Stats & news CBS | Globe | TrontoStar today | TSX charts

Charts

Sun+Life

Wednesday 31 October 2007

The Number Cruncher blog is now online

2008

Wednesday 07 May 2008 (SLF : TSX : $47.44), Net Change: -1.76, % Change: -3.58%, Volume: 7,082,112
There's no life like the Sun Life. The insurer announced first quarter results, which saw fully diluted operating EPS of $0.93, a 3% decrease over last year. Operating return on equity (ROE) was 13.4% for the quarter. Reported EPS for the first quarter of 2008 was $0.93, an increase of 8% over reported EPS of $0.86 in the first quarter of 2007, which included $61 million of nonrecurring brand and debt redemption costs. Global credit pressures and a strong Canadian dollar took a bigger bite out of operating earnings than analysts had expected. The company warned that 2008 would be a challenging year. While Canadian operations saw earnings decline 1%, as the decrease in interest rates and equity markets in the quarter offset investment gains and favourable mortality experience, earnings in the U.S. rose 15% on business growth and better claims experience, although earnings from annuities fell slightly. MFS, the company's U.S. wealth-management arm, continued to be a trouble spot, with its earnings down 18% amid redemptions, market depreciation and the rise in the Canadian dollar. MFS has now reported net redemptions for four consecutive quarters. And Asian reported a 66% drop in earnings in the period, mainly on lower earnings in Hong Kong and a ramp up in investment in India. Birla Sun Life, the company's joint venture in India, plans to expand to 600 branches this year from 339 now. As well, the company announced that Rick McKenney, Executive Vice-President and CFO, has been named a recipient of Canada's Top 40 Under 40 for 2007.

Friday Feb 15, 2008 Sun Life profit climbs
Executives at Sun Life Financial Inc. said yesterday the insurer delivered a solid fourth quarter, with a two-per-cent rise...
Executives at Sun Life Financial Inc. said yesterday the insurer delivered a solid fourth quarter, with a two-per-cent rise in net income, but they remained cautious about ongoing pressures from the Canadian dollar and world financial markets.
Canada's third-largest life insurer reported a slight rise in fourth-quarter profit, which fell short of market expectations.
It also boosted its dividend to 36 cents a share from 34 cents.
Net income was $555 million, or 97 cents a share, in the last quarter of 2007, helped by the insurer's U.S. operations but hurt by a stronger Canadian dollar. That compared with net income of $545 million, or 94 cents a share, in the year-earlier period.
Analysts expected earnings of $1.01 a share

Wednesday 30 January 2008 (SLF : TSX : $49.85)
Raising $400 million through issuance of debentures
Dundee Securities rates a "market outperform", 12-month target price is $57.00

2007

Thursday 01 November 2007
Sun Life Financial Inc. (SLF : TSX : $54.89 | NYSE : US$58.20)
Posts solid third-quarter results
Desjardins Securities maintains a "buy", target price raised to $59.50
GMP Securities maintains a "buy", target price raised to $60.00
RBC Capital Markets maintains a "sector perform", target price raised to $59.00

Wednesday 31 October 2007 (SLF-T, SLF-N) C$55.20 Doug Young, CFA,
BUY (Unchanged);Target: C$61.00 (Unchanged)
Q3/07 Results - Themes Playing Out as Expected

Thursday 03 May 2007 Sun Life (SLF) - $51.00 - Earnings Quality Continues to Be Weak
Sector Perform, Average Risk, price target $57.00
Q1/07 - results were in line with expectations but earnings quality looks weak. Core EPS of $0.96 vs. $0.84 in Q1/06 and $0.95 in Q4/06 was in line with RBC CM estimates but below consensus of $0.98. Street analysts looked on these results as weak in spite of a very strong 19% increase in expected profit from in-force business (premium amounts from book of business). Management actions and changes in assumptions represented 23% of pre-tax income on a core basis, offsetting increased new business strain (initial upfront costs from new written business). New business strain rose from already high levels, particularly in the U.S. It is up 41% sequentially and 153% year over year. Sun Life's international platforms are less well established than its peers’ while earnings quality and medium-term embedded value growth has been weaker. However Sun Life has exposure to a large asset management business and has a large well developed domestic group life platform. Trailing 12-months value of new business was up 13% in constant currency, a disappointing figure in RBC CM's view. Sun Life trades at 11.7x RBC CM 2008 estimated EPS of $4.35. Price target represents a 13.1x P/E multiple.

