$SLF.TO

Canadian Life Companies Split Corp. At The Market Equity Program Renewed

Sun Life Financial Brief: Receive Exchange and ODFI Approval to Repurchase and Cancel Up to 10-Million Shares over 12 Months Through a Normal-Course Issuer Bid

CIBC Reviews Canadian Lifecos' Q1, Says Results "a Little Disappointing", Updates Price Targets on Group

The Canadian lifecos' first-quarter results were "a little disappointing", writes CIBC analyst Paul Holden, with Great-West Lifeco (GWO.TO) the only name to beat consensus EPS. Holden also updated his price targets on the shares of the group.Three lifecos experienced significant negative reactions on the day of their results (Manulife, Sun Life and iA Financial). 2027 consensus EPS for the three stocks did not change that much (-0.3% on average), but multiples declined to reflect lower earnings visibility."While there were clear weaknesses in the results for each of these three names, the overall outcome was not as bad as it initially appeared. EPS was up 8% Y/Y on average and ROE was up 90bps. Buying on weakness is a good call," Holden adds.He still recommends lifecos over banks, pointing out the expected insurance earnings increased by 9% Y/Y on average. Earnings are expected to benefit from the move in equity markets post quarter-end, while lifecos also tend to benefit from higher inflation and interest rates. P/E multiples also remain at a 15% discount to the banks.Great-West and Manulife Financial (MFC.TO)are Holden's two outperformer names. Great-West does not have any meaningful challenges that need to be addressed and there is room for EPS upside, including from a potential acquisition. He has raised his price target on the shares by $6.00 to $81.00.Asia is producing exceptional growth for Manulife, and GWAM earnings are also expected to see a big rebound in the second quarter along with U.S. insurance experience, which is off to a good start in 2026. ROE is on track for 18% in 2027, implying ~5% upside to consensus EPS, Holden calculates. Manulife is also trading at the biggest discount in the group (9%). "We believe this is the stock to buy between quarters." Manulife price target has also been raised to $61.00 from $58.00.CIBC is maintaining a neutral rating on both Sun Life (SLF.TO) and iA Financial (IAG.TO). The price target on the shares of Sun Life has been raised by $7.00 to $102.00, while iA Financial share price target has been lowered to $180.00 from $184.00.Price: $78.76, Change: $+0.61, Percent Change: +0.78%

Sun Life Financial and Great-West Lifeco Price Targets Raised at TD

TD Securities raised its price targets on Sun Life Financial Inc. (SLF.TO) to $107 from $102, and on Great-West Lifeco Inc. (GWO.TO) to $80 from $73, respectively, on Thursday.Analyst Mario Mendonca maintained a Buy rating on both Canadian financial service and insurance companies following their quarterly results."SLF beat our estimate on stronger US and Asian results," Mendonca said in a note to clients. "Pricing actions and reserving point to better US results in 2026.""While MFS margins remain healthy, outflows remain elevated," the analyst said. "Asia sales and earnings remain healthy.""We characterize GWO's Q1/26 results as the strongest among the large insurers so far," Mendonca said."Solid growth in the US Retirement & Wealth earnings (margins) and better flows in Retirement (slightly softer net flows in Wealth), accelerating growth in Capital Solutions and a nearly 20% ROE in the quarter support this characterization."

Sun Life Financial Reports Higher Q1 Underlying Earnings, Lifts Dividend and Renews Share Buyback Program

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.

TSX Closer: Index Down In All But 1 of the Last 8 Sessions; Morningstar Cites 10 Top-Performing Dividend Stocks

