Sun Life Financial Inc. yesterday reported a 9.1% increase in fourth-quarter profit thanks to strong results at its Canadian and U.S. operations.
The insurer said net income for the quarter was $478 million, or 82¢ a share, compared with $438 million, or 74¢ a share, in the year-before quarter.

Revenue for the quarter was $5.34 billion, up from $5.26 billion a year ago.

Return on equity was 13.0% up from 12.1% a year ago.

“2005 was an impressive year for the company both financially and operationally. The benefits of our investment in distribution are clear, with increased market share in individual life in Canada, record Group Life & Health sales in the U.S., and a significant increase in our distribution scale in each of our key growth markets of India, China and Hong Kong,” said Donald Stewart, CEO.

In the fourth quarter of 2005, Sun Life Canada’s earnings increased 13% over the fourth quarter of 2004, primarily due to increased earnings in Group Benefits and from CI Financial Inc. Premiums and deposits for the fourth quarter of 2005 were $4.1 billion, up 6% from the fourth quarter of 2004, led by growth in Group Benefits.

The appreciation of the Canadian dollar against the U.S. dollar reduced earnings in SLF U.S. by $6 million (Cdn.) in the fourth quarter of 2005 compared to the fourth quarter of 2004, and by $36 million (Cdn.) for the full year 2005.

Fourth quarter 2005 earnings of US$128 million were 68% higher than in the fourth quarter of 2004. Results were positively affected by additional tax benefits, improved spreads and higher fee income on variable products.

Sun Life officials were forced to publish the company’s annual financial results a day ahead of schedule, after learning the numbers had been unwittingly distributed to nearly 20 analysts.

The insurer sent out electronic copies of its supplementary financial package to research analysts on Tuesday, and believed it had blacked out all reference to its fourth-quarter financial performance..

However, it was possible to override the blacked-out portions and access the quarterly financials. An analyst who saw the numbers alerted the company to the glitch yesterday morning. Sun Life executives had to scramble to explain the situation to regulators and then publish the results 24 hours ahead of time.