Sun Life Financial Exceeds Expectations in Q2 2026 with Double-Digit Underlying EPS Growth
In a strong showing, Sun Life Financial delivered double-digit underlying earnings per share (EPS) growth in its second quarter of 2026. The company's performance was driven by higher earnings across its businesses and continued progress against its strategic priorities.
According to CEO Kevin Strain, the company's results reflected strength in Canada, Asia, and the U.S., with asset management continuing to build momentum. Underlying net income came in at CAD 1.12 billion, a 10% increase over the same period last year, while underlying EPS was up 13% to CAD 2.02.
The company's insurance business groups also performed well, with strong protection earnings driven by growth in all segments. Canada delivered record results, reflecting strong business growth and favorable experience, while Asia saw earnings increase due to continued business growth.
In the U.S., health and risk solutions continued to perform well, with in-force management delivering strong earnings driven by favorable investments and insurance results. Sun Life Asset Management also reported improved performance, supported by improved fundraising and deployment momentum.
The company's top-line performance was equally impressive, with insurance sales increasing 20% driven by growth in Asia and continued strength in the U.S. Asset management net flows and net wealth sales improved by CAD 16.3 billion, supported by strong private credit fundraising and a large mandate win in its Aditya Birla Sun Life Asset Management business.
At MFS, outflows remained elevated, reflecting continued industry-wide pressure on active U.S. equity managers. However, the company's capital position remains strong, with a Life Insurance Capital Adequacy Test (LICAT) ratio of 145% and holding company cash of CAD 2.3 billion.
Looking ahead, the company is committed to investing in its business while returning capital to shareholders. As CEO Kevin Strain noted, "This was a strong quarter that reflected the strength of our purpose, our disciplined execution, our business growth across key markets, and the resilience of our diversified model."
