Company News

Canada's Sun Life shares fall 4 percent on U.S. asset manager outflows

TORONTO, Aug 9 (Reuters) - Shares in Canadian insurer Sun Life fell as much as 4.2 percent on Thursday after analysts expressed concern about the performance of its U.S. asset management business MFS Investment Management.

Sun Life on Wednesday reported second-quarter earnings that were ahead of market expectations, helped by a strong performance from its Asian businesses.

However, it said MFS experienced net outflows of $11.5 billion in the quarter, up from $4.3 billion last quarter. RBC analyst Darko Mihelic said that was more than the $10.7 billion he expected and also noted that MFS’s operating margin had declined.

“We think the market is likely to react negatively to MFS results in the near term,” he said.

Rival Manulife’s rose 1 percent after it reported second-quarter earnings that were better-than-expected. (Reporting by Matt Scuffham Editing by Bill Trott)