05:25 PM EST, 11/05/2025 (MT Newswires) -- Sun Life Financial ( SLF ) after-trade on Wednesday reported third-quarter underlying earnings that beat estimates and also announced a 4.5% dividend increase to $0.92 per share.

Underlying net income rose 3% to $1.05 billion, or $1.86 per share, from $1.02 billion, or $1.76, in the prior-year period. The result beat the $1.83 per share that analysts polled by FactSet had expected.

Sun Life's asset management & wealth, and individual protection segments posted increases, that were partially offset by an unfavorable insurance experience across Group Benefits and Dental in the U.S.

Underlying return on equity was 18.3%, compared with 17.9% in the prior year period.

Assets under management increased 7% to $1.62 billion over the same period, the company said.

"Our Q3 results reflect the strength of our balanced and diversified business strategy," said chief executive Kevin Strain. "Both Canada and Asia delivered strong underlying net income, while our U.S. businesses were challenged by unfavourable experience. We're also continuing to see steady growth in our asset management businesses, including capital raising at SLC Management and institutional net flows at MFS."

Sun Life ended the quarter with a LICAT ratio of 154%.

The company will pay its higher dividend of $0.92 per share on Dec. 31, to shareholders of record on Nov. 26.

Sun Life shares were last seen up US$0.04 to US$61.71 in U.S. after-hours trade. They closed up $0.53 to $87.03 on the Toronto Stock Exchange.