Underwriting efficiency remains stable with a combined ratio consistently between 88% and 90%, despite revenue growth volatility that reached a 172.4% expansion in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Revenue | 39.4B | 42.17B | 34.48B | 36.35B | 3.43B | 35.69B | 43.34B | 39.68B | 26.97B | 29.33B | 28.57B | 19.27B | 25.76B | 13.87B | 17.56B | 22.58B | 24.8B | 27.57B | 15.56B | 21.19B | 24.29B | 21.92B | 21.75B | 22.06B | 14.19B | 11.72B | 11.54B | 14.74B | 12.89B |
| Revenue Growth % | 1.32% | 22.29% | -5.15% | 960.19% | -90.39% | -17.65% | 9.22% | 47.13% | -8.06% | 2.66% | 48.25% | -25.19% | 85.7% | -20.99% | -22.24% | -8.95% | -10.05% | 77.16% | -26.55% | -12.76% | 10.81% | 0.78% | -1.4% | 55.4% | 21.11% | 1.52% | -21.69% | 14.39% | - |
| Medical Costs & Claims | 18.91B | 0 | 29.64B | 32.04B | -642M | 20.98B | 30.98B | 28.5B | 16.11B | 19.05B | 18.14B | 10.28B | 17.82B | 7.6B | 12.23B | 0 | 14.4B | 21.15B | -9.35B | -9.93B | 14.81B | 27.39B | 0 | 27.75B | 21.62B | 6.28B | 6.04B | 6.98B | 7B |
| Medical Cost Ratio % | 48.01% | 0% | 85.96% | 88.14% | -18.72% | 58.78% | 71.5% | 71.84% | 59.74% | 64.95% | 63.48% | 53.32% | 69.18% | 54.76% | 69.66% | 0% | 58.08% | 76.72% | -60.05% | -46.87% | 60.98% | 124.99% | 0% | 125.8% | 152.3% | 53.58% | 52.32% | 47.34% | 54.31% |
| Gross Profit | 20.48B | 42.17B | 4.84B | 4.31B | 4.07B | 14.71B | 12.35B | 11.17B | 10.86B | 10.28B | 10.44B | 9B | 7.94B | 6.28B | 5.33B | 22.58B | 10.4B | 6.42B | 24.91B | 31.12B | 9.48B | -5.48B | 21.75B | -5.69B | -7.42B | 5.44B | 5.5B | 7.76B | 5.89B |
| Gross Margin % | 51.99% | 100% | 14.04% | 11.86% | 118.72% | 41.22% | 28.5% | 28.16% | 40.26% | 35.05% | 36.52% | 46.68% | 30.82% | 45.24% | 30.34% | 100% | 41.92% | 23.28% | 160.05% | 146.87% | 39.02% | -24.99% | 100% | -25.8% | -52.3% | 46.42% | 47.68% | 52.66% | 45.69% |
| Gross Profit Growth % | - | 771.29% | 12.22% | 5.94% | -72.33% | 19.09% | 10.55% | 2.92% | 5.59% | -1.48% | 15.98% | 13.31% | 26.51% | 17.81% | -76.4% | 117.19% | 62% | -74.23% | -19.95% | 228.33% | 273.06% | -125.18% | 482.16% | 23.33% | -236.44% | -1.16% | -29.1% | 31.84% | - |
| Operating Expenses | 16.3B | 37.38B | 501M | 383M | 445M | 9.61B | 9.07B | 7.94B | 7.35B | 7.49B | 6.99B | 6.1B | 5.57B | 4.18B | 3.62B | -22.79B | 8.53B | 6.32B | 24.37B | 28.27B | 6.92B | -7.91B | -19.57B | -7.45B | -7.67B | 4.29B | 3.85B | 7.01B | 5.18B |
| OpEx / Revenue % | 41.38% | 88.63% | 1.45% | 1.05% | 12.98% | 26.94% | 20.92% | 20.01% | 27.24% | 25.54% | 24.47% | 31.64% | 21.61% | 30.16% | 20.6% | -100.91% | 34.38% | 22.93% | 156.6% | 133.43% | 28.48% | -36.07% | -89.97% | -33.78% | -54.03% | 36.56% | 33.33% | 47.56% | 40.23% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 528M | 438M | 406M | 378M | 226M | 209M | 203M | 166M | 150M | 123M | 116M | 46M | 41M | 82M | 63M | 62M | -614M | -472M | -297M | -98M | 194.32M | -123M | -255M | -368M | -360M |
| Combined Ratio % | 89.39% | 88.63% | 87.42% | 89.19% | -5.75% | 85.72% | 92.42% | 91.85% | 86.98% | 90.49% | 87.94% | 84.96% | 90.79% | 84.92% | 90.26% | -100.91% | 92.46% | 99.66% | 96.55% | 86.56% | 89.46% | 88.91% | -89.97% | 92.02% | 98.27% | 90.14% | 85.64% | 94.9% | 94.54% |
| Operating Income | 4.18B | 4.79B | 4.34B | 3.93B | 3.63B | 5.1B | 3.29B | 3.23B | 3.51B | 2.79B | 3.44B | 2.9B | 2.37B | 2.09B | 1.71B | -206M | 1.87B | 95M | 537M | 2.85B | 2.56B | 2.43B | 2.18B | 1.76B | 246M | 1.16B | 1.66B | 752M | 703M |
| Operating Margin % | 10.61% | 11.37% | 12.58% | 10.81% | 105.75% | 14.28% | 7.58% | 8.15% | 13.02% | 9.51% | 12.06% | 15.04% | 9.21% | 15.08% | 9.74% | -0.91% | 7.54% | 0.34% | 3.45% | 13.44% | 10.54% | 11.09% | 10.03% | 7.98% | 1.73% | 9.86% | 14.36% | 5.1% | 5.46% |