01 May 2007 Sun Life Financial profit rises
Sees earnings growth at MFS, Sun Life Financial Canada's Group Benefits and Group Wealth divisions, as well as Hong Kong and U.K. operations

Sunday 11 February 2007 SUN LIFE FINANCIAL(SLF)$51.92 – ANOTHER STRONG QUARTER. RATING: SECTOR PERFORM. TARGET: $57.00 (WAS $54.00). RISK RATING: LOW. INDUSTRY RATING: OVERWEIGHT.
SLF reported Q4 Core EPS of $0.94 above our estimate and consensus estimates of $0.93. Core ROE was 14%, up 70 bps y/y. Most segments reported higher earnings, with MFS up 58%, SLF Asia up 230% and SLF Canada up a modest 1%. Corporate was also up (by 172%), owing to a large increase in Reinsurance net income and despite a meaningful decline in SLF U.K. Overall, the company had a strong quarter, with high earigns quality. Year over year growth in core EPS was an excellent 13%. Furthermore, SLF has begun to see strong sales trends over the past few quarters. That said at 13x and 12xz our revised 2007 EPS and 2008 EPS forecasts of $3.96(was $3.91) and $4.33 (was $4.29), SLF’s multiples are roughly equal to the banks. Therefore, while there is no doubt the company is performing better, we believe investors will be reluctant to value it ahead of the banks, especially given that sector’s very solid operating fundamentals. Hence, we continue to rate SLF a Sector Perform, but have raised our 12 month target to $57.00 from $54.00. A detailed note will be out later this morning on our website.

Friday 12 January 2007 SUN LIFE FINANCIAL(SLF)$48.55 – ACQUIRING GNW’S U.S GROUP BENEFITS BUSINESS. RATING: SECTOR PERFORM. TARGET: $54.00. RISK RATING: LOW. INDUSTRY RATING: OVERWEIGHT.
On Thursday, Sun Life Financial announced the acquisition of the U.S. group benefits business of Genworth Financial (GNW) for US$650 million (or roughly $765 million). The transaction, which is to be funded with existing capital and is expected to close in Q2 2007, equates to 1.1x price-to-U.S. GAAP book value. This bolt-on acquisition in SLF U.S.’s smallest sub-segment achieves a stated objective for the company, as the lifeco’s market share moves into the top 10 in each of its U.S. group benefits businesses. Moreover, SLF becomes #5 in North American group life and disability. The deal is forecast by SLF to be accretive to EPS by $0.05 per share in 2008 (or 1% of our forecast earnings), and will add 10 basis points to ROE. The company’s excess common equity declines by approximately $800 million. Although not large, this transaction is, in our opinion, a modest positive for SLF, both strategically (i.e. building scale in a core business) and financially (i.e. accretive to both EPS and ROE). Moreover, we believe the transaction provides further support to our view that the lifecos are in a favourable position to create value from capital deployment.Our EPS estimates remain unchanged at this time. We continue to rate SLF a Sector Perform with a $54.00 12-month target.

Thursday Jan 5, 2006 rci Sun Life Financial Inc. is issuing CDN$250 million to CDN$300 million worth of preferred shares, with the proceeds to be used for general business purposes. The perpetual preferred shares will be priced at CDN$25 per share. They will pay non-cumulative quarterly dividends of 27.8 cents per share, yielding 4.45 per cent annually. Sun Life Financial will be entitled to redeem some or all of the shares on March 31, 2011. Thereafter, shares will be redeemed at a declining premium. The offering is expected to close on January 13.

2005

Thursday Jul 7, 2005 rci Sun Life Financial Inc. has announced a major expansion in Hong Kong. The Canadian insurance firm says it has paid $560 million to acquire two assets owned by the Commonwealth Bank of Australia that sell group pensions and other group plans. The expansion makes Sun Life Hong Kong's seventh-biggest insurer. It had been the 19th biggest. The transaction will also enable the Canadian firm to join in the expansion of Hong Kong insurance firms to the mainland, particularly in neighbouring Guangdong.

-