Sun Life Financial Inc. said Thursday that improved results in its Canadian, U.S. and Asian business groups helped lead to record earnings levels in the second quarter.

The Toronto-based insurance company said earnings came in at $438 million (73¢ a share), up 19.6% from $366 million (60¢) reported a year ago. Quarterly revenue dipped slightly to $5.55 billion, down from $5.58 billion in the second quarter of 2003.

For the first half of the year, earnings were up 13.4% to $804 million, while revenue was 2% less at $11.1 billion.

The increase in earnings helped prompt the company to increase its quarterly dividend a penny to 22¢ per share.

“We are pleased with the overall results and the positive contributions made across our businesses last quarter,” CEO Donald Stewart said in a release. “A strong and continuing rebound in earnings in our U.S. operations, solid performances in our Canadian and Asian businesses and improved equity markets contributed to our record results.”

Improved results in the Canadian and U.S. business groups, especially, helped boost earnings. Sun Life Financial U.S. earnings for the second quarter 2004 were up 82% to US$80 million from the same period in 2003. Sun Life Financial Canada earnings increased 6% to $230 million.

As of June 30, the Sun Life Financial group of companies had total assets under management of $373 billion.

Meanwhile, Standard & Poor’s Ratings Services affirmed its ratings on Sun Life Assurance Co. of Canada and its subsidiaries, based on the insurer’s strong domestic franchise position, and the improved condition of the equity and fixed income markets. The outlook is stable.

“The ‘AA+’ financial strength rating on Sun Life Assurance reflects the insurer’s very strong consolidated capital strength, business profile, and operating performance, ” said S&P analyst Donald Chu. “Partially offsetting these strengths are the strong competitive pressures that Sun Life Assurance faces in its primary markets, and the susceptibility of its wealth management businesses to earnings volatility given the uncertainties associated with the equity markets and interest rates.”

The rating agency says that it views Sun Life Assurance’s consolidated capital strength as very strong. The company’s earnings also remain strong and have begun to show a favorable trend, as the global equity markets continue to show signs of recovery, it notes. “Sun Life maintains a well-diversified investment portfolio that has produced solid investment returns in the past five years, and its liquidity is viewed as extremely strong.”