UPDATE 1-Sun Life rebounds to profit on investments

Wed Feb 13, 2013 6:14pm EST
 
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* Profit tops estimates, boosted by investments

* Company has reduced markets exposure

* Premiums and deposits jump

TORONTO, Feb 13 (Reuters) - Sun Life Financial Inc, Canada's No. 3 insurer, said on Wednesday it rebounded to a stronger-than-expected fourth quarter profit from a year-earlier loss on the back of strong investments.

Volatile markets in the wake of the 2008 financial crisis have prompted Sun Life to take several quarterly losses over the past five years.

But signs of economic optimism, particularly in Europe, prompted investors to push the shares up by nearly 40 percent last year, although they are still trading at barely half of the company's all-time high set in 2007.

The stock closed at C$30.00 on the Toronto Stock Exchange.

The Toronto-based company earned C$395 million ($394.03 million), or 65 Canadian cents a share, in the quarter ended Dec. 31. That compared with a year ago loss of C$525 million, or 90 Canadian cents, which was due to an accounting charge.

On an operating basis, Sun Life earned 76 Canadian cents a share. Analysts had expected a profit of 63 Canadian cents a share, according to Thomson I/B/E/S.   Continued...