Life Financial Inc. reported net income of $508 million for the fourth quarter of 2010, compared with net income of $296 million in the same period last year. Diluted earnings per share (“EPS”) were $0.88 in the fourth quarter of 2010 compared to $0.52 in the fourth quarter of 2009.
Strong financial markets resulted in higher earnings in the fourth quarter. Improvements in equity markets and increased interest rates were the main drivers of higher earnings this quarter. This was partially offset by the impact of changes to actuarial estimates and assumptions related primarily to mortality, and higher levels of expenses, which included several non-recurring items. Credit experience continued to show improvement over the prior year.
Earnings for the full year in 2010 were $1,583 million, compared with net income of $534 million in 2009. Full year 2010 earnings reflected improvements in equity markets, the favourable impact of the purchase of the United Kingdom operations of Lincoln National Corporation (“Lincoln U.K. acquisition”) and the favourable impact of asset liability re-balancing. This was partially offset by increased expense levels from business initiatives in 2010.
The Board of Directors of Sun Life Financial today declared a quarterly shareholder dividend of $0.36 per common share, maintaining its current quarterly dividend.
“Our results in the fourth quarter and for the full year of 2010 reflect strong performance,” Donald A. Stewart, Chief Executive Officer, said in a statement. “Throughout 2010 we remained focused on investing in our businesses, deploying capital effectively and enhancing our strong risk management practices. Our dedicated focus in 2010 is reflected in the continued momentum, strong execution and solid results of our businesses.”