| Operating Income Growth % | - | 10.49% | 10.41% | 8.38% | -28.86% | 55.07% | 1.67% | -7.92% | 25.89% | -19.04% | 18.83% | 22.17% | 13.43% | 22.27% | 930.58% | -111.01% | 1869.47% | -82.31% | -81.14% | 11.21% | 5.35% | 11.37% | 23.98% | 615.45% | -78.7% | -30.3% | 120.35% | 6.97% | - |
| EBITDA | 4.74B | 5.32B | 5B | 4.48B | 4.15B | 5.54B | 3.69B | 3.61B | 3.74B | 3B | 3.65B | 3.06B | 2.52B | 2.21B | 1.83B | -160M | 1.91B | 177M | 600M | 2.91B | 1.95B | 1.96B | 1.89B | 1.66B | 440.32M | 1.03B | 1.4B | 384M | 343M |
| EBITDA Margin % | 12.03% | 12.61% | 14.51% | 12.33% | 121.14% | 15.51% | 8.52% | 9.1% | 13.86% | 10.22% | 12.77% | 15.9% | 9.79% | 15.97% | 10.4% | -0.71% | 7.71% | 0.64% | 3.86% | 13.73% | 8.01% | 8.93% | 8.67% | 7.54% | 3.1% | 8.81% | 12.15% | 2.6% | 2.66% |
| Interest Expense | 556.31M | 525.57M | 664M | 552M | 328.28M | 327M | 355M | 333M | 305M | 303M | 316M | 322M | 336M | 353M | 367M | 434M | 459M | 403M | 366M | 349M | 323M | 273M | 195M | 209M | 192.74M | 0 | 159M | 161M | 106M |
| Non-Operating Income | -556.31M | -525.57M | -664M | -552M | -445M | -327M | -355M | -333M | -305M | -303M | -316M | -322M | -336M | -353M | -367M | -620M | -459M | -403M | -366M | -349M | -323M | -273M | 27M | -209M | -192.74M | 0 | 317M | -161M | -106M |
| Pretax Income | 4.18B | 4.79B | 4.34B | 3.93B | 3.63B | 5.1B | 3.29B | 3.23B | 3.51B | 2.79B | 3.44B | 2.9B | 2.37B | 2.09B | 1.71B | -631M | 1.87B | 95M | 537M | 2.85B | 2.56B | 2.43B | 2.07B | 1.76B | 246M | 1.16B | 1.66B | 752M | 703M |
| Pretax Margin % | 10.61% | 11.37% | 12.58% | 10.81% | 105.75% | 14.28% | 7.58% | 8.15% | 13.02% | 9.51% | 12.06% | 15.04% | 9.21% | 15.08% | 9.74% | -2.79% | 7.54% | 0.34% | 3.45% | 13.44% | 10.54% | 11.09% | 9.5% | 7.98% | 1.73% | 9.86% | 14.36% | 5.1% | 5.46% |
| Income Tax | 877.01M | 1.02B | 1.04B | 461M | 546M | 727M | 495M | 286M | 597M | 302M | 619M | 599M | 491M | 283M | 210M | -447M | 353M | -542M | -343M | 522M | 389M | 531M | 293M | 387M | 97.95M | 291M | 439M | 418M | 274M |
| Effective Tax Rate % | 20.97% | 21.18% | 23.97% | 11.73% | 15.06% | 14.26% | 15.06% | 8.85% | 17% | 10.83% | 17.97% | 20.66% | 20.69% | 13.53% | 12.27% | 70.84% | 18.87% | -570.53% | -63.87% | 18.34% | 15.2% | 21.85% | 14.18% | 21.99% | 39.82% | 25.19% | 26.49% | 55.59% | 38.98% |
| Net Income | 3.28B | 3.74B | 3.17B | 3.34B | 3.02B | 4.37B | 2.78B | 2.94B | 2.91B | 2.49B | 2.83B | 2.3B | 1.88B | 1.05B | 1.68B | -193M | 1.51B | 622M | 855M | 2.29B | 2.14B | 1.88B | 1.69B | 1.31B | 1B | 796M | 1.11B | 164M | 54M |
| Net Margin % | 8.33% | 8.87% | 9.2% | 9.2% | 88.19% | 12.24% | 6.42% | 7.42% | 10.8% | 8.48% | 9.89% | 11.93% | 7.3% | 7.6% | 9.57% | -0.85% | 6.08% | 2.26% | 5.49% | 10.8% | 8.83% | 8.56% | 7.79% | 5.93% | 7.05% | 6.79% | 9.58% | 1.11% | 0.42% |
| Net Income Growth % | 0.05% | 18.01% | -5.15% | 10.55% | -30.8% | 57.14% | -5.5% | 1% | 17.17% | -12% | 22.87% | 22.21% | 78.39% | -37.24% | 970.98% | -112.81% | 142.28% | -27.25% | -62.63% | 6.72% | 14.29% | 10.74% | 29.51% | 30.8% | 25.63% | -28.03% | 574.39% | 203.7% | - |
| EPS (Diluted) | 8.15 | 6.15 | 5.27 | 5.24 | 4.89 | 6.68 | 4.08 | 4.39 | 4.77 | 3.49 | 4.03 | 3.55 | 2.86 | 1.55 | 2.59 | -0.33 | 2.39 | 0.94 | 1.37 | 3.85 | 3.58 | 3.12 | 2.79 | 2.15 | 0.69 | 1.87 | 2.09 | 0.41 | 0.14 |
| EPS Growth % | -2.01% | 16.7% | 0.57% | 7.16% | -26.8% | 63.73% | -7.06% | -7.97% | 36.68% | -13.4% | 13.52% | 24.13% | 84.52% | -40.15% | 884.85% | -113.81% | 154.26% | -31.39% | -64.42% | 7.54% | 14.74% | 11.83% | 29.77% | 211.59% | -63.1% | -10.53% | 409.76% | 192.86% | - |
