Barclays Cuts Estimates on Sun Life Financial (SLF); Going from Bad to Worse

Barclays maintains an 'Equalweight' on Sun Life Financial (NYSE: SLF) price target cut $2 to $26.

Barclays analyst says, "Q3 Earnings to be worse than Expected: While we were expecting the insurers' third-quarter earnings to be negatively impacted by the current macro environment and actuarial adjustments, Sun Life's announcement that it expects to report a Q3 loss of $572 million and $621 on an operating basis highlights just how bad the third quarter will be and the difficulty in predicting the insurers' earnings. The losses are related to the decline in equity markets and interest rates in the quarter as well as a $200-million impact from actuarial adjustments. In addition, the company expects to take a $500-million charge in Q4 related to a change in its accounting methodology for hedging costs associated with its variable annuities and segregated funds." (Barclays lowers FY11 EPS estimate from $2.64 to $2.63 and FY12 from $2.63 to $2.50)

For more ratings news on Sun Life Financial click here and for the rating history of Sun Life Financial click here.

Shares of Sun Life Financial closed at $23.56 yesterday.

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