Sun Life Financial Inc. announced record earnings of $512 million for the second quarter ended June 30. Earnings per share were up 8.6% (14.8% in constant currency) over the second quarter of 2005 and return on equity grew to 13.6% for the quarter, up from 13% in the same period in 2005.
“We achieved strong growth in sales and value of new business domestically and internationally as we continued to execute on our strategy to enhance our global distribution capabilities,” said CEO Donald A. Stewart. “Continued expansion in India and China underscored our commitment to growth in Asia, and our excellent market position in Canada contributed to strong, stable earnings growth in each of our Canadian businesses this quarter.”
Paul W. Derksen, executive vice president and chief financial officer, noted: “We continued to deliver on our financial commitments to shareholders with solid earnings growth and ROE improvement this quarter despite lower equity markets and the continued strengthening of the Canadian dollar.”
“Demonstrating continued confidence in the sustainability of our earnings growth, Sun Life Financial’s Board of Directors raised the common share dividend to 30 cents per share, a total increase of 18% this year,” he added.
In related news, the board of directors also announced a quarterly shareholder dividend of $0.30 per common share, payable Oct. 2 to shareholders of record at the close of business on Aug. 23. This dividend represents an increase of 9% from the $0.275 a share paid in the previous quarter.
The board also announced quarterly dividends of $0.296875 per Class A Non-Cumulative Preferred Share Series 1; $0.30 per Class A Non-Cumulative Preferred Share Series 2; and $0.278125 per Class A Non-Cumulative Preferred Share Series 3, payable Sept. 29 to shareholders of record at the close of business on Aug. 23.