Sun Life Financial reported a fall in first-quarter profit on Thursday, hurt by higher morbidity claims.
The quarterly results were also affected by the sale of Sun Life UK and the end of the public health emergency in the United States, CEO Kevin Strain said in a statement.
Earnings from the company’s group health and protection businesses fell 8% to $280 million, driven by less favourable morbidity experience in U.S. medical stop-loss as well lower results in U.S. dental.
The country’s second-largest life insurer posted a 4% drop in underlying net income from its individual protection business to $278 million, due to the sale of Sun Life UK.
The results come a day after bigger rival Manulife Financial beat analysts’ estimates, driven by strong growth in Asia, one of its most important markets.
Sun Life posted underlying net income of $875 million, or $1.50 per share, in the three months ended March 31, compared with $895 million, or $1.52 per share, a year earlier.