TORONTO, Feb. 11, 2026 /CNW/ - Sun Life Financial Inc.(EQNX::nobreakspace)(TSX: SLF) (NYSE: SLF) announced its results for the fourth quarter and full year ended December(EQNX::nobreakspace)31, 2025.

• Underlying net income⁽¹⁾ of $1,094 million increased $129 million or 13% from Q4'24 (full year - $4,201 million increased $345 million or 9% from 2024); underlying EPS⁽¹⁾⁽²⁾ of $1.96 increased 17% from Q4'24 (full year - $7.45 increased 12% from 2024 ); underlying return on equity ("ROE")⁽¹⁾ was 19.1% (full year - 18.2%).
  • Asset management & wealth underlying net income⁽¹⁾⁽³⁾: $534 million, up $48 million or 10% (full year - $1,976 million, up $153 million or 8%).
  • Group - Health & Protection underlying net income⁽¹⁾: $308 million, up $42 million or 16% (full year - $1,248 million, up $52 million or 4%).
  • Individual - Protection underlying net income⁽¹⁾⁽⁴⁾: $362 million, up $52 million or 17% (full year - $1,347 million, up $146 million or 12%).
  • Corporate expenses & other⁽¹⁾⁽⁴⁾: $(110) million net loss, an increase of $(13) million in net loss or 13% (full year - $(370) million net loss, an increase of $(6) million in net loss or 2%).
• Reported net income of $722 million increased $485 million or 205% from Q4'24 (full year - $3,472 million increased $423 million or 14% from 2024); reported EPS⁽²⁾ of $1.29 increased 215% from Q4'24 (full year - $6.15 increased 17% from 2024); reported ROE⁽¹⁾ was 12.6% (full year - 15.1%).
• Assets under management ("AUM")⁽¹⁾ of $1,605 billion increased $62 billion or 4% from December 31, 2024.

"Sun Life delivered strong fourth quarter performance driven by disciplined execution with underlying net income reaching $1.1â?¯billion, contributing to 17% underlying earnings per share growth over Q4 last year and underlying return on equity of 19.1%," said Kevin Strain, President and CEO of Sun Life.

"Our diversified strategy combined with our focus on our Client and our Purpose proved its strength and resilience throughout the quarter. We saw robust earnings and sales in Asia, solid wealth sales in Canada, and meaningful progress at SLC Management, which exceeded its Investor Day earnings target. We're also pleased with the earnings and sales growth in our U.S. stop-loss business."

Strain added, "We closed 2025 with nine percent full year underlying net income growth, strong sales in asset management, wealth, health, and protection, and a 17% increase in New Business Contractual Service Margin. Our LICAT ratio was 157% and we advanced our Medium-Term Objectives with underlying ROE at 18.2%, underlying EPS growth at 12%, and a dividend payout ratio of 47%."

Financial and Operational Highlights

Financial and Operational Highlights - Quarterly Comparison (Q4'25 vs. Q4'24)

Underlying(EQNX::nobreakspace)net income⁽¹⁾ of $1,094 million increased $129 million or 13% from prior year, driven by:

• Asset management & wealth⁽¹⁾ up $48 million: Improved credit experience and fee income in Canada wealth, higher fee income, net of expenses, in MFS⁽²⁾, and higher fee-related earnings, offset by lower net seed investment income, in SLC Management.
• Group - Health & Protection⁽¹⁾ up $42 million: Improved U.S. medical stop-loss morbidity experience and business growth in Canada, partially offset by higher distribution costs in U.S. Group Benefits.
• Individual - Protection⁽¹⁾⁽³⁾ up $52 million: Business growth, favourable mortality experience and higher investment earnings in Asia, and favourable mortality experience in the U.S., partially offset by lower contributions from joint ventures in Asia.
• Corporate expenses & other⁽¹⁾⁽³⁾ $(13) million increase in net loss reflecting higher financing costs supporting the acquisition of our remaining interests in SLC Management affiliates.

