# Sun Life Financial (SLF)

Sector: Life insurance and wealth management

| Field | Value |
|---|---|
| Price | CA$105.13 |
| Market cap | CA$58B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2027-02-10 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Far above intrinsic value

## In short

Sun Life trades above its intrinsic value because investors pay for its high return on equity, and only steady earnings growth with smaller outflows at MFS can support this price.

## Themes and gap

- Themes: Interest rates (interest-rates), China and geopolitics (china-geopolitics)
- Gap type: Slow (slow)
- Why: Only several quarters of growth in Canada, Asia and GreenOak, with smaller outflows at MFS and a stable capital ratio, can earn the price.

## About

Sun Life Financial Inc. (Sun Life) is a Canadian life insurer and asset manager based in Toronto. It reports five business groups: Sun Life Asset Management, Canada, the United States, Asia and Corporate. Sun Life Asset Management includes MFS, which manages money for investors in the United States, and GreenOak (the new name for SLC Management), which manages real estate and private assets. Canada sells group benefits, individual insurance and wealth products. The US business sells stop-loss and other group cover. Asia sells insurance in markets such as Hong Kong and Indonesia. Assets under management were $1,676 billion at September 30, 2026. Underlying net income was $1,146 million in Q3 2026. Kevin Strain is President and Chief Executive Officer. Sun Life files annual reports on Form 40-F and quarterly reports on Form 6-K with the SEC. The pick is the Toronto Stock Exchange listing in Canadian dollars.

## Thesis

Sun Life trades above its intrinsic value because investors pay for its steady earnings growth and its high return on equity, even though its asset management business has outflows. Underlying EPS rose 10% in Q3 2026 to $2.05, and underlying return on equity was 19.0%. But MFS had net outflows of US$26.9 billion in Q3, as retail investors left US equity funds, and Sun Life's total asset management net outflows were US$22.8 billion. Sun Life also paid $1.59 billion and $829 million in 2026 to buy the rest of BentallGreenOak and Crescent, and it bought Bell Partners for $522 million. Its LICAT ratio fell to 142% from 157% at the end of 2025. For the price to hold, three things must be true. Underlying EPS must keep growing at about 10% from Canada, Asia and GreenOak. MFS outflows must slow. The LICAT ratio must stay above the level that supports buybacks and the higher dividend of $1.00 per quarter. The next test is the Q4 2026 report in February 2027.

## Checkpoints

- Nov 4, 2026: Q3 2026 results: underlying EPS growth. Status: Passed. Watch: Underlying EPS growth of 8% or more with underlying return on equity above 18% passes; slower growth fails. Outcome: Underlying EPS rose 10% to $2.05 and underlying return on equity was 19.0%.
- Feb 10, 2027 (estimate): Q4 2026 results: asset management flows and capital. Status: Pending. Watch: Underlying EPS growth of 8% or more, MFS net outflows that are smaller than in Q3 and a LICAT ratio of 140% or more passes; weaker results fail.

## Balance sheet

Sun Life Financial Inc. had a LICAT ratio of 142% at September 30, 2026, against 145% at June 30 and 154% a year earlier. Sun Life Assurance's ratio was 130%. The financial leverage ratio was 24.1%. Book value per common share was $42.79 and closing common shares were 555 million. In June 2026, it issued $750 million of 4.21% subordinated debentures due 2038. The rate on its $1.0 billion Limited Recourse Capital Notes Series 2021-1 reset to 5.614% from June 30, 2026. It plans to redeem $500 million of 2.46% debentures on November 18, 2026. In the first quarter of 2026, it paid $1.59 billion for the rest of BentallGreenOak and $829 million for the rest of Crescent, funded by debt issued in 2025. Assets under management were $1,676 billion.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1097362/000109736226000032/a2026q3slfenrlive.htm
- https://www.sec.gov/Archives/edgar/data/1097362/000109736226000034/q32026shareholdersreport.htm

## Dividends

- Dividend yield: 3.6% (last 12 months, at the current price)
- Paid per share, last 12 months: CA$3.76 (4 payments)
- Current annual rate: CA$3.84 (CA$0.96 x 4 a year)
- Latest ex-dividend date: 2026-08-26, CA$0.96 per share
- Growth from 2020 to 2025: 9.9% a year
- Growth from 2015 to 2025: 8.8% a year

Dividends per share by year: 2016: CA$1.62, 2017: CA$1.745, 2018: CA$1.905, 2019: CA$2.10, 2020: CA$2.20, 2021: CA$2.31, 2022: CA$2.76, 2023: CA$3.00, 2024: CA$3.24, 2025: CA$3.52.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-11-04: Sun Life reported Q3 2026 results. Underlying net income was $1,146 million, up 9%, and underlying EPS was $2.05, up 10%. Reported net income fell 29% to $785 million. The company raised its quarterly dividend from $0.96 to $1.00 per share.
- 2026-09-21: Sun Life said that it will redeem all $500 million of its 2.46% Series 2021-1 subordinated debentures on November 18, 2026, with existing cash and other liquid assets.
- 2026-09-08: A court approved the settlement of a class action about life insurance policies that MetLife sold in the 1980s and 1990s, which Sun Life inherited through earlier Canadian deals. Sun Life seeks full recourse under MetLife's indemnity. It had booked a charge of $145 million.
- 2026-07-02: Sun Life bought Bell Partners, a US multifamily real estate manager, for $522 million. About 80% of the price was paid in Sun Life common shares.
- 2026-06-19: Sun Life issued $750 million of 4.21% Series 2026-1 subordinated debentures due 2038.
- 2026-05-26: The Toronto Stock Exchange and the regulator approved a new normal course issuer bid for up to 10 million common shares, valid until May 28, 2027.

## Latest news and filings

- Next earnings: 2027-02-10 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-02-12 | 40-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | slf-20251231 | https://www.sec.gov/Archives/edgar/data/1097362/000109736226000010/slf-20251231.htm |
| 2025-02-13 | 40-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | slf-20241231 | https://www.sec.gov/Archives/edgar/data/1097362/000109736225000008/slf-20241231.htm |

Every filing on SEC EDGAR (CIK 1097362): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001097362&type=&dateb=&owner=include&count=40

## Risks

- High: Asset management outflows may continue. MFS had net outflows of US$26.9 billion in Q3 2026, and Sun Life Asset Management gross flows fell 18%. Fee income and profit would fall if outflows last.
- Medium: Capital is lower. The LICAT ratio was 142% at September 30, 2026, down from 154% a year earlier. The financial leverage ratio was 24.1% against 21.6%. Less capital limits buybacks and deals.
- Medium: Markets and interest rates change reported results. Reported net income fell 29% in Q3 2026 because of interest rate effects and acquisition charges. Market falls would also cut fee income.
- Medium: Integration may cost more than planned. Sun Life bought out the rest of BentallGreenOak and Crescent and bought Bell Partners in 2026, and it took charges for them. Real estate and private asset fees depend on markets.
- Low: Asia is exposed to regional risks. Asia had underlying net income of $226 million in Q3 2026, up 7%. Currency, politics and rules in Hong Kong, China and Southeast Asia could change this.

## Links

- Page: https://picks.utilarium.app/company/SLF/
- History of changes: https://picks.utilarium.app/company/SLF/history/
- JSON with full history: https://picks.utilarium.app/data/company/SLF.json

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