Analyst Note| Rajiv Bhatia, CFA |
Sun Life reported a decent third quarter with underlying EPS of CAD 1.54 roughly in line with the FactSet consensus estimate of CAD 1.53. Underlying net income was up 7%. Asset management was the star of the quarter with 23% underlying earnings growth, which is not surprising given equity market appreciation. Underwriting generally weighed on the firm’s insurance operations. Overall, there was little that would alter our long-term view of the firm, and we will maintain our fair value estimate of CAD 68.