TORONTO – Strong stock markets and rising interest rates in the U.S. helped Sun Life Financial (TSX:SLF) post a big increase in first-quarter earnings compared with a year ago.
The profit broke a streak of two consecutive quarters of losses at the Toronto-based insurance company.
Sun Life said Thursday that it earned $686 million or $1.15 per share in its latest quarter, up from $438 million or 73 cents in the same period last year.
Excluding the gains from the equity markets, higher interest rates and real estate valuations, Sun Life said it earned $357 million for the quarter.
Revenue dropped to $3.1 billion from $4.2 billion, weighed down by a change in fair value for certain assets.
“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,” president and chief executive Dean Connor said in a statement.
Sun Life’s Canadian business reported a profit of $227 million, down from $236 million a year ago, while the insurer’s U.S. operations earned $434 million, up from $180 million in the first three months of 2011.
MFS Investment Management earned $69 million, up from $67 million, while Sun Life’s business in Asia earned $29 million, down from $44 million.
Sun Life employs about 16,000 people, including 7,000 in Canada, and has insurance, wealth management and mutual fund operations around the world.
Shares in the company were up 24 cents at $22.37 in trading on the Toronto Stock Exchange on Thursday.