Reported net income of $722 million increased $485 million or 205% from prior year, driven by:

• Changes in tax-exempt investment income primarily in Corporate⁽⁴⁾ reflecting higher losses in the prior year;
• The increase in underlying net income; and
• The prior year impacts from an impairment charge of $186 million on an intangible asset related to bancassurance in Vietnam and a provision in U.S. Dental; partially offset by
• Unfavourable ACMA⁽⁵⁾ impacts.
• Market-related impacts were in line with the prior year as favourable equity market impacts and improved real estate experience⁽⁶⁾ were offset by unfavourable other market-related and interest rate impacts.

Underlying ROE was 19.1% and reported ROE was 12.6% (Q4'24 - 16.5% and 4.0%, respectively). SLF Inc. ended the quarter with a LICAT ratio of 157%.

Business Group Highlights

Asset Management: A global leader in asset management

Asset Management underlying net(EQNX::nobreakspace)income of $370 million increased $10 million or 3% from prior year, driven by:

• MFS up $11 million (up $8 million on a U.S. Dollar basis): Higher fee income from higher average net assets ("ANA") partially offset by higher expenses. Pre-tax net operating profit margin⁽¹⁾ was 40.0% for Q4'25, compared to 40.5% in the prior year.
• SLC Management down $1 million: Higher fee-related earnings offset by lower net seed investment income. Fee-related earnings⁽¹⁾ increased 25% driven by capital raising and higher property management fees. Fee-related earnings margin⁽¹⁾ was 27.5% for Q4'25, compared to 23.0% in the prior year.

Reported net income of $318 million decreased $8 million or 2% from prior year. (EQNX::nobreakspace)

Foreign(EQNX::nobreakspace)exchange translation led to a decrease of $1 million in underlying net income and reported net income, respectively.(EQNX::nobreakspace)

Asset Management gross flows⁽²⁾ decreased $3.6 billion or 7%, driven by lower gross flows in(EQNX::nobreakspace)SLC Management partially offset by higher gross flows in MFS.

Total AUM⁽¹⁾ at(EQNX::nobreakspace)Q4'25 was $1,154 billion (Q4'24 - $1,121 billion), consisting of $894(EQNX::nobreakspace)billion (US$651 billion) in MFS (Q4'24 - $871(EQNX::nobreakspace)billion and US$606 billion, respectively) and $260 billion in SLC Management (Q4'24 - $250 billion). Total Asset Management net outflows of $19.5 billion in Q4'25 (Q4'24 - net outflows of $14.3 billion) reflected MFS net outflows of $25.4 billion (US$18.2 billion) (Q4'24 - net outflows of $28.5 billion and US$20.4 billion, respectively) from retail net outflows reflecting continued outflows in U.S. equity markets by retail investors, and institutional portfolio rebalancing, partially offset by SLC Management net inflows of $5.9 billion (Q4'24 - net inflows of $14.1 billion) from capital raising.

Effective January 1, 2026, we extended and formalized our asset management pillar in Sun Life Asset Management. In addition to MFS and SLC Management, Sun Life Asset Management includes Sun Life's stake in Aditya Birla Sun Life Asset Management, previously part of the Asia business segment, as well as Sun Life's pension risk transfer business, previously part of the Canada business segment. This new structure will help accelerate growth between our asset management, insurance, and wealth businesses and drive strategic partnerships to the benefit of our Clients. Effective January 1, 2026, Sun Life's asset management financial results will reflect this new structure.

MFS is focused on meeting Client needs by providing a diverse range of investment products. MFS continued to experience solid fixed income fund performance, generating net inflows⁽¹⁾ of US$5.5 billion for this asset class in the year.

BentallGreenOak ("BGO") closed its inaugural U.S. Industrial Strategies fund, bolstered by data centre co-investment, raising US$800 million in the fourth quarter. This fund reflects BGO's ability to deliver the next generation of digital infrastructure and energy-intensive logistics facilities. In addition, BGO and Stoneweg Spain⁽³⁾ have launched a strategic joint venture to deliver modern, flexible, and sustainable living solutions, with a planned total investment of (EQNX::euro)500 million.

