Sun Life books 2Q profit buoyed by MFS inflows

Sun Life Financial today reported a 13.8% gain in net income for the second quarter, compared with the same period in 2008. The firm reported a profit of $551.7 million, up from $484.5 million in the same 2008 quarter. Revenue, adjusted for currency changes, also increased to $5.4 billion in the quarter, up from $5.1 billion in the second quarter of 2008. Toronto-based Sun Life Financial Inc. cited improved equity markets, as well as the performance of its five business units, including MFS Investment Management Inc. of Boston, as factors in the upswing. “Equity markets showed substantial improvement in the second quarter, resulting in strong earnings gains,” Donald Steward, chief executive at Sun Life, said in a statement. “Continued excellence in investment performance” resulted in positive net flows at MFS, he added. Indeed, net inflows for the second quarter at MFS were $4.9 billion, up from $1 billion in the second quarter of 2008. Assets under management grew to $147 billion as of June 30, up from $134 billion as of Dec. 31. Still, the market decline took its toll on earnings. MFS had a net income of $27 million for the quarter, compared to $55 million in the second quarter of 2008. The decrease was due to lower average net assets as a result of the market decline, the firm said in its report.