Sun Life Financial Inc. beat analyst expectations in the first quarter, fueled by its asset management segment.

The Toronto-based insurance firm reported underlying earnings of C$1.82 per share, better than the C$1.71 predicted by analysts in a Bloomberg survey. Sun Life also raised its quarterly dividend to 88 Canadian cents from 84 cents. 

“I would characterize this quarter as being a return to the normal claims experience that we see,” Chief Executive Officer Kevin Strain said in an interview, adding that the insurer raised its prices significantly since the previous quarter.

Strain added that in the face of global tariff risks and a uncertain macroeconomic environment, he wants the company to focus on its strategy.

“We’re also keenly aware that the economic conditions could change because it is an unusual time,” he said. He believes Sun Life’s strong capital position, good risk management and diversified business mix “support us if the economic conditions change.” 

The company’s underlying net income grew by 19% from a year earlier to C$1.05 billion . Sun Life’s stock gained as much as 5.6% to C$88.15 on Friday, its biggest intraday boost since January 2021.

Sun Life posted “by far the biggest beat of the quarter across the lifeco peer group this earnings season,” Bank of Nova Scotia analyst Meny Grauman wrote to clients on Friday morning. But that result included elevated catch-up fees earned by the SLC Management segment, which don’t occur every quarter, he observed. Underlying net income for the overall asset management business was up 24% from the prior year.

Sun Life’s US segment reported its underlying net income rose 7% from a year earlier, driven in part by improved dental claims. That’s a bounceback from the previous quarter, when the segment’s net income fell 39% from a year earlier due to increased morbidity claims.

“After a string of earnings challenges, results here look to be getting back on track, which is an important positive for both SLF’s earnings power and sentiment on the name,” Grauman said.

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