Sun Life Reports Q1 Earnings Growth, Raises Dividends

Sun Life Financial reported strong first-quarter 2025 results with earnings per share of $1.27, surpassing estimates by 4.10%, and revenues of $7.91 billion, beating consensus by 22.86%. The company saw a 19% increase in underlying net income to $1.045 billion and a 6% growth in assets under management to $1.55 trillion, driven by expanded operations in Asia and enhanced digital tools. Sun Life declared a quarterly dividend increase to $0.88 per share, reflecting its commitment to consistent shareholder returns and reinforcing confidence despite some concerns over declining cash flows and rising debt-to-equity ratio. CEO Kevin Strain highlighted the company’s solid capital position, with a LICAT ratio of 149%, supporting financial flexibility and ongoing share buybacks. Market analysts hold an overall “Outperform” rating on Sun Life, with an average price target close to current levels but a GuruFocus estimate suggesting a potential upside of over 45%. The company’s strategic advances and robust financial performance position it well, even as investors weigh near-term challenges against long-term growth prospects.