Sun Life Financial has reported strong fourth-quarter and full-year results for the period ended December 31, 2025, outpacing its closest rival Manulife on key profitability metrics as the Toronto-based insurer capitalises on disciplined execution and favourable market conditions.
The company posted underlying net income of CA$1,094 million for Q4, up from CA$965 million in the same period of 2024, marking a 13% year-over-year increase. For the full year, underlying net income reached CA$4,201 million, compared with CA$3,856 million in 2024, representing 9% growth.
Underlying earnings per share came in at CA$1.96 for the quarter, a 17% year-over-year increase, whilst full-year underlying EPS was CA$7.45, up 12% from CA$6.66 in 2024.
The company's underlying return on equity stood at 19.1% for Q4 and 18.2% for the full year, data from the insurer's financial statements show. This marks a significant outperformance against Manulife, Sun Life's closest competitor in terms of size and business lines amongst Canada's major insurers.
Manulife reported a core ROE of 17.1% in Q4 2025 and 16.5% for the full year, industry filings indicate, meaning Sun Life delivered 200 basis points of outperformance in the fourth quarter and 170 basis points for the full year.
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The Q4 2025 ROE also represented a 260 basis point improvement from Sun Life's own Q4 2024 performance of 16.5%, demonstrating strengthening capital efficiency.
Reported net income attributable to common shareholders was CA$722 million for the quarter, a 205% increase from the CA$237 million recorded in Q4 2024. On a full-year basis, reported net income totalled CA$3,472 million, up CA$423 million or 14%.
Segment performance showed growth across all three operating categories during Q4. Asset management and wealth underlying net income was CA$534 million, up 10%.
Group health and protection rose 16% to CA$308 million, driven by improved US medical stop-loss morbidity experience and business growth in Canada. Individual protection was CA$362 million, up 17%, reflecting business growth and favourable mortality experience in Asia.
Group health and protection sales were CA$1,803 million in Q4, up 42%, whilst individual protection sales reached CA$1,027 million, a 38% increase. Assets under management stood at CA$1,605 billion as of 31 December 2025, up 4% from a year earlier.
Sun Life's LICAT ratio was 157%, up from 152% a year prior.
Kevin Strain (pictured above), president and chief executive, said: "Sun Life delivered strong fourth quarter performance driven by disciplined execution with underlying net income reaching CA$1.1 billion, contributing to 17% underlying earnings per share growth over Q4 last year and underlying return on equity of 19.1%."
