Canadian insurer Sun Life Financial on Wednesday reported a bigger-than-expected drop in underlying profit for the second quarter.
Underlying net income, which excludes the impact of interest rates and equity market movements, fell about 10 per cent to $554 million, or 90 Canadian cents per share, in the quarter ended June 30.
Analysts on average were expecting earnings of 92 cents per share, according to Thomson Reuters I/B/E/S.
Sun Life said its reported net income fell 34 per cent to $480 million, or 78 cents per share. That reflected a decline in interest rates during the second quarter, which the company said was due to macroeconomic factors including Britain's decision to leave the European Union.
"Rounding out a poor quarter for the lifecos, Sun Life's earnings are not likely to receive a warm reception in trading tomorrow," said Barclays' analyst John Aiken.
Manulife Financial Corp, Canada's biggest life insurer, last week reported a lower-than-expected quarterly profit, blaming low interest rates and Brexit-driven market volatility.
Sun Life's underlying net income in Canada fell 20 per cent to $200 million, while underlying net income from its U.S. business rose 8.6 per cent to $114 million.
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