By Danielle 
Sun Life Financial Inc. highlighted its growing health and protection business in its second-quarter results, with group dental performance in the U.S. driving much of the momentum.
Improved dental results, supported by Medicaid repricing, fee income and management actions, helped increase underlying net income in this segment by $21 million compared to the same period last year.
Although Sun Life’s dental segment saw gains, along with overall growth in Asia, earnings were partially tempered by a $61 million impairment charge tied to the early termination of a U.S. group dental contract.
The Toronto-based insurer reported earnings of $716 million, up 11 per cent year-over-year, but still below analyst expectations. Earnings per share were $1.26, compared to the anticipated $1.80, according to LSEG Data & Analytics.
In the U.S., Sun Life’s group dental sales remained strong despite overall group benefits sales declining six per cent due to lower medical stop-loss volume. The dental unit saw higher commercial and Medicaid sales.
Sun Life says it remains a leader in health and benefits across North America as it continues to build out its dental portfolio through both public and private channels.
‘Significant milestone’ on CDCP
The company also said it marked a “significant milestone” with the one-year anniversary of administering the Canadian Dental Care Plan (CDCP), particularly following the recent expansion to include eligible adults aged 18 to 64.
It says 5.2 million Canadians have been approved under the federal plan, which aims to improve access to oral health care for up to nine million residents.
However, the company did not disclose any figures regarding the CDCP’s financial performance.
Read related story: Half of complex dental claims denied: Health Canada responds to concerns over CDCP