Latest news with #KevinStrain
Globe and Mail
3 days ago
- Business
- Globe and Mail
Sun Life shares plunge as Medicaid funding uncertainty prompts revision to U.S. dental forecast
Sun Life Financial's SLF-T shares plunged as much as 8.5 per cent on Friday, a day after the Canadian insurer said it would miss a 2025 profit target for its dental business in the U.S. due to uncertainty over Medicaid funding. Sun Life, which bulked up its dental business through the US$2.5-billion acquisition of DentaQuest in 2022, said underlying net income for the dental business, which has struggled in past quarters, is expected to be below US$100-million in 2025. The forecast revision was driven by uncertain Medicaid funding resulting in slower negotiations with states on coverage rates and higher Medicaid claims, the company said. Sun Life works with U.S. states to administer Medicaid and Medicare Advantage dental benefits through the DentaQuest business and is dependent on government funding. 'The claims are also increasing at a faster pace, which I partially think is because people are seeing that they may lose their Medicaid benefits. So they're going to the dentist more quickly,' CEO Kevin Strain said in an interview on Friday. Strain noted that the states have been reluctant to pass on the increased claims costs, something he expects to sort itself out over the next few years. 'If we're struggling, you can imagine that the smaller players are really struggling with it ... We'll work our way through it,' he said. The U.S. remained one of the company's fastest growing and least capital-intensive regions, Strain added. Sun Life posts rise in quarterly profit on strong Asia-unit performance Sun Life expects over 12-per-cent underlying net income growth for Sun Life U.S. in the long term, with the dental business expected to contribute at least a third of overall earnings in the region. The stock has lost about 8 per cent of its value, including Thursday's losses, while peer Manulife which also reported weakness in its U.S. business, is down 6.5 per cent. 'We believe that a reversal in the (Sun Life's) U.S. dental business that caused the company to retract its 2025 profit target for this business has implications beyond the quarter,' National Bank analyst Gabriel Dechaine said. Analysts have said Sun Life's dental business could be vulnerable to provisions in U.S. President Donald Trump's recent tax-cut and spending legislation, known as the One Big Beautiful Bill Act, which aims to cut Medicaid spending. That could weigh on the future growth of the business as tighter eligibility requirements could shrink Medicaid enrollment over time. Underlying net income fell 4 per cent in the U.S., which accounts for about a fifth of the company's underlying earnings. Its underlying earnings of $1.79 in the second quarter were above analysts' average estimate of $1.78 per share, according to LSEG data.
Reuters
3 days ago
- Business
- Reuters
Sun Life shares plunge as Medicaid uncertainty prompts US dental forecast revision
TORONTO, Aug 8 (Reuters) - Sun Life Financial's ( opens new tab shares plunged as much as 8.5% on Friday, a day after the Canadian insurer said it would miss a 2025 profit target for its dental business in the U.S. due to uncertainty over Medicaid funding. Sun Life, which bulked up its dental business through the $2.5 billion acquisition of DentaQuest in 2022, said underlying net income for the dental business, which has struggled in past quarters, is expected to be below $100 million in 2025. The forecast revision was driven by uncertain Medicaid funding resulting in slower negotiations with states on coverage rates and higher Medicaid claims, the company said. Sun Life works with U.S. states to administer Medicaid and Medicare Advantage dental benefits through the DentaQuest business and is dependent on government funding. "The claims are also increasing at a faster pace, which I partially think is because people are seeing that they may lose their Medicaid benefits. So they're going to the dentist more quickly," CEO Kevin Strain said in an interview on Friday. Strain noted that the states have been reluctant to pass on the increased claims costs, something he expects to sort itself out over the next few years. "If we're struggling, you can imagine that the smaller players are really struggling with it ... We'll work our way through it," he said. The U.S. remained one of the company's fastest growing and least capital-intensive regions, Strain added. Sun Life expects over 12% underlying net income growth for Sun Life U.S. in the long term, with the dental business expected to contribute at least a third of overall earnings in the region. The stock has lost about 8% of its value, including Thursday's losses, while peer Manulife ( opens new tab which also reported weakness in its U.S. business, is down 6.5%. "We believe that a reversal in the (Sun Life's) U.S. dental business that caused the company to retract its 2025 profit target for this business has implications beyond the quarter," National Bank analyst Gabriel Dechaine said. Analysts have said Sun Life's dental business could be vulnerable to provisions in U.S. President Donald Trump's recent tax-cut and spending legislation, known as the One Big Beautiful Bill Act, which aims to cut Medicaid spending. That could weigh on the future growth of the business as tighter eligibility requirements could shrink Medicaid enrollment over time. Underlying net income fell 4% in the U.S., which accounts for about a fifth of the company's underlying earnings. Its underlying earnings of C$1.79 in the second quarter were above analysts' average estimate of C$1.78 per share, according to LSEG data.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Sun Life posts rise in quarterly profit on strong Asia-unit performance
Canada's Sun Life Financial SLF-T reported a jump in second-quarter profit on Thursday, driven by strong growth in its Asia unit, where insurers are expanding to tap a growing, underinsured middle class and offset weakness in the U.S. market. 'Sun Life's Q2 results were driven by record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings,' CEO Kevin Strain said in a statement. Underlying net income from the company's Asia operations helped lift overall earnings to $716 million, or $1.26 per share, for the quarter ended June 30, up from $646 million, or $1.11 per share, a year earlier. However, underlying earnings from its individual protection business declined 10% to $299 million. An AI app is helping diabetics count carbs with photos of their food – and major health care insurers are buying in Underlying earnings from its group health and protection business rose 7% to $326 million, while individual protection earnings fell 10% to $299 million. Wealth and asset management income was flat at $455 million. The Toronto-based company reported underlying EPS of $1.79, compared with analysts' average estimate of $1.78 per share, according to LSEG data. Underlying earnings from Sun Life Financial's group health and protection businesses, which provide insurance policies to employer and government plan members, rose 7% to $326 million. Sun Life also said David Healy will become President of Sun Life U.S. effective Sept. 1, 2025, succeeding Dan Fishbein, who plans to retire in March 2026. Shares of Sun Life have declined about 1% this year, while rival Manulife MFC-T, which also reported strong Asia growth this week, is down 6.4%.
