Battered by negative equity markets and a stressed credit environment, Sunlife Financial Inc. reported a weaker profit for the fourth quarter ended Dec. 31.

The Toronto-based insurance company said earnings for the quarter fell to $129 million, or 23¢ a share, down from year-earlier profits of $555 million, or 97¢ a share.

Sun Life said much of the loss was attributable to $682 million in charges related to equity markets and $365 million in asset impairment charges. This was partially offset by an after-tax gain of $825 million from the company’s sale of its interest in CI Financial.

Revenue for the quarter was $4.7 billion, down from $5.4 billion reported during the same period in 2007.

“The fourth quarter concluded an extremely challenging year across the global financial services sector,” CEO Donald Stewart said in a release.

“While Sun Life’s overall financial returns are very disappointing, reflecting negative equity markets and a stressed credit environment, our balance sheet remains strong and well diversified.”

Despite the weaker profit, Sun Life maintained its quarterly shareholder dividend of 36¢ per common share.

Separately, Sun Life announced the appointment of James Sutcliffe as a director effective Feb. 10. Sutcliffe will stand for election by shareholders as a director at the annual meeting on May 21.

Sutcliffe retired as Group Chief Executive Officer of Old Mutual plc, an international savings and wealth management company, in September 2008.

IE