By Divya Rajagopal
TORONTO (Reuters) -Sun Life Financial Inc, Canada’s second-biggest life insurer, on Wednesday posted third-quarter profit that beat analyst estimates, as higher insurance sales in the United States and Asia helped offset declining revenue from its wealth management business.
Underlying profit rose 5% from a year ago to C$949 million ($692.1 million) or C$1.62 per share in the three months ending Sept 30 versus consensus estimates to C$1.47.
“Overall insurance sales across our businesses were strong, reflecting the increased importance clients are placing on protection and health,” Kevin Strain, Sun Life CEO and president, said in a statement.
Market volatility sparked by sharp rise in interest rates globally dented Sun Life’s wealth business, resulting in a 19% drop in core profit from that operation. Total assets under management fell 8% to C$1.28 trillion from a year ago.
Reported profit, which captures market fluctuations, slumped 54% to C$466 million.
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Sun Life has been expanding overseas to diversify its business mix and the latest quarter earnings benefited from recent deals, Strain added.
Core income from U.S. operations nearly doubled to C$216 million and Strain said the performance was boosted by the acquisition of DentaQuest, which Sun Life bought last year for $2.48 billion.
($1 = 1.3710 Canadian dollars)
(Reporting by Divya Rajagopal; Editing by David Gregorio)