Reuters
4 days ago
- Business
- Reuters
Sun Life's second-quarter profit rises on strong Asia unit performance
Aug 7 (Reuters) - Canada's Sun Life Financial ( opens new tab reported a jump in second-quarter profit on Thursday, driven by strong growth in its Asia unit, where insurers are expanding to tap a growing, under-insured middle class and offset weakness in the U.S. market. "Sun Life's Q2 results were driven by record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings," CEO Kevin Strain said in a statement. Underlying net income from the company's Asia operations helped lift overall earnings to C$716 million ($520.88 million), or C$1.26 per share, for the quarter ended June 30, up from C$646 million, or C$1.11 per share, a year earlier. However, underlying earnings from its individual protection business declined 10% to C$299 million. Underlying earnings from its group health and protection business rose 7% to C$326 million, while individual protection earnings fell 10% to C$299 million. Wealth and asset management income was flat at C$455 million. The Toronto-based company reported underlying EPS of C$1.79, compared with analysts' average estimate of C$1.78 per share, according to LSEG data. Underlying earnings from Sun Life Financial's group health and protection businesses, which provide insurance policies to employer and government plan members, rose 7% to C$326 million. Sun Life also said David Healy will become President of Sun Life U.S. effective Sept. 1, 2025, succeeding Dan Fishbein, who plans to retire in March 2026. Shares of Sun Life have declined about 1% this year, while rival Manulife ( opens new tab, which also reported strong Asia growth this week, is down 6.4%. ($1 = 1.3746 Canadian dollars)
Cision Canada
4 days ago
- Business
- Cision Canada
Sun Life Announces Appointment of David Healy as incoming President of Sun Life U.S. Français
TORONTO, Aug. 7, 2025 /CNW/ - Kevin Strain, President and Chief Executive Officer of Sun Life is pleased to announce that David Healy, currently President of the Dental business at Sun Life U.S., will become the new President of Sun Life U.S. effective September 1, 2025. Mr. Healy succeeds Dan Fishbein, M.D., who announced his intention to retire in March 2026. Mr. Fishbein will assume the title of Executive Chair, Sun Life U.S. and will work with Mr. Healy to transition the leadership of the business. "Under Dan's leadership, our U.S. business has transformed over the past 11 years into a leader in health-related benefits and services that connect to the broader healthcare ecosystem and help people access the care and coverage they need. I want to thank Dan for his many contributions to Sun Life and we wish him all the best as he embarks on his next chapter," said Kevin Strain, President & CEO, Sun Life. "We're excited to have David join the Sun Life Executive Team and I am confident that David's broad experience and business acumen will help drive the next steps in our U.S. strategy. His combination of technology and operations experience and his employee benefits background are perfectly aligned to our ambitions for the U.S. business." Prior to his current role, Mr. Healy led the Group Benefits business for seven years, with a growth mindset focused on investing in new capabilities and services to make benefits easier for Clients and broadening access to care. His more than 20 years at Sun Life include leading the U.S. Operations and Technology teams, where he combined services across business units for consistency in the Client experience and modernized IT delivery. He also oversaw the integration of Assurant Employee Benefits (AEB), which Sun Life acquired in 2016, and was instrumental in the acquisition of Insurtech Maxwell Health in 2018, which added digital talent and expertise to the organization. Prior to joining Sun Life, Mr. Healy held roles at Keyport Life Insurance Company and Manulife Financial. He graduated from Providence College, where he received a Bachelor of Science in marketing and holds an MBA, high honors, from Boston University. About Sun Life Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2025, Sun Life had total assets under management of $1.54 trillion. For more information, please visit Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
