This is a press release from Sun Life Financial.
The information contained in this document concerning the first quarter of 2012 is based on our unaudited interim financial results for the period ended March 31, 2012. All amounts are in Canadian dollars unless otherwise noted.
This news release has been updated to correct diluted operating earnings per share. Diluted operating earnings per share in the first quarter of 2012 was $1.24, previously reported as $1.22.
First Quarter 2012 Financial Highlights
- Operating net income of $727 million, compared to $472 million in the first quarter of 2011. Reported net income of $686 million, compared to $438 million in the same period a year ago
- Operating earnings per share(1) ("EPS”) of $1.24, compared to operating EPS of $0.82 in the first quarter of 2011. Reported EPS of $1.15, compared to $0.73 in the same period last year
- Operating return on equity(1) ("ROE”) of 21.6%, compared to 13.5% in the same period one year ago. Reported ROE was 20.4%, compared to 12.5% in the first quarter of 2011
- Quarterly dividend of $0.36 per share
TORONTO (May 10, 2012) – Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) recorded operating net income of $727 million for the first quarter of 2012, compared with operating net income of $472 million in the first quarter of 2011. Our operating EPS was $1.24 in the first quarter of 2012, compared to operating EPS of $0.82 in the first quarter of 2011. Reported net income was $686 million or $1.15 per share in the first quarter of 2012, compared to net income of $438 million or $0.73 per share in the same period last year.
Net income in the first quarter benefited from improvements in capital markets and continued growth in our in-force business. Strong equity market performance and increased interest rates, particularly in the United States, contributed $348 million to net income during the first three months of 2012. Premiums and deposits were a record $25.3 billion, helping to drive assets under management to $494.2 billion as at March 31, 2012.
"Our results for the first quarter of 2012 reflect both solid underlying business performance and the impact of favourable equity markets and higher interest rates as we continue to execute on our refocused strategy,” said Dean A. Connor, President and Chief Executive Officer. "As outlined in our March 8 presentation to investors, we continue to work towards reducing the risks in our business, expanding in Canada, investing in U.S. growth, building our asset management businesses worldwide and expanding distribution and sales of insurance and wealth products in Asia.”
The Board of Directors of Sun Life Financial Inc. today declared a quarterly shareholder dividend of $0.36 per common share, maintaining the current quarterly dividend.
While market performance was favourable in the first quarter, our financial results this quarter continue to highlight the impact of interest rate and equity market volatility on our net income. In order to assist shareholders in better understanding our underlying net income, we have introduced an additional operating net income measure to remove certain market-related factors that create volatility in our results from quarter-to-quarter under International Financial Reporting Standards. Operating net income excluding the net impact of market factors adjusts for the net income impact of changes in interest rates, equity markets, fair value of real estate properties and actuarial assumptions driven by capital market movements.