Sun Life Asia Profit Jumps 153 Percent
Sun Life's Asia unit was the group's fastest-growing engine in the second quarter, with reported net income up 153 percent. Yet intensifying competition in Hong Kong is already eating into the value of new business.
The Canadian life insurer Sun Life lifted Asia's reported net income to 202 million Canadian dollars in the three months to June, up 122 million or 153 percent on the prior year. On an underlying basis, Asia earned 222 million dollars, an increase of 18 percent. At group level, underlying net income rose 11 percent to 1.12 billion dollars, reported net income climbed 41 percent to 1.01 billion, and the underlying return on equity reached 19.1 percent.
The regional gains were driven mainly by Hong Kong, where strong sales momentum and in-force business growth combined with lower expenses and favourable credit experience. Working the other way was lower fee income, as the administration business transitions to the centralised eMPF platform in the city.
Hong Kong drives the top line
Individual insurance sales jumped 19 percent to 862 million dollars, led by Hong Kong across all channels and by robust bancassurance growth in India, Malaysia and Indonesia. Asset management gross flows and wealth sales rose 22 percent to 1 billion dollars, reflecting higher MPF sales in Hong Kong, group fund sales in India and fixed-income fund sales in the Philippines.
The competitive backdrop is tightening, however. New business contractual service margin (CSM) – a measure of the future profit locked into fresh policies – slipped to 277 million dollars from 299 million a year earlier, which Sun Life attributed to an increasingly competitive environment, primarily in Hong Kong.
Awards and new products
Sun Life was named the inaugural Diamond Choice winner at the 2026 MPF Awards by MPF Ratings, recognised as the best-value scheme across the retirement system's 25-year history. The insurer also broadened its line-up, launching a legacy-planning solution in the Philippines and the Sun USD Alpha Grow Fund in Indonesia, while rolling out AI-powered tools for its contact centre and advisors.
Kevin Strain, president and chief executive of Sun Life, framed the quarter in group terms: «Sun Life delivered a strong second quarter, reflecting the resilience of our diversified business and the discipline of our execution.» Assets under management across the group stood at 1,696 billion dollars, up 10 percent year-on-year.
