DBRS Morningstar published a commentary discussing the differences between the limited recourse capital notes (LRCNs) issued by Canadian banks and insurance companies and the AT1 notes issued by Credit Suisse. The commentary explains why Canadian LRCNs will not function in the same manner as the Credit Suisse AT1s in a default scenario and what the implications are for investors. Key highlights include the following: -- LRCNs issued by Canadian financial institutions differ from the AT1s issue...
DBRS Morningstar published a commentary discussing the impact of unrealized investment losses on Canadian life insurance companies’ balance sheets and solvency levels in the context of rising interest rates. Key highlights include the following: -- Canadian insurers' unrealized losses are considered insignificant in relation to their invested assets as a result of asset-liability matching and accounting measurement that provides for a largely offsetting movement in liabilities. -- Insurance...
DBRS Morningstar released a commentary titled “Canadian Life Insurers Finish 2022 in Good Shape as the Insurance Business Benefits from Higher Interest Rates,” which discusses Q4 2022 results for the Canadian publicly traded life insurance companies (lifecos) rated by DBRS Morningstar. Key highlights include the following: -- Top Canadian lifecos had a strong Q4 2022 and continue to generate near-record profitability. -- The big four lifecos benefit from higher interest rates despite the nega...
A director at Sun Life Financial Inc maiden bought 1,200 shares at 62.190CAD and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last tw...
On October 27, 2022, DBRS Limited (DBRS Morningstar) confirmed all ratings of Sun Life Financial Inc. and its related entities, including SLF’s Issuer Rating at A (high) and the Financial Strength Rating of Sun Life Assurance Company of Canada at AA. The trends on all ratings are Stable.
Sun Life Financial Inc. reported net income attributed to common shareholders of $466 million for Q3 2022, a 54.3% decline compared with Q3 2021 primarily driven by unfavourable equity market-related impacts, a $170 million charge related to the sale of Sun Life UK, and an increase in SLC Management's acquisition-related liabilities. Overall results equated to a return on equity (as calculated by DBRS Morningstar) of 7.7%, down from 17.6% a year ago.
DBRS Morningstar published a commentary assessing the impact of the recent massive flight cancellations and delays on the profitability of travel insurance and the overall credit profiles of insurance companies. Key highlights include the following: -- The rapid increase in travel demand has hit airlines with an unprecedented number of cancelled and delayed flights due to extreme staffing shortages, increased operational requirements, and fleet reductions during the pandemic. -- This material...
Sun Life Financial Inc. reported good net income attributed to common shareholders of $858 million for Q1 2022 that resulted in a return on equity (as calculated by DBRS Morningstar) of 14.4%. However, net income decreased by 8.4% from $937 million reported in Q1 2021 owing to less favourable market-related impacts, partially offset by a restructuring charge from the prior year's quarter and better results from MFS Investment Management.
Canada's federal budget that was tabled on April 7, 2022, contains several measures affecting life insurance companies. For example, the budget offered additional details on the government's previously announced prescription drugs and dental benefit programs as well as income tax increases arising from both permanent and temporary tax measures, including from IFRS 17 adoption. The budget also makes climate-related disclosures mandatory for insurance companies and banks starting in 2024. Key hig...
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