Sun Life Financial takes loss on accounting charge

Wed Feb 15, 2012 5:28pm EST
 
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TORONTO, FEB 15 - Sun Life Financial (SLF.TO: Quote) said on Wednesday it fell to a loss in the fourth quarter due to a C$635 million accounting charge.

Sun Life, Canada's No. 3 life insurer, lost C$525 million ($526 million), or 90 Canadian cents a share, in the quarter ended December 31. That compared with a year-before profit of C$504 million, or 84 Canadian cents a share.

Analysts had expected a loss of 59 Canadian cents a share, according to Thomson Reuters I/B/E/S/.

Sun Life took a C$635 million charge related to a change in how it accounts for hedges on certain annuity and insurance contract liabilities.

The company maintained its quarterly dividend of 36 Canadian cents a share. Some analysts had wondered whether the company would cut the payout.

(Reporting By Cameron French; Editing by Peter Galloway)