InfraRed Capital Partners ("InfraRed") launched a digital infrastructure vehicle with Pantheon, a leading global private markets investor, to invest in the data centre and telecommunications towers sectors in Europe, North America, and Australasia, highlighting InfraRed's digital experience. InfraRed also made a majority investment in NxN Data Centers, a next generation data centre platform based in Spain, to deliver best-in-class data centre infrastructure in a fast-growing digital landscape.

For the second year in a row, the SLC Management team won the 2025 Insurance Investor North American Award for Health Insurance Provider Investment Strategy of the Year, reflecting our team's dedication to building thoughtful and resilient investment strategies with our Clients.

Canada: A leader in health, wealth, and insurance

Canada underlying net income of $417 million increased $51 million or 14% from prior year, driven by:

• Asset management & wealth up $41 million: Improved credit experience and higher fee income from higher AUM.
• Group - Health & Protection up $2 million: Business growth and favourable mortality experience mostly offset by less favourable morbidity experience.
• Individual - Protection up $8 million: Favourable insurance experience.

Reported net income of $307 million increased $54 million or 21% from prior year, driven by the increase in underlying net income and market-related impacts primarily reflecting improved interest rate impacts partially offset by unfavourable other market-related impacts.

Canada's sales⁽²⁾:

• Asset management gross flows & wealth sales of $7 billion were up 46%, driven by Group Retirement Services ("GRS") and higher mutual fund sales in Individual Wealth. GRS sales reflect strong defined benefit solution sales combined with timing of large case sales compared to the prior year, higher defined contribution sales from large case sales, and increased rollover volumes.
• Group - Health & Protection sales of $95 million were up 8%, reflecting higher health product sales.
• Individual - Protection sales of $133 million were down 6%, reflecting a combination of lower participating life sales and strong non-participating life sales.

In Individual Insurance, we maintained the leading market position in life and health for five consecutive years⁽¹⁾. Our momentum in non-participating products continued, with gross sales up 10% in 2025 compared to the prior year. Sun Life was also named Life and Health Insurer of the Year at the tenth annual Insurance Business Canada Awards, recognizing our commitment to delivering innovative solutions and exemplary Client service.

In Sun Life Health, we led the market in total sales⁽²⁾. Our 2025 sales were up 15% compared to the prior year, reflecting growth in large case Clients. In the fourth quarter, we launched a program to expand access to virtual healthcare for underserved communities across Canada, helping more Canadians to get the care they need. Through partnerships with Families Canada, United Way Greater Toronto, and Centraide of Greater Montreal, more than 10,000 participants will receive no-cost care through Dialogue, a leading virtual healthcare and wellness platform in Canada.

U.S.: A leader in health and benefits

U.S. underlying net income of US$150 million increased US$35 million or 30% ($210 million(EQNX::nobreakspace)increased $49 million or 30%) from prior year,(EQNX::nobreakspace)driven by:

• Group - Health & Protection up US$27 million: Higher Group Benefits results primarily reflecting improved medical stop-loss morbidity experience, partially offset by higher distribution costs.
• Individual - Protection up US$8 million: Favourable mortality experience.

Reported(EQNX::nobreakspace)net income was US$93 million compared to reported net loss of US$1 million in the prior year (reported net income was $133 million compared to reported net loss of $7 million in the prior year), driven by the increase in underlying net income, market-related impacts primarily reflecting improved interest rate impacts, and a prior year provision in Dental, partially offset by DentaQuest acquisition, integration and restructuring costs.

Foreign exchange translation had no significant impact to the change in underlying net income and reported net income, respectively.

U.S. group sales of US$1,206(EQNX::nobreakspace)million were up 45% ($1,682 million, up 45%), primarily driven by medical stop-loss and large case employee benefits sales in Group Benefits, and higher Medicaid sales in Dental.