The Toronto Stock Exchange has closed lower in all but one of the last eight sessions, with the latest losses on this Tuesday coming as U.S. Defense Secretary Pete Hegseth said the US-Iran ceasefire "is not over" despite attacks in the Strait of Hormuz yesterday.The S&P/TSX Composite Index closed down 71.96 points, or 0.2%, at 33.566.91, even as most sectors were higher, led by Health Care, up 2.5%, followed By Base Metals, up 2%, and Energy, up 1.4%. Information Technology was down near 4.2% and the Battery Metals Index was down 2.6%.Among individual stocks, BNN Bloomberg TV cited Ero Copper, up more than 5% today and up just short of 100% over one year. The company reported first-quarter results earlier Tuesday. BNN also cited Parex Resources (PXT.TO), up near 5% as Frontera (FEC.TO) obtained a final order approving their plan of arrangement.On the negative side, BNN cited Shopify (SHOP.TO), down more than 15% after its Q1 results, and Keyera (KEY.TO), which lost more than 7% as the Competition Bureau moved to block its $5.15-billion acquisition of Plains All American Pipelines Canadian natural-gas liquids business.Still on individual stocks, Morningstar Canada said the top performing dividend payers in April included engineering and construction company Aecon (ARE.TO), Canadian Imperial Bank of Commerce (CM.TO), and asset management firm IGM Financial (IGM.TO). Morningstar noted dividend-paying stocks that "combine healthy balance sheets with hefty yields" can provide investors with "steady incomes, cushion against market downturns, and grow investments at a healthy clip".A screening of the Morningstar Canada Index, which measures the performance of Canada's broad regional markets, targeting the top 97% of stocks by market capitalization, for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts, showed the best performing Canadian dividend stocks last month. This included the aforementioned Aecon, CIBC and IGM. The list also included National Bank of Canada (NA.TO), TD Bank Group (TD.TO), Industrial Alliance Insurance and Financial Services (IAG.TO), Power Corporation of Canada (POW.TO), TMX Group (X.TO), Sun Life Financial (SLF.TO) and Superior Plus (SPB.TO).Of commodities, gold traded higher by midafternoon, rising off a five-week low as treasury yields weakened. Gold for June delivery was up US$35.60 to US$4,568.90 per ounce.But West Texas Intermediate crude oil fell 3.9% with the ceasefire between the United States and Iran seen holding, calming Monday's gains as violence in the Persian Gulf eased. WTI crude oil for June delivery closed down US$4.15 to settle at US$102.27 per barrel, after rising 4.4% on Monday, while July Brent oil was down US$4.24 to US$110.20.

Sun Life Financial Reaches Settlement in Principle to Resolve MetLife Class Action; AM Best Affirms Credit Ratings

Sun Life Financial (SLF.TO) Thursday after trade said it has reached a settlement in principle to resolve a class action relating to individual life insurance policies sold and issued by MetLife in the 1980s and 1990s, which Sun Life inherited through acquisitions.This matter does not involve any policies or products sold by Sun Life, the company said.If approved, Sun Life would provide up to $213.5 million settlement value to eligible policyholders, which is expected to result in a charge to first quarter 2026 reported net income of approximately $145 million.The proceedings relate to the interpretation of policy language in the policies, which are subject to an indemnity from MetLife. Sun Life will seek full recourse from MetLife pursuant to the indemnity, if the settlement is approved, it confirmed.Separately, AM Best affirmed the financial strength rating (FSR) of A+ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of "aa" (Superior) of Sun Life Assurance Company of Canada and Sun Life and Health Insurance Company (U.S.), core insurance subsidiaries of Sun Life Financial. AM Best also affirmed the Long-Term ICR of "a" (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of SLF. The outlook of these ratings is stable.The ratings reflect Sun Life Group's balance sheet strength, which AM Best assesses as strongest, strong operating performance, favorable business profile and very strong enterprise risk management.Sun Life Financial shares are unchanged at US$72.08 in U.S. after-hours trade. It closed up $1.30, to $97.87 on the Toronto Stock Exchange.

Sun Life Says Reaches Settlement In Principle To Resolve Class Action Relating to Individual Life Insurance Policies Sold and Issued By MetLife in 1980s and 1990s

AM Best Affirms Credit Ratings of Sun Life Financial Inc. and Its Subsidiaries

Sun Life Financial Upgraded To Outperform From Sector Perform at National Bank As Improved U.S. Performance Seen, notes BNN TV

Great West Lifeco Remains Top Pick in CIBC Q1 LIfecos Preview

CIBC Capital Markets expects Canadian life insurers to post double-digit year over year earnings per share growth on average.Great West Lifeco (GWO.TO) remains top pick. Analyst Paul Holden expects the company to post the highest Y/Y EPS growth in the first quarter (19%). There is potential upside from a number of growth levers at Empower and a strong demand backdrop for capital solutions, he adds. An Empower bolt-on acquisition is a potential catalyst with estimated EPS accretion of ~6%. The stock is trading at a 6% premium to the group average on P/E, consistent with the historical premium.Manulife (MFC.TO) is another outperformer. Holden is looking for a better quarter from the company, noting that Manulife printed strong headline results last quarter but disappointed the Street on some KPIs. "We look for an improvement in U.S. insurance experience, Asia APE sales and GWAM net flows as potential upside drivers."Holden also wants to see double-digit EPS growth and continued progress towards the 2027 18% ROE objective. Manulife is trading at a 5% discount to the group average P/E and recent history suggests an in-line multiple is possible, he adds.CIBC lifted its Q1 EPS estimates for Great West Lifeco by 2%, Manulife and Sun Life by 1% each due to FX and company-specific factors, and decreased the estimate for iA Financial (IAG.TO) by 5% due to seasonality for U.S. dealer services and auto finance."As a group the stocks have not traded all that great YTD (+2.8% on average), and the discount to the banks on P/E now stands at 15% (five-year average is 11%)," Holden writes. He favors lifecos over banks given the valuation discount and strong fundamentals.Price: $70.45, Change: $+1.18, Percent Change: +1.70%