05:32 PM EDT, 05/09/2024 (MT Newswires) -- Sun Life Financial ( SLF ) edged up in after-hours New York trade after the company on Thursday reported a lower first-quarter underlying profit, reflecting sale of Sun Life UK and higher morbidity claims, while raising its dividend.

Underlying net income, which excludes most one-time expenses, fell 2% to $875 million, or $1.50 per share, from $895 million, or $1.52 per per share, last year.

"Underlying earnings were affected by the sale of Sun Life UK, higher morbidity claims, and the end of the Public Health Emergency in the U.S.," said chief executive officer Kevin Strain.

The insurer reported decreases in its four businesses. Group Health and Protection's underlying income fell 8%, to $280 million, on less favorable morbidity experience in U.S. medical stop-loss and lower results in U.S. Dental., due to Medicaid redeterminations following the end of the Public Health Emergency, Sun Life said.

Regionally, Asia underlying income increased 26% to $177 million while Canada and the US registered decreases.

Underlying return on equity (ROE) was also lower, to 16%, from 17.3%.

Sun Life declared a 3% dividend increase, to $0.81 per share, payable on June 28.

It expects to actively continue share buybacks in the second quarter.

The company's shares were last seen up US$0.10 to US$53.80 after hours. They closed up $0.60 to $73.43 on the Toronto Stock Exchange.