-- Sun Life Financial (SLF.TO) Wednesday after trade reported higher first-quarter underlying earnings and a $0.04 dividend increase. The lifeco also intends to renew its share buyback program.
Underlying net earnings edged up to $1.05 billion, or $1.89 per share, from $1.045 billion or $1.82, in the prior year period. Analysts polled by Factset had expected $1.89 per share. Sun Life said underlying earnings were boosted by strong performance in Asia reflecting business growth in Hong Kong, and Canada from higher fee income driven by higher assets under management (AUM).
Underlying return on equity (ROE) advanced from 17.7% to 18.6%.
Sun Life said assets under management (AUM) rose by $23 billion year over year, to $1,578 billion.
The company will pay the higher dividend of $0.96 per share, on June 30, to shareholders of record on May 27.
Sun Life separately said it intends to renew its share buyback program, and buy back up to 10-million shares from May 29, for one year. The normal course issuer bid is also subject to OSFI approval.
"This quarter we delivered strong growth in our protection businesses led by Asia, Canada and U.S. Health and Risk Solutions," said Kevin Strain, Sun Life chief executive. "We also added further scale to our asset management platform, deploying over $2.4 billion in capital for the buy-ups of BGO and Crescent Capital and announcing our intention to acquire Bell Partners, a leading U.S. multifamily real estate investment manager and vertically integrated property management business."
Sun Life Financial was last seen down US$0.09 to US$73.01, in after-hours New York trading. It closed down $0.12 to $99.53, on the Toronto Stock Exchange.