Sun Life Shares up After Earnings Beat, U.K.
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Financial Sun Life shares jumped on Thursday after reporting a second quarter profit that was better than estimates and announced its UK business sales and asset management partnerships with buyers, Phoenix Group Holdings.
Previously on Thursday, Canada’s second largest living insurance company agreed to sell a closed business in the UK to Phoenix at a price of 248 million pounds ($ 301 million), and became a strategic asset management partner, managing around C $ 9 billion ($ 7 billion) from Matahari General Account Life Uk.
Sun Life hopes to get a “good deduction” from the Phoenix plan worth $ 25 billion to be used in North American’s fixed income and alternative investments for the next five years, CEO Kevin Strain said on an analyst on Thursday. He added that it would redeem some lost income and support income.
Strain says Sun Life has no current plans to sell other closed blocks, including the payment annuity of the British business, which is maintained, and the business of individual life (IFM) in the United States.
We like the closed block dynamics,” Strain told Reuters, adding this business to generate strong cash income and flow and good return for at least 10 years.
Sun Life shares rose 2.8% to C $ 60.80 in the afternoon trading in Toronto on Thursday, on the path for the highest closure in almost eight weeks. Toronto stock benchmark rose 0.14%.
On Wednesday night, Sun Life reported core income per share C $ 1.52, defeating the estimated analyst from C $ 1.39, assisted by an increase in the U.S. Business. unit.
The executive of Sun Life said the provider of the benefits of US Dentaquest, the acquisition was closed on June 1, would help encourage its 10% purpose of organic growth in the business of the U.S. Group Benefits.
Dentaquest has become a growth machine during its history,” and Fishbein, President of the U.S. Unit, said the call analyst. “We think there is a lot of potential in the Dentaquest business in various fields to continue to win new government contracts.”
He warned that this business was “very thick” with a small but very large contract that could cause sporadic growth in income.
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