The insurer and financial firm saw its first-quarter net income drop 50 per cent year-over-year to $465 million, well below the $715 million expected by analysts, according to data compiled by S&P Global Market Intelligence. Shares fell nearly five per cent on Thursday afternoon. (The Logic)

Talking point: Sun Life’s underlying profit actually grew, amid a 19 per cent jump in net income in Asia. But it faced a $145 million proposed settlement in a class action lawsuit in Canada over fees collected from MetLife life insurance policies in the 1980s and 90s. Sun Life has been diversifying its business to capture market share in Asia and make a more concerted push into asset management, although a $165-million asset-management acquisition pushed the division’s net income down 51 per cent. Steve Peacher, executive chair of SLC Management, which reports under the asset management umbrella, said the business has been “underappreciated,” but he expects growth to accelerate as Sun Life prepares to face off with the “biggest institutions out there in the marketplace.”