| EPS (Basic) | - | 6.16 | 5.29 | 5.13 | 4.90 | 6.73 | 4.11 | 4.42 | 4.81 | 3.51 | 4.05 | 3.57 | 2.88 | 1.56 | 2.62 | -0.33 | 2.48 | 0.95 | 1.40 | 3.90 | 3.62 | 3.14 | 2.81 | 2.15 | 0.69 | 1.88 | 2.10 | 0.41 | 0.14 |
| Diluted Shares Outstanding | 402.6M | 572.65M | 581M | 589M | 589M | 590M | 589M | 597M | 611M | 615.76M | 619M | 615.49M | 619M | 614M | 604M | 580M | 611M | 562M | 562M | 572M | 580M | 590M | 602M | 608M | 546.38M | 425.67M | 421M | 400M | 400M |
Underwriting Volatility and Inflation
As reported in recent financial statements, Sun Life's top-line performance exhibits significant quarterly variance, with revenue growth swinging from a 172.4% expansion in 2025Q4 to a 21.7% contraction in 2026Q1, suggesting that traditional revenue metrics are currently unreliable indicators of the company's long-term institutional growth trajectory.
The extreme fluctuations in reported revenue appear to be a byproduct of IFRS 17 accounting transitions rather than a fundamental shift in business demand. Investors should monitor the stability of fee-based income from the asset management segment to gauge true organic growth, as premium-based revenue remains susceptible to accounting noise.
Based on the provided data, the combined ratio has largely hovered between 88% and 90% over the last several quarters, indicating that Sun Life maintains a consistent underwriting profit despite the broader industry challenges regarding medical inflation and rising claims costs observed in recent quarterly filings.
The company's ability to keep the combined ratio below the 90% threshold suggests effective pricing power within its group benefits franchise. However, the uptick to 95.5% in 2023Q4 warrants further investigation, as it may indicate periodic sensitivity to adverse morbidity trends that could compress margins if left unmitigated.
According to historical income statement data, the transition to IFRS 17 has fundamentally altered profit recognition patterns, evidenced by the sharp 68% decline in net income during 2024Q4, which appears to reflect accounting adjustments rather than a sudden deterioration in the company's core operational health.
This period marks a critical inflection point where the volatility of market-related items began to dominate headline earnings figures. Analysts should prioritize underlying net income metrics to strip away these transitory accounting impacts and assess whether the company's core insurance operations are generating sustainable value for shareholders.
While underwriting margins appear resilient, the loss ratio consistently tracking near 87% suggests that Sun Life remains highly exposed to medical inflation, which may indicate that the company's current pricing models are barely keeping pace with rising healthcare costs in its core US and Canadian markets.
If medical inflation continues to accelerate, the company may struggle to maintain its current combined ratio without aggressive premium hikes that could risk customer retention. Investors should monitor whether the company can successfully pass these costs to corporate clients without triggering a decline in its group benefits market share.
Quick answers to the most common questions about buying SLF stock.
For fiscal year 2025, Sun Life Financial Inc. (SLF) reported total revenue of $42.17B. This represents a 227.2% increase compared to $12.89B in 1998.
Sun Life Financial Inc. (SLF) is profitable, generating $3.74B in net income for the fiscal year ending 2025 with a net profit margin of 8.9%.
Sun Life Financial Inc. (SLF) reported an operating income of $4.79B, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Sun Life Financial Inc. (SLF) generated $42.17B in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.