| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 17.6x | 17.8x | Around median | |
Growth | 24 | 1.3% | 7.1% | Bottom tier | |
Quality | 79 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 43 | 3.11% | 2.12% | Around median | |
Momentum | 95 | 41.4% | 2.9% | Top tier | |
Sentiment | 90 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sun Life Financial operates in insurance, wealth management, and asset management across Canada, Asia, and the United States, combining individual insurance, health and risk solutions, medical stop-loss insurance, and dental coverage, alongside traditional and alternative investment management through MFS, SLC Management, Crescent, Pantheon, and Aditya Birla Sun Life Asset Management. Its earnings are generated from underwriting and insurance results, fee-earning assets under management, and new investment inflows, while its geographic reach and diversified distribution channels reduce dependence on any single business.
In fiscal year 2025, revenue increased to $41.9 billion from $38.8 billion in fiscal year 2024, an increase of approximately 8%, and net income rose to $3.8 billion from $3.3 billion, while earnings per share increased to 6.15 from 5.26. In Q2 fiscal year 2026, underlying net income was C$1.12 billion versus C$1.02 billion a year earlier, and underlying earnings per share were C$2.02, up 13%, while reported net income reached C$1.01 billion versus C$716 million.
Growth in Q2 fiscal year 2026 was broad-based: Canada recorded record underlying net income of C$427 million, up 23%, underlying net income in Asia increased 21%, and in the United States it increased 15%, while Sun Life Asset Management generated underlying net income of C$262 million, up 4%. Underlying return on equity was 19.1%, and total contractual service margin reached C$15.3 billion, up 12%, with no disclosure in the data of a consolidated gross revenue margin.
The analyst consensus on SLF is Neutral, with an average price target of $81 and identical high and low targets at the same level; therefore, the target range does not provide sufficient diversity of views. The target is below the 52-week range high of $84.38 and above its low of $57.22, while the available data do not permit a reliable comparison based on the earnings multiple; consequently, the valuation rationale depends primarily on 13% underlying earnings growth and a 19.1% underlying return on equity, balanced against risks related to dental, MFS flows, and Asia margins.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Underlying net income was C$1.12 billion versus C$1.02 billion a year earlier, and underlying earnings per share increased 13% to C$2.02. Canada recorded record underlying net income of C$427 million, up 23%, while underlying net income increased 21% in Asia and 15% in the United States. Growth in insurance, improved credit experience in Asia, favorable insurance and investment results, and momentum at SLC Management contributed to this performance.
Medical stop-loss insurance sales increased 86%, and premiums rose 25% year over year in Q2 fiscal year 2026. Management reported that loss ratios remained within the target range in the mid-seventies and that the business cohort that began on January 1, 2025 was 97% complete and in line with expectations. However, the January 1, 2026 cohort was only approximately 15% complete as of August 7, 2026, so the assessment of its actual experience remained at an early stage.
Medicaid membership declined 9% in Q2 fiscal year 2026 as unprofitable contracts were terminated and industry-wide volume pressures continued. In contrast, commercial dental sales increased 10%, and loss ratios improved due to pricing, portfolio management, and expense control. Management said that the transition to a more stable earnings mix will take one to two years, and that the government dental business will become a smaller component and remain difficult for several years.
Automated analysis for informational purposes only — not investment advice.
Individual insurance sales in Asia reached C$875 million in Q2 fiscal year 2026, up 20%, while Hong Kong sales increased 20% and Indonesia sales increased 69%. The number of Hong Kong advisors expanded 28% to approximately 4,000 advisors, while the CIMB Niaga agreement supported momentum in Indonesia. However, the contractual service margin for new business declined year over year to C$277 million, as competition, mix, and pricing kept Hong Kong margins in the mid-thirties.
Sun Life Asset Management generated underlying net income of C$262 million in Q2 fiscal year 2026, up 4%. The platform raised $4.7 billion and deployed $6.2 billion, while Crescent closed a direct lending transaction with $10.8 billion of investable capital and a $3.2 billion private credit continuation vehicle with Pantheon. In contrast, outflows from MFS continued due to pressure on active equity management, despite its exchange-traded fund assets reaching $3 billion after doubling since the beginning of fiscal year 2026.
Sun Life ended Q2 fiscal year 2026 with a LICAT ratio of 145% and C$2.3 billion of liquidity at the holding company. Leverage was 23.8%, and organic capital generation reached 41%, exceeding the company's guidance range of 30% to 40%. The company returned half a billion Canadian dollars through common share dividends and repurchased 0.8 million shares under a program authorizing the repurchase of up to 10 million shares.