We continue to make benefits easier and more accessible through new digital capabilities and improved automation. In the fourth quarter, we collaborated with Pasito, an AI-powered platform that connects with more than 200 payroll providers to deliver personalized benefits guidance. This helps members choose plans that fit their needs, their budgets and best complement their health coverage, driving better engagement and member decision making.

We also streamlined the Supplemental Health claims process, strengthening straight-through processing and delivering more automated claims integration this year. These changes improved Client satisfaction⁽³⁾ scores by 20 points in 2025 and enabled faster claims payments to members by 55% year-over-year, even as claim volumes rose by more than 70% during the same time period.

Asia: A regional leader focused on fast-growing markets

Asia underlying net income of $207 million increased $32 million or 18% from prior year, driven by:

• Asset management & wealth down $3 million: Lower fee income related to the transitioning of the administration business to the centralized eMPF platform in Hong Kong.
• Individual - Protection⁽⁴⁾ up $35 million: Continued strong sales momentum and in-force business growth across most markets, favourable mortality experience in High Net Worth, higher investment earnings, and lower expenses, partially offset by lower contributions from joint ventures and unfavourable credit experience.

Reported net income of $131 million increased $120 million from prior year,(EQNX::nobreakspace)driven by the increase in underlying net income and a prior year impairment charge on an intangible asset related to bancassurance in Vietnam, partially offset by unfavourable market-related and ACMA impacts. The market-related impacts were primarily from unfavourable interest rate and other market-related impacts, partially offset by improved equity market impacts.

Foreign exchange translation led to a decrease of $2 million in underlying net income and a decrease of $1 million in reported net income.

Asia's sales⁽¹⁾:

• Individual sales of $894 million were up 49%, driven by:
  • Higher sales in Hong Kong from growth across all channels; and
  • Higher sales in India and Indonesia primarily from the bancassurance channel; partially offset by
  • Lower sales in High Net Worth from the broker channel.
• Asset management gross flows & wealth sales of $2 billion were up 8%, driven by higher fixed income and equity fund sales in India, partially offset by lower fixed income fund sales in the Philippines.

New business CSM of $300 million in Q4'25 was up from $201 million in the prior year, driven by higher sales in Hong Kong. Despite strong competition, Hong Kong maintained strong margins, although reduced from the prior year.

We remain committed to improving the Client experience through enhanced digital capabilities. In Malaysia, Clients benefitted from a faster onboarding experience, with almost two-thirds of our Clients receiving automated underwriting decisions within two hours. In Indonesia, we introduced automated claims features, delivering a faster and more efficient claims process for our Clients, with digital submissions rising approximately eight percentage points from the prior year. We also launched Digital Check-In within our Client Service Centres, an online booking service which helps to reduce service centre wait times.

In December, we expanded our reach to our High-Net-Worth ("HNW") Clients by opening an office in the Dubai International Financial Centre.(EQNX::nobreakspace)

Corporate

Underlying net loss was $110 million compared to underlying net loss of $97 million in the prior year, reflecting higher financing costs supporting the acquisition of our remaining interests in SLC Management affiliates.

Reported net loss was $167 million compared to reported net loss of $346 million in the prior year, driven by changes in tax-exempt investment income⁽²⁾ reflecting higher losses in the prior year, partially offset by the change in underlying net loss.

In 2025, Sun Life was re-certified as a Great Place to Work(EQNX::registered) in Canada, the U.S., Vietnam, the Philippines, Indonesia, Malaysia, Singapore, India, and Ireland. SLC Management was also named one of Pensions & Investments⁽³⁾ 2025 Best Places to Work in Money Management for the sixth year in a row. These recognitions affirm our commitment to creating an environment where employees feel valued, supported, and inspired to reach their full potential, and motivated and equipped to excel in creating lasting value for our Clients.

Foreign exchange translation had no significant impact to the change in underlying net income and led to an increase of $3 million in reported net income.

(EQNX::nobreakspace)

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