Sun Life Financial Inc.

This is our first report on Sun Life Financial, a prominent financial service provider. The company performed well in the quarter, driven by its execution capabilities and growth in its health and protection businesses. Despite challenging global markets for asset management, Sun Life saw a positive performance in MFS and SLC management, with increased assets under management and higher fee-related earnings. Sun Life US and Sun Life Canada delivered solid earnings driven by growth across their business lines. Sun Life Asia experienced notable sales growth and leadership in key markets, such as the Philippines and Hong Kong, while announcing strategic partnerships to expand its presence. The company’s commitment to client impact was evident through initiatives focused on healthcare access, mental health support, and financial security. Sun Life’s dedication to sustainability and diversity garnered recognition and reinforced its trusted brand reputation. Although the external environment continues to be complicated and unreliable, their team remains confident that their diversified and capital-light business mix, strong capital position, and prudent approach to risk management will allow them to assist their clients in achieving life confidence and security and leading healthier lives. We initiate coverage on the stock of Sun Life Financial Inc. with a ‘Hold’ rating.