Major Canadian insurers say third-quarter investment gains and business growth helped offset costs related to weather events and the COVID-19 pandemic.
Sun Life Financial posted underlying net income up 6.7% to $ 902 million for the quarter ended September 30, while Manulife reported basic net income up 4.4% to 1 , 52 billion, and Great-West Lifeco reported net income up 5% to 872 million.
Insurers have all reported an increase in their assets under management as they have seen inflows of investments and made gains in the markets. Sun Life’s assets grew 11% from the end of 2020 to $ 1,390 billion, while Manulife’s were up 7% to $ 1,400 billion during the same period. Great West’s assets under management grew 11% to $ 2.2 trillion.
Manulife said profits were hit by a $ 152 million charge on its fire, accident and miscellaneous reinsurance business, losses from Hurricane Ida and flooding in Europe, and the effects of COVID -19 on policyholders in Asia and the United States.
Great-West Life noted that its capital and risk management solutions segment posted a 31% drop in profits in the third quarter, compared to last year, due to recent major weather events and US life insurance claims totaling $ 71 million due to the direct and indirect impacts of COVID-19.
And Sun Life said its U.S. operations saw a 19% drop in underlying net income due to rising COVID-19 claims, as well as lower core earnings. in its Asian division due to the effects of the pandemic, particularly in Indonesia and the Philippines.
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