Sun Life Financial Inc. today reported fourth-quarter earnings rose 14% as strength in its U.S. mutual fund business, Asian operations, and investment gains more than offset weakness in some U.S. insurance lines.

The insurer said net income climbed to a record $545 million or 95¢ a share, for the three months ended Dec. 31, 2006. That compared with $478 million, or 82¢ a share, in the same quarter last year.

Fourth-quarter operating earnings were 94¢ a share.

Total revenue was $6.14 billion in the latest period, up from $5.34 billion a year earlier.

Return on equity was 14.0% in the quarter, versus %13.0 a year earlier.

Earnings at MFS Investment Management, the company’s Boston-based asset management company, rose 58% to $71 million from $45 million a year earlier.

Quarterly earnings at SLF Asia more than quadrupled to $33 million due to a higher contribution from CMG Asia, which Sun Life acquired late in 2005.

Earnings at SLF Canada rose 1.2% to $257 million, but earnings at SLF U.S. fell 35% to $52 million on lower earnings from annuities and individual life insurance, the company said.

Last month, Sun Life announced the acquisition of the U.S. group benefits business of Genworth Financial Inc., which the company said should add immediately to operating earnings per share.

“I am pleased to report that we have once again achieved all of our key financial objectives in 2006. This impressive financial performance demonstrates our ability to sustain earnings growth and deliver on our growth strategies,” said Donald Stewart, CEO, in a news release.

“Our recently announced acquisition of a high quality group benefits business in the United States underscores a key element of our strategy, that of growth through disciplined and focused acquisitions. In 2006 we continued to deliver on another key strategy, building global distribution, by growing our sales force in Asia, expanding into the wholesale market in Canada, launching new distribution partnerships in the United States, and further enhancing MFS’s international research and distribution platform,” he said.

Sun Life also raised its quarterly dividend to 32¢ a share from 30¢.