Revenue growth is highly volatile under IFRS 17, swinging from $3.3B in 2024Q4 to $13.9B in 2026Q2 (a 51.4% YoY surge), but underwriting profitability remains stable with combined ratios consistently below 100%, ranging from 82.0% to 90.5%.
Sun Life Financial Inc. (SLF) annual income statement — 28-year revenue, gross profit & net income history
| 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 | 44.05B | 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 % | 12.4% | 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 | 28.52B | 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 % | 64.75% | 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 | 15.53B | 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 % | 35.25% | 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 | 10.76B | 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 % | 24.43% | 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 | 39M | 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 % | 89.18% | 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 | 4.77B | 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 % | 10.82% | 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 | 5.07B | 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 % | 11.51% | 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 | 558.31M | 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 | -394.89M | -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 | 4.56B | 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 % | 10.36% | 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 | 962.74M | 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 % | 21.1% | 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 | 3.58B | 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 % | 8.14% | 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 % | 7.23% | 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) | 6.41 | 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 % | 4.8% | 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 | 559M | 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 |
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.
Key Metrics
Top Statement Risk
Commercial real estate exposure
Premium Growth Volatile but Underlying Momentum
Sun Life's revenue swung from $15.4B in 2024Q3 to $3.3B in 2024Q4, then surged 51.4% YoY in 2026Q2, reflecting IFRS 17 accounting volatility rather than smooth operational trends.
The 22.3% YoY revenue growth in the latest quarter appears driven by a mix of premium volume and market-related effects, but the extreme quarter-to-quarter swings (e.g., -81.4% in 2024Q4) suggest that reported revenue is not a reliable indicator of core business momentum. Investors should focus on underlying earnings and CSM growth, which better capture the trajectory of new business and renewals. The Asia segment likely remains the primary volume driver, but its contribution is obscured by these accounting distortions.
Underwriting Profitability Holds Near 90%
Combined ratios have remained consistently below 100%, ranging from 82.0% to 90.5% over the past ten quarters, indicating sustained underwriting discipline despite revenue volatility.
The combined ratio in 2026Q2 was 90.2%, slightly above the 89.3% in 2025Q3, but still comfortably profitable. The loss ratio spiked to 89.3% in 2026Q2 from 59.8% in 2026Q1, likely reflecting seasonal or one-off claims, yet the expense ratio appears well-controlled. This stability suggests that Sun Life's group benefits and health businesses are pricing risks adequately, though medical inflation remains a watch item for margin compression.
Reserve Releases Mask Underlying Trends
Prior-year reserve releases appear to be supporting reported earnings, as evidenced by the 2024Q4 combined ratio of 82.0% versus 89.3% in 2024Q3, a gap that may indicate favorable development.
The sharp improvement in combined ratio in 2024Q4, despite a revenue collapse, suggests that reserve releases or one-time items boosted underwriting results. While this is not inherently negative, investors should monitor whether such releases are masking deterioration in current accident-year loss ratios. If reserve redundancies are exhausted, future combined ratios could rise, pressuring margins.
Investment Income Contribution Unclear
Investment income data is unavailable across all reported periods, leaving a gap in assessing Sun Life's yield contribution to overall earnings, though net income margins of 8.9% suggest a meaningful reliance.
Without explicit investment income figures, it is difficult to quantify how much of Sun Life's profitability derives from its general account versus underwriting. Given the company's asset-heavy life insurance and annuity operations, investment returns are likely a significant earnings driver, especially in a rising rate environment. However, the lack of disclosure in this dataset warrants caution; investors should refer to full financial statements for yield and duration details.
2024Q4 Anomaly Signals Accounting Noise
The 2024Q4 quarter stands out with revenue of only $3.3B and net income of $142M, a dramatic deviation from the $15.4B revenue and $1.4B net income in 2024Q3, highlighting IFRS 17's impact.
This quarter likely reflects a combination of market-related losses and accounting reclassifications under IFRS 17, rather than a fundamental business deterioration. The EPS of $0.41 was the lowest in the series, but subsequent quarters recovered strongly, suggesting the dip was transitory. Investors should treat such quarters as noise and focus on underlying earnings trends, which appear more stable.
Earnings Quality Questioned by Volatility
Reported net income swings from $142M in 2024Q4 to $1.4B in 2024Q3, raising concerns about the reliability of headline earnings and the extent to which market movements distort core profitability.
The extreme volatility in net income, driven by IFRS 17's market-related items, suggests that reported earnings are not a clean measure of operational performance. Management's 'Underlying Net Income' metric, which excludes these items, is likely a better gauge, but its absence here limits analysis. Additionally, the low debt/equity ratio of 0.87% may understate true leverage if subordinated debt is excluded, potentially masking balance sheet risk. Investors should scrutinize the quality of earnings and the sustainability of the 14.5% ROE.