Sun Life Financial (SLF) Delivers Strong 2025 Growth Fueled by Surge in Protection and Health Sales

Sun Life Financial Inc. (NYSE:SLF) is one of the best Canadian value stocks to buy. On February 12, Sun Life Financial reported a strong finish to 2025, with Q4 underlying net income rising 13% to $1.1 billion. This drove underlying EPS up 17% to $1.96, supported by a robust underlying return on equity of 19.1%. Growth was visible across all major business lines, particularly in individual protection sales, which surged 38%, and group health sales, which grew by 42%.

The company’s US stop-loss business recorded 58% sales growth. Management implemented an average price increase of 17% on renewal business to hit target margins, navigating a hard market where some competitors have exited. Additionally, the asset management and wealth segment earned $534 million, up 10%, as the company continues to consolidate its private asset affiliates under SLC Management.

Despite the growth in underlying earnings, net income was 34% lower at $722 million due to market volatility, including changes in risk-free rates and credit spreads. The company also noted net outflows in its MFS asset management business and a $110 million loss in the corporate segment caused by higher financing costs. Sun Life Financial Inc. (NYSE:SLF) now plans to focus on organic growth and the final steps of acquiring its private asset affiliates, with the potential to resume share buybacks later in 2026.

Sun Life Financial Inc. (NYSE:SLF) is a financial services company that provides asset management, wealth, insurance, and health solutions to individual and institutional customers internationally.

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