Sun Life FinancialTSX:SLF -0.24%74 ROE % is 8.41% as of Mar. 2026, which is 34% below its 10-year median of 12.79. GuruFocus rates TSX:SLF with a GF Score™ of 74/100 and a GF Value™ of C$87.00 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 502 Insurance companies, Sun Life Financial ranks better than 54.98% on this metric.
The historical rank and industry rank for Sun Life Financial's ROE % or its related term are showing as below:
TSX:SLF'
s ROE % Range Over the Past 10 Years
Min: 10.97 Med: 12.79 Max: 18.21
Current: 12.84
During the past 13 years, Sun Life Financial's highest ROE % was 18.21%. The lowest was 10.97%. And the median was 12.79%.
TSX:SLF's ROE % is ranked better than 54.98% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs TSX:SLF: 12.84
Sun Life Financial (TSX:SLF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Sun Life Financial ROE % Related Terms
Sun Life Financial ROE % Historical Data
* Premium members only.
The historical data trend for Sun Life Financial's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Diversified subindustry, Sun Life Financial's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sun Life Financial ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Sun Life Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Sun Life Financial's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sun Life Financial (TSX:SLF) has a ROE % of 8.41% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sun Life Financial and its competitors. This is 34% below median its historical median of 12.79. Over the past decade, Sun Life Financial's ROE % has ranged from 10.97 to 18.21. According to the industry distribution chart, Sun Life Financial ranks #226 out of 502 companies in the Insurance industry, placing it in the top 45%.
Is Sun Life Financial's ROE % too high?
Sun Life Financial's current ROE % of 8.41% is 34% below median its 10-year median of 12.79. Over the past 10 years, this metric has ranged from a low of 10.97 to a high of 18.21. The Insurance industry median ROE % is 11.73. Sun Life Financial's value of 8.41% is 28.3% below this industry median. Based on the distribution chart, Sun Life Financial ranks #226 out of 502 companies in the Insurance industry, which is above the industry midpoint. Overall, Sun Life Financial has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sun Life Financial's ROE % compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Sun Life Financial ranks #226 out of 502 companies for ROE %. This puts Sun Life Financial in the upper half of its industry. The industry median ROE % is 11.73. Sun Life Financial's value of 8.41% is 28.3% below this benchmark. Historically, Sun Life Financial's own ROE % has ranged from 10.97 to 18.21 over the past decade. While the company's 10-year median is 12.79 vs. the industry median of 11.73, Sun Life Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sun Life Financial's current ROE % of 8.41% is 28.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sun Life Financial and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Life Financial's current ROE % is 8.41%, which is 34% below median its own 10-year median of 12.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Life Financial stock overvalued right now?
Based on GuruFocus' analysis, Sun Life Financial (TSX:SLF) is currently considered Modestly Overvalued. The stock's GF Value™ is C$87.00, compared to a current price of C$110.02 — trading 26.5% above its estimated fair value. The current ROE % is 8.41%, which is 34% below median its 10-year median of 12.79 and 28.3% below the Insurance industry median of 11.73. Sun Life Financial's overall GF Score™ is 74/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Sun Life Financial (TSX:SLF), the current ROE % is 8.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sun Life Financial (TSX:SLF) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Life Financial stock appears to be overvalued.
The current stock price of C$110.02 is trading 26.5% above its estimated GF Value™ of C$87.00.
GuruFocus considers Sun Life Financial to be Modestly Overvalued.
Key valuation signals for TSX:SLF:
ROE %: 8.41% (34% below median its 10-year median of 12.79)
GF Value™: C$87.00 vs. price of C$110.02 (26.5% above fair value)
Industry Position: 28.3% below the Insurance median (#226 of 502)
No single metric tells the full story. See the TSX:SLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Life Financial is one of the Big Three Canadian life insurers. The Canadian business contributed around 35% of its 2025 adjusted earnings. In that segment, the firm provides health, life insurance, and annuity products to individual and group customers. Its US business is mostly group health and contributed about 17% of the firm's adjusted earnings in 2025. Sun Life also offers life insurance and wealth products in several Asian markets with a strong presence in Hong Kong and the Philippines. The Asia segment contributed around 18% of adjusted 2024 earnings. Its asset management business had around CAD 1.2 trillion total assets under management or administration at the end of 2025 and represents around 30% of the firm's earnings.
74GF Score
Get the complete analysis for TSX:SLF
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:SLF has been successfully added to your 
