SUN Life Financial on Thursday reported a rise in first-quarter profit, as the life insurer was helped by strength in its Asia market and strong performance in its wealth and asset management business.
Canadian insurers, including Sun Life and Manulife Financial, are expanding in Asia to tap into a growing, under-insured middle class, helping them offset some of the weakness that they have been facing in the US market.
Manulife’s 3-percent rise in first-quarter profit was also partly driven by growth in its Asia business.
Sun Life’s underlying income from its Asia markets rose 11 percent to CA$197 million ($142 million) in the first quarter from the year-ago period.
“In an increasingly complex business environment, we continue to advance on our Client Impact Strategy and strategic imperatives, underscored by new digital tools and capabilities, robust capital raising at SLC Management, and strong sales and distribution in Asia,” CEO Kevin Strain said in a statement.
Its domestic business also reported a 21-percent rise in underlying net income, while asset management reported a 19-percent jump to CA$487 million ($350 million).
The company’s net income was CA$928 million ($666.9 million), or CA$1.62 per share, for the three months ended March 31. That compares with a profit of CA$818 million ($588 million), or CA$1.40 ($1) per share, a year earlier.