Sun Life and Manulife offer diversified global operations, strong dividend yields, and attractive valuations relative to earnings forecasts. The first demonstrates stronger near-term momentum with record core earnings and aggressive Asian expansion, while the other offers a higher dividend yield and a powerful asset management platform.
Life insurance companies represent one of the most compelling sectors for long-term investors seeking a combination of defensive characteristics, income generation, and growth potential.
Both stocks trade at attractive forward valuations with solid yields. Each offers a compelling risk-reward profile for income-oriented investors seeking exposure to the Canadian life insurance sector.
MANULIFE FINANCIAL (Toronto symbol MFC; www.manulife.ca) is Canada’s largest life insurer. It’s also a leading insurer in Vietnam, Cambodia, Singapore, and the Philippines. Assets under management and administration were $1.69 trillion as of September 30, 2025.
The company’s revenue in the quarter ended September 30, 2025, increased 21.7%, to $17.76 billion from $14.59 billion a year earlier; that was mainly due to a 38.7% jump in revenue for its investment portfolio.
Earnings rose 11.3%, to $2.035 billion from $1.828 billion; per share earnings gained 16.0%, to $1.16 from $1.00, on fewer shares outstanding.
Earnings in Asia (31% of the total) jumped 28.5% thanks to higher premium income and lower claims. New policies also increased earnings at the Canada division (25%) by 3.9%, while earnings at the Global Wealth Management arm (30%) gained 9.6%. Earnings in the U.S. (14%) fell 20.2% on higher claims.
Manulife continues to expand outside of Canada. It recently agreed to form a 50/50 joint venture with India’s Mahindra & Mahindra. Both partners will contribute $400 million U.S. to this venture, which will help Manulife sell more of its products to customers in rural areas of India.
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The stock trades at a low 11.1 times the company’s projected 2026 earnings of $4.50 a share. Manulife raised your quarterly dividend by 10.0% with the March 2025 payment. Investors now receive $0.44 a share instead of $0.40. The stock yields 3.5%.
Sun Life and Manulife’s high payout compensates for a temporary revenue setback
SUN LIFE FINANCIAL (Toronto symbol SLF; sunlife.ca) is Canada’s third-largest life insurer by market cap after Manulife (No. 1) and Great-West Lifeco (No. 2). Sun Life has $1.62 trillion in assets under management and administration.
Sun Life’s revenue in the third quarter of 2025 declined 19.0%, to $12.42 billion from $15.33 billion a year earlier. The decrease was primarily due to a 44.8% decline in investment income, partly offset by higher insurance revenue and fee income.
Earnings before unusual items in the quarter rose 3.1%, to $1.05 billion from $1.02 billion a year earlier. Per-share earnings increased 5.7%, to $1.86 from $1.76, on fewer shares outstanding.
Canadian earnings (37% of the total) increased 12.5% on higher profits from its life insurance and wealth management businesses.
Its U.S. earnings (13%) decreased 33.5% on lower group insurance and dental benefits revenue.
Sun Life’s earnings in Asia (20%) gained 32.9%, primarily from higher fee income at its wealth and asset management business and increased life insurance sales. As well, earnings at the Asset Management business (30%) rose 1.7% on higher assets under management.
The company’s shares trades at just 10.8 times the $7.86 a share it’s forecast to earn in 2026.
With the December 2025 payment, the company is raising your quarterly dividend by 4.5%, to $0.92 a share from $0.88. The new annual rate of $3.68 yields a high 4.4%.
Recommendation in Dividend Advisor: Sun Life Financial Inc. and Manulife Financial Corp. are buys.
