Strong Q4 Performance with Mixed Results: Sun Life reported Q4 underlying earnings of $965 million, down 2% year-over-year, primarily due to weaker U.S. results from adverse morbidity experience in the stop-loss health insurance segment. Full-year underlying net income increased 3% to $3.9 billion, marking solid growth despite challenges in certain areas.

U.S. Stop-Loss Claims and Pricing Actions: The U.S. medical stop-loss business saw a significant spike in claims severity, resulting in a full-year loss ratio of 74%, slightly above the target of 73%. The company has implemented price increases averaging 14% effective January 1, 2025, and additional underwriting actions to mitigate future risks, but some pressure from severity may persist.

Record Capital Raising and Asset Management Success: SLC Management raised a record $10 billion in Q4, bringing full-year total capital raising to $24 billion, highlighting strong fundamentals across its wealth management segments despite net outflows at MFS. This reflects an opportunity for future growth as investor sentiment may shift positively toward solid real estate and alternative investments.