Sun Life Financial and Manulife Financial have reported impressive fourth-quarter financial results for 2025, significantly exceeding analysts’ expectations. The Canadian insurance giants showcased their resilience amidst ongoing geopolitical concerns and market fluctuations.
Sun Life’s Fourth-Quarter Performance
Sun Life posted an underlying net income of $1.09 billion, equating to $1.96 per share for the quarter ending December 31, 2025. This marks an increase from $965 million or $1.68 per share in the same quarter of 2024.
Manulife’s Results
Manulife also revealed strong performance, reporting core earnings of $2 billion or $1.12 per share. This is a rise from $1.91 billion or $1.03 per share a year earlier. Additionally, Manulife announced a 10% dividend increase, raising it to 49 cents per common share.
Analyst Expectations
- Analysts had predicted earnings of $1.87 per share for Sun Life.
- Manulife’s forecast was set at $1.06 per share.
Market Response and Insights
Sun Life’s shares saw a notable increase of 6.3%, reaching $93.64, with an overall growth of 10.5% year-over-year. Conversely, Manulife’s shares fell by 5.2% to $48.70, though they are still up 15.2% from the previous year.
The decline in Manulife’s share price was attributed to a decrease in net income from its U.S. sector, dropping to $229 million from $294 million year-over-year. Manulife’s CFO, Colin Simpson, addressed this downturn, linking it to unfavorable life insurance claims among high-net-worth clients.
Industry Resilience Amid Geopolitical Tensions
Despite challenges posed by U.S. trade tensions, both companies have managed to thrive. Kevin Strain, CEO of Sun Life, noted that geopolitical risks have not significantly impacted the broader economy. He highlighted a favorable environment for equities and interest rates that benefits the insurance sector.
Interestingly, both insurers are experiencing a shift in investment patterns from U.S. retail investors. Many are reallocating funds away from U.S. equities towards safer options, such as cash and passive index funds.
Broader Industry Context
In addition to Sun Life and Manulife’s performance, Great-West Lifeco, the parent company of Canada Life, reported fourth-quarter earnings of $1.2 billion or $1.36 per share. This reflects an increase from $1.1 billion or $1.20 per share in the previous year.
As the Canadian insurance industry navigates through challenging times, the robust financial results of Sun Life and Manulife illustrate their strong market positions and adaptability amid economic uncertainty.
